Bitcoin Soars to New Highs, Trump Effect Fueling Market Sentiment?Bitcoin's price has surged in recent days, approaching its all-time high of $74,000 set in March. On Tuesday, Bitcoin reached $73,564 in New York trading, though it pulled back below $73,000 in early Asian trading on Wednesday, it remains on a strong upward trajectory
Bitcoin Soars to New Highs, Trump Effect Fueling Market Sentiment?
Bitcoin's price has surged in recent days, approaching its all-time high of $74,000 set in March. On Tuesday, Bitcoin reached $73,564 in New York trading, though it pulled back below $73,000 in early Asian trading on Wednesday, it remains on a strong upward trajectory. This surge has also boosted other cryptocurrencies like Ethereum and Dogecoin.
Market analyses widely attribute Bitcoin's rise to Trump's campaign and his positive stance on cryptocurrencies. Data from the prominent prediction website Polymarket shows Trump currently leading Vice President Harris by a significant margin in the presidential election, while polls suggest a closer race. Tony Sycamore, market analyst at IG Australia Pty, believes the market is digesting the expectation of a Trump victory, and Bitcoin needs to break through $70,000 consistently to have confidence in surpassing its March high.
Trump has repeatedly expressed enthusiasm for cryptocurrencies, even pledging to make the US a global cryptocurrency center. Conversely, Harris's stance has been more cautious, advocating for regulation of the industry. Both candidates mark a stark contrast to the cryptocurrency crackdown under the current President Biden.
Notably, Trump has also indicated his intention to invite billionaire Elon Musk to lead a "Department of Government Efficiency," the acronym of which aligns with Musk's supported virtual currency DOGE. This news has also positively influenced market sentiment.
Glen Goodman, author of "The Crypto Trader," points out that Bitcoin's recent surge is driven by global liquidity and market predictions of a Trump victory in the US election. Arisa Toyosaki, co-founder of cryptocurrency derivatives provider Cega, notes that Musk's support for the Trump campaign has boosted trader sentiment. Options traders have ramped up bets that Bitcoin will reach $80,000 by the end of November, regardless of who wins the election.
It is noteworthy that implied volatility is elevated ahead of and following the US election. Spot Bitcoin ETFs in the US have attracted net inflows of roughly $3.6 billion this month, indicating continued investor interest in cryptocurrencies.
In conclusion, Bitcoin's recent surge is closely tied to Trump's campaign and his interactions with Musk. The market seems optimistic about a Trump victory and believes he will adopt a more favorable policy toward the cryptocurrency industry. Nevertheless, Bitcoin's future price trajectory will depend on multiple factors, including the election outcome, regulatory policy, and market sentiment.
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