Originally published on: October 30, 2024
Bitcoin’s recent surge might be a reflection of confidence in former President Donald Trump’s potential re-election, raising concerns about a possible post-election market reaction.
On October 29, the price of Bitcoin (BTC) surpassed $73,600, nearing its all-time high and marking the highest level since March 2024. This surge has been linked to the increasing odds of a Trump victory in the upcoming presidential election.
According to a pseudonymous crypto analyst known as “The Giver,” Bitcoin is being viewed as a potential indicator of a Trump triumph, leading to speculations about a “sell the news” scenario post-election.
The impending U.S. presidential election has become a focal point for crypto investors, with the outcome expected to have a significant impact on crypto regulations and market trends well into 2028.
The surge in Bitcoin’s price has coincided with the rising odds of a Trump victory on the decentralized predictions market, Polymarket. As the odds of a Trump win climbed above 66.3%, Bitcoin crossed the $70,000 mark on October 28.
While the correlation between Trump’s election odds and Bitcoin’s price surge is evident, it does not necessarily mean that the former is the sole driver behind the latter. Analysts suggest that there is a growing belief in an undervalued Trump victory, potentially influencing Bitcoin’s current trajectory.
Despite the bullish momentum in Bitcoin’s price, macroeconomic conditions may not be sufficient to push the crypto industry to a new all-time high. Factors like quantitative easing, involving central banks injecting liquidity into the economy by purchasing government bonds, could impact Bitcoin’s price positively by driving investors towards alternative assets.
Looking ahead, some analysts remain optimistic about Bitcoin’s post-election performance, predicting a rally to $80,000 by year-end, driven by market dynamics and the prospect of a Republican presidential victory.
As the crypto market continues to navigate through uncertain times, it’s crucial for investors to stay informed and strategically adapt to changing conditions to maximize opportunities and mitigate risks. Stay updated with our Markets Outlook newsletter for critical insights, investment opportunities, and trading strategies delivered every Monday.
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