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Bitcoin hit a two-week high on Monday as betting markets suggested crypto-friendly candidate Donald Trump’s chances of victory in the U.S. presidential election increased.
The value of Bitcoin, the world’s largest cryptocurrency, was up about 5% to $62,781.48 as of 1:40 p.m. London time, according to CoinGecko.
assembly Following the dramatic failure of the assassination attempt on the former president Trump on Saturday.
“This is ‘similar’ to 1981 when President Ronald Reagan was shot,” even though that was not an election year, Ben Emons, chief investment officer at FedWatch Advisors, said in an email.
“After the incident, Reagan’s approval rating soared in a double-dip recession. But the S&P 500 fell 9% due to the economic downturn. But in the current strong economy, former President Trump’s favorability rating may It will soar and have a positive impact on the market.”
Investors said over the weekend they expected the so-called “Trump victory trade” to get a boost. These trades expanded to include various cryptocurrency stocks such as Coinbase Global and miners Anti-riot platformup 4.5% and 5.25% respectively in pre-market trading.
Zach Pandl, director of research at Grayscale Investments, told CNBC via email: “Bitcoin prices rose about 9% over the weekend, which may indicate that investors expect President Trump to create a more favorable regulatory environment for the cryptocurrency industry.
Trump has yet to make any detailed proposals for cryptocurrency regulation, but the Republican candidate is now seen as broadly supportive of the industry — despite his past skepticism. He will speak at a major annual Bitcoin conference later this month.
The Trump campaign began accepting donations from the cryptocurrency industry in May, and his messaging on the future of such digital assets has become increasingly positive. He has also sought to position himself against Democrats who support reining in the industry, such as Sen. Elizabeth Warren.
Bitcoin.
“In addition, macro policy changes during Trump’s second term as president—including continued deficit spending, declining U.S. leadership in international affairs, diminished Fed independence, and a desire for a weaker currency to help shrink the trade deficit— There are medium-term risks to the dollar that could pose downside risks.
Last month, Standard Chartered analysts said that the U.S. presidential election is the next key catalyst for Bitcoin prices, and that Trump’s victory could push Bitcoin prices to $150,000 by the end of the year.
“Cryptocurrencies have not had it easy in recent months. We are currently in the midst of a downturn in previously booming capital inflow markets, as measured by stablecoin capitalization, which has increased over the past two years. It’s already frozen mid-month,” said market analyst Grzegorz Drozdz. Conotoxia told CNBC via email.
As the likelihood of a Trump presidential election increases and the likelihood of unrest and instability in the United States decreases, Drozdz now believes a potential “influx of market confidence” could have a positive impact on cryptocurrencies and Bitcoin in the coming weeks. positive influence.
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