As the U.S. presidential election approaches, Bitcoin has experienced a notable rebound, briefly reaching the $70,000 level for the first time in more than five months. This increase aligns with former President Donald Trump’s lead in polls against Vice President Kamala Harris, suggesting that the upcoming election could significantly impact the cryptocurrency market.
The surge in Bitcoin ’s value has been supported by a broader rally in the stock market, with analysts observing that many investors are positioning themselves in anticipation of a possible Trump victory. For Bitcoin to build momentum towards surpassing its previous record of $73,798 set in March, it must maintain its position above the $70,000 level.
Trump has adopted a pro-cryptocurrency stance, aiming to establish the U.S. as a global hub for digital currencies. In contrast, Harris has advocated for a more cautious regulatory approach to the industry. Amid this political backdrop, options traders have increased their bets on Bitcoin , with projections suggesting the cryptocurrency might reach $80,000 by the end of November, regardless of the election’s outcome.
With Election Day on November 5, market uncertainty has led to increased implied volatility. Spot Bitcoin exchange-traded funds (ETFs) in the U.S. have also seen over $3.1 billion in net inflows this month, indicating a positive shift in sentiment toward cryptocurrencies.
The election is being labeled the “Crypto Election,” with substantial contributions from the crypto industry to various campaigns. Although Trump currently enjoys about a 60% favorability in prediction markets, national polling reveals a tighter contest, with Harris narrowly leading by just over 1%. Major industry players are adopting a bipartisan approach in their donations, focusing on promoting legislation that fosters a supportive environment for cryptocurrency.
While both candidates have expressed favorable views on cryptocurrencies, questions remain about their commitments to concrete regulatory actions. Harris’s emphasis on investor protection without specific proposals and her association with prominent critics of the industry raise concerns. Conversely, Trump’s recent ventures into NFTs and decentralized finance suggest an evolving perspective on the sector.
As the election nears, market analysts stress the importance of economic data released afterward, which could significantly influence market trends. Additionally, the upcoming Federal Open Market Committee meeting may provide insights into inflation and liquidity, impacting both the stock market and the cryptocurrency landscape.
Despite the political uncertainty, historical trends reveal that November has historically been a strong month for Bitcoin , with the average gain around 46%. If Bitcoin can solidify its position above the $70,000 benchmark in the days leading up to the election, it could set the stage for potential new highs in the near future.
