Investing.com-- Bitcoin’s price rose on Wednesday, steadying close to a near 3-month high on hopes that the 2024 U.S. elections will yield friendlier regulations, while improving capital inflows also boosted prices.
The world’s biggest cryptocurrency appeared to have broken out of a $50,000 to $65,000 trading range seen through most of the year, and was now about $7000 away from making new record highs.
Sentiment was also boosted earlier this week by defunct exchange Mt Gox extending its timeline for returning stolen tokens to creditors.
Bitcoin rose 3% to $67,845.0 by 08:53 ET (12:53 GMT).
Bitcoin buoyed by US regulatory hopes
Sentiment towards crypto improved this week after Democratic presidential candidate Kamala Harris pledged to form a definite regulatory framework for crypto, although she did not elaborate on the details.
Harris’ pledge marked a crypto-friendly stance from both major frontrunners for the next U.S. president, with Republican nominee Donald Trump having maintained a largely pro-crypto stance in recent campaigning.
Trump’s World Liberty Financial crypto project went live this week, with reports stating that it raised at least $220 million in token sales.
Trump also appeared to have recovered some ground against Harris, recent polls showed, spurring bets that a Trump presidency will better serve crypto interests.
Still, polls point to a tight presidential race, with about three weeks left to the ballot.
Crypto investment products see weekly inflows
Data from digital asset manager CoinShares showed crypto products saw inflows of $407 million in the week to October 13, with a bulk of them directed towards Bitcoin. This came after assets clocked mild outflows in the prior week.
CoinShares said the inflows were driven by increased speculation over a potential Trump victory in the 2024 elections, which helped crypto markets weather recent shifts in expectations for U.S. interest rates.
Crypto price today: altcoins less cheery than Bitcoin, DOGE soars
Broader crypto prices were mixed, with major altcoins mostly lagging Bitcoin. World no.2 crypto Ether climbed 1% to $2,633.23.
XRP and SOL added 0.6% and 1.4%, respectively, while ADA fell 0.8%. MATIC remained flat.
Among meme tokens, DOGE surged more than 10%.
Italy to hike capital gains tax on crypto
Italy is planning to raise the capital gains tax on bitcoin and other cryptocurrencies to 42%, local newspaper Il Sole 24 Ore reported, citing remarks from the country's Vice Economy Minister Maurizio Leo.
"We foresee an increase in the tax on bitcoin capital gains from 26% to 42%," Leo reportedly stated. The measures, approved by the Council of Ministers on Tuesday evening, aim to raise funds to support families, young people, and businesses.
Since the 2023 tax year, cryptocurrency capital gains above €2,000 ($2,180) have been taxed at 26%, following new regulations that shifted away from treating crypto as foreign currency, which previously benefitted from lower tax rates.
The proposed increase aligns with reports that UK Chancellor Rachel Reeves is considering a hike in capital gains taxes, including on cryptocurrencies, from 20% to 39%.
Per the report, Leo also mentioned that the government intends to limit cash usage as part of its efforts to reduce tax evasion.
Ambar Warrick contributed to this report.