Bitcoin Cracks $71,000 With A Breakout As Election Approaches
With a week to go before the election, Bitcoin cracks another run past $70K
By: Zack Guzman
October 28, 2024
Bitcoin popped another run past $70,000 as one of the most influential elections fast approaches. Today, we dig into what races are most important to watch, and how it could impact crypto — plus how artificial intelligence and crypto projects are increasingly merging by giving AI agents the ability to spend money.
Per usual you can watch us discuss all these topics and more in our Monday News Recap show above. Let’s dig in…
Bitcoin Inflows Stay Steady
As we approach the election, Bitcoin is on the move again, popping beyond the $70,000 level. Year-to-date, we’ve seen over $27 billion flow into digital asset investment products, and last week was no exception with $901 million in inflows.
Bitcoin led the pack, drawing $920 million, while Ethereum continued its losing streak with $35 million in outflows. The trend remains consistent: institutions are favoring Bitcoin ETFs, while Ethereum struggles to capture the same interest.
Solana, on the other hand, has been a surprise performer, attracting over $10 million in inflows. The Solana chart shows solid momentum, reflecting renewed enthusiasm around meme coins, which have seen a boost lately. But the question remains—will the upcoming election shift these trends, or are we set for more of the same?
Tether Under Investigation
On Friday, news broke about a new investigation into the world’s largest digital dollar, Tether. The stablecoin giant, with a market cap exceeding $120 billion, has faced scrutiny before, but this time the probe has raised fresh concerns about anti-money laundering violations.
Considering that Tether holds more money in U.S. Treasuries than Germany — the stakes are high. Perhaps no higher than for Cantor Fitzgerald CEO Howard Lutnick — the man who has vouched for Tether and whose company holds more than $80 billion in Treasuries in custody for Tether.
Tether's CEO denied knowledge of the investigation, but Howard Lutnick’s remarks at a recent Bitcoin conference now make more sense. Lutnick, who is also Trump's co-chair, said he and the company had always cooperated with law enforcement agencies around the world.
If Trump wins the election and Lutnick steps into a key role, could this investigation quietly disappear? We’ll be watching how this plays out on Election Day.
Election Day Dynamics: What It Means for Crypto
We’re not just talking about the presidential race — control of the Senate and House is also in focus. As Perianne Boring from the Digital Chamber explained on last week's show, Republicans are favored to flip the Senate, with the House being a closer call. Yet, the outcome could lead to the most pro-crypto Congress in history, no matter who wins the White House.
With just a week to go before the election, candidates are jockeying for final endorsements. Interestingly, The Washington Post’s decided not to endorse a presidential candidate for the first time in decades (with some saying it was Jeff Bezos who called off a Harris endorsement.)
Meanwhile, Coinage is putting its community-owned model to the test by letting NFT holders vote on whether we should endorse a candidate via Snapshot. We’ll see what our community says.
AI & Crypto Are Merging with AI Agents
Beyond politics, we’re seeing new trends emerge in the crypto space, especially around AI agents.
Last week, we mentioned one such project, an AI called Terminal of Truths that endorsed a crypto project called “Goat” and pumped its price to become a crypto millionaire.
Now, Coinbase is launching a new tool that allows users to quickly set up AI agents capable of managing on-chain activities as well. The tool makes it easier for non-developers to create autonomous bots that can trade, stake, interact with smart contracts — and also comes with an optional Twitter bot who can tweet to promote what it’s doing as well. In theory, this could give rise to bots working for people online with a way to make money they pass back to their humans (or… just keep for themselves?)
Powerful VC Marc Andreessen has also been vocal about the potential for community-owned AI-powered funds, and Coinbase’s move brings us closer to a future where AI agents could operate decentralized funds, trading strategies, and more. But with the power of these tools also come questions about transparency and governance.
For now, Coinage remains human run and steered by our NFT holders. If you aren’t a holder of a Caucus or Network NFT, now would be the time as we prepare to open our formal membership process to admit members into our DAO/Coop.
With Bitcoin pushing $70,000, Solana showing strength, and fresh Tether FUD emerging, we’re heading into an eventful end to October. As the election nears, the stakes are higher than ever for crypto, and we’ll keep you updated on how it all unfolds.
Thanks for reading Coinage! Don’t forget, you can support our community-owned outlet by sharing this with friends, by scooping up a Coinage NFT, or by staking with our community validator!