Cryptocurrencies rallied on Tuesday as funds quickly flowed back into the industry. The largest tokens were the biggest beneficiaries Bitcoin (CRYPTO:BTC) climbs almost to an all-time high.

As of 1:30 p.m. ET, Bitcoin had risen 5.6% over the past 24 hours to $72,950. Ethereum (CRYPTO:ETH) rose 6.8% to $2,676, and Dogecoin (CRYPTO: DOGE) was up 17.8% to $0.1778.

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There were big buyers in the market, driven by the popular exchange Binance overnight. Quantitative traders have highlighted the influx of Bitcoin buyers, boosted by $175 million as short positions liquidated.

Volume doubled on Tuesday and Bitcoin broke $70,000, which is considered a resistance point for the token.

This continues a long line of inflows for the crypto industry, with 47,000 Bitcoin added to Bitcoin ETFs in the last two weeks alone.

Investors are speculating about some factors that could improve the value of cryptocurrencies in the future. First, the US election is a week from today and no matter who wins, a friendlier regulatory environment is likely to emerge.

Larger tokens like Bitcoin and Ethereum are not in a legal gray area, but many exchanges are, and the U.S. Securities and Exchange Commission (SEC) has made conflicting decisions about what is legal and what is not in cryptocurrencies. It’s possible that a friendlier regulatory environment would lead to more innovation and crypto usage in the long term.

Interest rate cuts could also be on the horizon, and investors are trying to get ahead of this possible policy change. Lower interest rates are considered positive for growth stocks and speculative assets like Bitcoin.

It’s also possible that the proposed higher tariffs could lead to higher inflation. Bitcoin and Ethereum are considered a hedge against inflation, although this thesis does not hold true in 2022 when cryptocurrencies fell as inflation rose.

Adding all these trends together, traders are rushing into cryptocurrency today.

Once again, Elon Musk is being blamed for Dogecoin’s jump in value. He campaigned with former President Donald Trump and has discussed running what he calls the Department of Governmental Efficiency (DOGE). The tie between Musk and the Dogecoin token has been going on for years and he has made such innuendos to the token before.

Although Musk is a fan of Dogecoin, he has nothing to do with its operation and it is still a meme coin that only has value as long as the meme.

The story continues