Bitcoin It has soared more than 8% this week and is just a few dollars shy of Tuesday’s all-time high. The digital currency briefly topped $73,000 before leveling off on Wednesday. This price action comes as the cryptocurrency market reacts to the mood of the U.S. election, with many speculating that Republican presidential candidate Trump may win. Bitcoin’s upward trajectory in October – dubbed the “Uptober” by cryptocurrency traders due to its historical outperformance – has been fueled by rising prices.
Bitcoin could reach new all-time highs in the coming days as Election Day approaches, according to cryptocurrency fans. Initially rising by more than $2,000 in just a few hours, it fluctuated slightly between $71,000 and $73,000. In October alone, Bitcoin gained 12%, proving that it can sustain and become the outperforming currency of the month.
In addition to Bitcoin’s stellar performance, the overall cryptocurrency market is also expanding at a similar rate. Ethereum and Solana are up 4% and 5%, respectively, as both Ethereum and Solana receive the same enthusiasm. Notably, Dogecoin, a copycat coin often associated with Elon Musk, is up 23% this week. Musk’s support for Dogecoin at several Trump rallies has corresponded with this surge, further raising the currency’s profile and appeal.
Once the price of Bitcoin rises, there will be a huge inflow into exchange-traded funds (ETFs). Despite pre-election volatility, the ETFs invested $870 million, the third-highest amount since approval in January. This pattern shows that investors believe Bitcoin is a valuable asset, especially during difficult times. The launch of a Bitcoin ETF in March sparked a similar surge, pushing Bitcoin to its latest record high of around $73,000.
Trump’s lead drives composite market forecasts
As the election approaches, Trump leads Vice President Harris on cryptocurrency prediction platform Polymarket. According to Polymarket users, Trump currently has a 67% chance of winning, although standard surveys show the two candidates evenly matched. Recent research suggests that some activity on Polymarket may be inflated by fraudulent accounts, adding to the uncertainty of these estimates.
Source: Polymarket
Both candidates have stepped up in the final days of the campaign in an effort to sway voters who are still on the fence. Trump in particular has positioned himself as a supporter of Bitcoin. He pledged at a recent rally to turn the United States into the “cryptocurrency capital of the planet.” He spoke at a Bitcoin conference in Nashville, announcing a new cryptocurrency venture and promising to fire SEC Chairman Gary Gensler, a move that resonated with many in the crypto industry.
Elon Musk has participated in multiple events with Trump to promote Dogecoin and even mentioned a potential role in Trump’s proposed Department of Government Efficiency (humorously abbreviated as DOGE). The interesting nod to Dogecoin drew positive attention from crypto enthusiasts, bolstering Musk’s continued influence in the crypto world and strengthening Trump’s appeal to pro-crypto voters.
Vice President Harris has taken a more cautious approach to cryptocurrencies than Trump. While her stance is consistent with President Biden’s similarly moderate pro-crypto stance, her policies have not generated the same enthusiasm within the cryptocurrency community. Some analysts have speculated that a Harris victory could cause the value of Bitcoin to fall. Despite these concerns, Transform Ventures CEO Michael Terpin believes Bitcoin’s growth will continue regardless of the election outcome.
Terpin said that Bitcoin is currently in a traditional value growth cycle. He believes there is enough momentum to continue pushing Bitcoin higher. However, he added that a Trump victory could accelerate this growth, potentially pushing Bitcoin to reach higher heights faster than expected. As the election approaches, the cryptocurrency market is paying close attention to predict the impact of the political outcome on the future of the industry.
