Bitcoin has surged over 8% in just two trading sessions, edging close to its all-time high of nearly $74,000, previously reached in March. On Tuesday, the leading cryptocurrency spiked as high as $73,433 in New York trading. Meanwhile, other popular tokens like Ethereum (ETH) and the meme-favorite Dogecoin (DOGE) saw similar upward momentum.
The upcoming U.S. presidential election has added an intriguing layer to Bitcoin’s recent rally. The crypto community has nicknamed Bitcoin the “Trump trade,” as the former president, now the Republican nominee, has advocated for digital assets. Polls show a close race between Trump and Democratic contender Vice President Kamala Harris, while prediction markets currently lean towards a Trump lead.
According to IG Australia market analyst Tony Sycamore, Bitcoin is reflecting increased anticipation of a Trump win. “Bitcoin needs a sustained break past $70,000 to fuel confidence it can surpass its March peak of $73,798,” he noted, signaling that traders are closely watching this level as a key indicator.
Trump has promised to establish the U.S. as a global crypto hub if elected, contrasting with Harris’s more cautious stance, which leans toward developing a supportive but regulated framework for the industry. Both candidates’ perspectives differ sharply from President Joe Biden’s stricter stance on digital assets.
Adding to the excitement, Trump has expressed plans to ask billionaire Elon Musk, a significant campaign donor, to lead an initiative to streamline government spending through a so-called Department of Government Efficiency, or DOGE—a cheeky nod to the Dogecoin token Musk has championed. This Musk-Trump connection has bolstered crypto market sentiment, according to Arisa Toyosaki, co-founder of crypto derivatives platform Cega.
In the options market, traders are increasingly betting on Bitcoin hitting $80,000 by the end of November, regardless of the election outcome. Implied volatility has spiked in anticipation of Election Day on November 5. Additionally, spot Bitcoin ETFs in the U.S. have seen roughly $3.6 billion in inflows this month alone, reflecting strong investor interest.
Despite the rally, Bitcoin has faced some headwinds, including the Federal Reserve’s tempered outlook on rate cuts and heightened regulatory scrutiny of Tether, a key stablecoin in crypto trading. Still, Bitcoin has demonstrated resilience, climbing 71% so far in 2024.
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