Bitcoin's price is surging as the U.S. presidential election approaches, driven by a combination of political and market factors. The cryptocurrency is nearing its all-time high near $74,000, with analysts predicting it could reach this milestone before Election Day.

On Tuesday, bitcoin's price topped $66,000, reflecting ongoing optimism around the world's leading cryptocurrency.

One key driver is the increasing popularity of bitcoin ETFs (exchange-traded funds), which have attracted more than $19 billion in net inflows. This influx of institutional money has significantly boosted demand for bitcoin. Additionally, traders are showing optimism by betting on higher prices for the cryptocurrency, with some market analysts forecasting that the world's top crypto could near the $115,000 mark by year-end.

The fast-evolving political landscape is also playing a pivotal role. Former president Donald Trump's improving election odds are correlating with bitcoin's recent rise. Prediction markets like Polymarket now give Trump a 58% chance of winning. Despite once referring to bitcoin as a "scam," Trump has today positioned himself as a cryptocurrency supporter, and recently launched a DeFi platform with his sons, aiming to challenge traditional finance.

On the other hand, Vice President Kamala Harris has recently begun outlining her policy plans for digital assets, particularly as a way to appeal to Black male voters – more than 20% of whom invest in digital assets. While her stance is still under development and light on details, the crypto community is closely watching for the potential regulatory implications.

Geoff Kendrick, head of digital asset research at Standard Chartered, predicts bitcoin could reach $200,000 by next year, regardless of the election outcome. He cites potential policy changes, inflation concerns, and continued ETF inflows as key factors.

As the election nears, bitcoin's price movements are becoming increasingly intertwined with political developments. Whether Trump's pro-crypto stance or Harris's crypto policies will have a significant impact remains to be seen. If Bitcoin continues to maintain its upward momentum, however, there are signs the coin could soon reach $70,000 and potentially hit new all-time highs as the election approaches.