(Bloomberg) -- Bitcoin surpassed $67,000 for the first time in more than two months, but quickly whipsawed traders as volatility returned to the digital asset sector with US elections approaching.

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“The confluence of factors ranging from markets to politics has created a potent mix of short squeezes, speculative positioning, and fresh capital inflows, driving Bitcoin to these new local highs not seen since July,” said Chris Newhouse, director of research at Cumberland Labs.

The largest cryptocurrency increased as much as 3% on Tuesday to $67,878, before swinging between gains and losses in New York.

“Overall, markets have been moving sideways since the crypto hit its all-time high” in March, said Fadi Aboualfa, head of research at crypto custodian Copper Technologies Ltd. The industry’s so-called Fear and Greed Index, which tracks accumulation and sentiment among Bitcoin traders, has registered 2024 as the token’s greediest year on record, Aboualfa said, “so it’s normal to expect some cooling off.”

The original cryptocurrency had moved less than 5% for 34 straight sessions through Thursday, which was on par with the longest such streak of calm in a year, according to data compiled by Bloomberg. The doldrums in price movement has disappointed many in the crypto community since the asset class has historically performed well in October, earning the nickname “Uptober.”

There was a significant uptick in Bitcoin futures and perpetuals open interest last week, with interest increasing by around 33,000 Bitcoin ($2.1 billion), according to ETC Group. Futures open interest reached an all-time high in US dollar terms, the firm said in a note on Tuesday.

“What we’re seeing now closely mirrors the price action and market structure from one year ago, when CME activity accelerated midway through October,” said Vetle Lunde, head of research at K33 Research. Futures premiums have rallied to five-month highs on CME, Lunde said, indicative of significant demand by institutions seeking to add to their exposure on cryptocurrencies.

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