Originally published on: October 16, 2024
Bitcoin has reached a more than two-and-a-half-month high, with its price surge coinciding with former President Donald Trump’s increasing odds of winning the election. The price of Bitcoin climbed nearly 10% over the past week, crossing $68,200 for the first time since July, based on data from Cointelegraph.
The rally in Bitcoin’s price followed Trump taking the lead over Vice President Kamala Harris on a decentralized predictions market. Trump’s chances of winning the election stood at 60.2%, while Harris trailed at 39.8% according to data from Polymarket.
Investors speculate that Trump, considered more innovation-friendly towards crypto, could be better for the industry compared to Harris, who may impose stricter regulations. Economist Peter Schiff, however, dismissed the current rally as a “meaningless, Trump-inspired” surge.
Since Trump’s lead began, Bitcoin’s price has risen more than 13% from its monthly low on October 10. Industry experts like Thomas Fahrer from Apollo believe there is a clear correlation between Trump’s election odds and Bitcoin’s price movements.
The Crypto Fear & Greed Index, which recently shifted from “fear” to “neutral,” also reflects a shift in sentiment among investors towards “greed” as Trump’s lead widened. This multifactorial measure of market sentiment indicates increasing confidence in the crypto market.
As the election approaches, the relationship between political events and cryptocurrency prices remains a topic of keen interest among investors. Stay updated on the latest developments in the world of finance by subscribing to our Finance Redefined newsletter for exclusive insights and analysis delivered weekly. Join us in navigating the complex world of DeFi and making informed financial decisions with confidence.
