Originally published on: October 30, 2024
Bitcoin’s recent surge might be linked to the increasing odds of Donald Trump reclaiming the presidency, setting the stage for a potential post-election market shift.
The price of Bitcoin soared past $73,600 on Oct. 29, reaching levels not seen since March 2024, just a stone’s throw away from a new all-time high.
While there seems to be a connection between Bitcoin and Trump’s electoral prospects, it doesn’t guarantee a sustained rally post-election.
Dubbed as a Trump hedge, Bitcoin serves as a barometer for a potential Trump win, as noted by the crypto analyst “The Giver.”
With the U.S. presidential elections looming on Nov. 5, crypto investors are on edge as the outcome could impact industry regulations and market trends for years to come.
The recent surge in Bitcoin’s price seems to align with Trump’s increasing odds of winning the election, as observed on Polymarket, the leading decentralized predictions market.
Although the correlation between Trump’s chances and Bitcoin’s price movement is clear, it’s not necessarily a cause-and-effect relationship. Many believe that a Trump victory is undervalued and could lead to a significant market shift.
Despite the bullish run in Bitcoin, the macroeconomic conditions are not yet ripe for the crypto industry to hit a new all-time high.
Quantitative easing, a process where central banks buy government bonds to boost economic activity, typically results in liquidity injections that drive investors to diversify into alternative assets like Bitcoin.
While there’s uncertainty surrounding Bitcoin’s future post-election, some Bitfinex analysts are optimistic, predicting a rally to $80,000 by the end of 2024, fueled by options market dynamics and the prospect of a Republican presidential win.
So, as the world awaits the election results, will a Trump victory pave the way for Bitcoin’s ascent to new heights? Stay tuned to find out.
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