As a seasoned researcher with a background in both politics and finance, I find myself at the crossroads of two fascinating realms as the US presidential election and Bitcoin’s price trajectory intersect. The recent surge of Bitcoin to $70,000 and the polling trends favoring Trump have certainly piqued my curiosity.
Approaching the US presidential election, I’ve noticed a significant spike in Bitcoin‘s value, reaching an unprecedented $70,000 after more than five months. This remarkable jump aligns with former President Donald Trump’s lead in the polls against Vice President Kamala Harris. If Trump wins, this could potentially reshape the cryptocurrency market landscape as we know it.
$70,000 As Key Level For Bitcoin To Surpass March Record
1) The surge in Bitcoin’s value lately can be attributed partly to a rise in the stock market. Analysts also suggest that investors might be factoring in a possible win for Trump, causing them to invest more in Bitcoin.
According to Tony Sycamore, an analyst at IG Australia Pty Ltd, for Bitcoin to instill confidence in breaking its old record of $73,798 (set in March), it must convincingly move beyond the $70,000 mark.
Trump is promoting himself as a supporter of digital currencies, promising to establish the United States as the global leader in this field. Conversely, Harris is adopting a more careful approach, advocating for a system of regulations within the industry.
In the midst of the political landscape, options traders are increasingly placing larger wagers, as they foresee Bitcoin potentially climbing to $80,000 before November’s conclusion, regardless of the election outcome.
On Election Day, November 5th, there’s a noticeable increase in implied volatility, suggesting market unpredictability. It’s worth mentioning that US-based Bitcoin ETFs have witnessed about $3.1 billion in total inflows this month, adding to the optimistic feelings towards cryptocurrencies.
Regulatory Concerns Surround Harris’s Stance On Crypto
As a crypto analyst, I’ve emphasized the potential impact of the upcoming elections on the digital currency market, labeling it the “Crypto Election.” This event could significantly shape the trajectory of the cryptocurrency sector.
In simple terms, prediction markets show Trump as the frontrunner with about 60% chance, but this may be influenced by the crypto community’s past allegiance to him. On the other hand, national surveys suggest a closer contest, where Harris is narrowly ahead by slightly more than 1%.
The crypto industry has contributed approximately $119 million to campaigns this election year, representing nearly half of all corporate donations.
As a researcher, I’ve observed an interesting strategy among key players such as Coinbase and Ripple. Instead of backing individual political candidates, they’re making strategic donations that span across party lines, with the aim of fostering legislation that is favorable to their interests in the cryptocurrency sector.
Although Trump and Harris have openly shown positive sentiments towards cryptocurrencies, it’s unclear if they are committed to taking specific legal actions in this area.
Harris’s regulatory strategy stirs apprehension due to the lack of concrete details in her campaign’s focus on safeguarding minority investors in digital assets.
Additionally, during her time as Vice President, notable cryptocurrency skeptics like Gary Gensler, Chairman of the SEC, and Janet Yellen, Treasury Secretary, were appointed to their positions.
In my perspective as a researcher, the evolution of President Trump’s stance towards cryptocurrency, marked by the success of his NFT project and the development of a Decentralized Finance (DeFi) platform, hints at a growing acceptance and interest in this dynamic sector.
In the lead up to the election, VirtualBacon advises that we should bear in mind how the economic reports published after the vote could impact the overall mood of the financial markets.
In November, the Federal Open Market Committee (FOMC) gathering may offer essential information about inflation rates and market fluidity, which can influence not only the general market but also the path of cryptocurrencies.
BTC’s Path To $100,000
Regardless of the ongoing debate about the potential effects of the upcoming presidential election, a different analyst, Ali Martinez, pointed out that during the past eleven years, seven instances occurred where the top-performing cryptocurrencies experienced substantial growth.
According to the chart presented by Martinez, historically, Bitcoin has seen an impressive average increase of approximately 46% in November. If this historical trend continues, we might expect Bitcoin’s price to surpass $100,000 per coin by the end of November.
To verify a surge towards retesting its record high, Bitcoin needs to hold steady above $70,000 in the approaching days, particularly before the upcoming election. This consolidation would set it up favorably for a significant spike towards even greater prices.
Read More
Sorry. No data so far.
2024-10-29 05:47