Bitcoin Climbs as Trump's Winning Odds Increase: Is $80K Target Really Possible?
As the U.S. election gets closer, Bitcoin climbed above $70,000 on Monday.
According to Coindesk data, the price of Bitcoin is currently up 1.57% at $70,996.17, and the election outcome is widely seen as a key catalyst for the future rise in Bitcoin prices.
The last time Bitcoin touched $70,000 was in June this year. Last week, Bitcoin soared close to $70,000 but ultimately failed to reach this threshold. In March of this year, the cryptocurrency hit a record high of $73,797.68.
Meanwhile, data shows that so far this month, U.S. Bitcoin spot ETFs have attracted about $3.1 billion in net inflows.
With just about a week before the U.S. election, investor optimism about cryptocurrencies is growing. For months, Bitcoin prices have been confined to a range between $55,000 and $70,000. However, with the U.S. stock market hitting new highs this month, the election on November 5th, and the Federal Reserve's interest rate decision on November 7th approaches, Bitcoin prices are expected to break through.
Bitcoin is considered by some as the so-called Trump trade. The Republican candidate and former President Donald Trump has been courting the cryptocurrency industry this year, positioning himself as a pro-cryptocurrency candidate, vowing to make America the global capital of cryptocurrencies.
The Democratic candidate, Vice President Kamala Harris, is more cautious about cryptocurrencies, promising to support a regulatory framework for them. There is a split in the industry on how her presidency would affect cryptocurrencies.
However, both Trump's and Harris's positions stand in stark contrast to the Biden administration's crackdown on the cryptocurrency industry.
Although polls show Trump and Harris are neck and neck, the odds on major betting websites favor Trump to win next month. As of now, Polymarket gives Trump a 66.3% chance of winning the U.S. election, while Harris has 33.8%.
Tony Sycamore, a market analyst at IG Australia Pty, wrote in a report that Bitcoin has been boosted by the overnight stock market rebound and continues to price in a Trump election win. He added that Bitcoin needs to sustainably break through $70,000 to strengthen confidence that it can break the record of $73,798 set in March.
Options traders have also been increasing their bets: regardless of who wins the U.S. election, Bitcoin is expected to reach a record high of $80,000 by the end of November.
Stocks linked to cryptocurrency prices showed little change in after-hours trading on the U.S. stock market on Monday. During regular trading on the same day, cryptocurrency trading platform Coinbase rose by 5%, and Bitcoin whale MicroStrategy rose by nearly 9%.
Investors are also closely watching the earnings reports scheduled for release on Wednesday by Coinbase and MicroStrategy. On Monday, MicroStrategy, which has placed a big bet on Bitcoin, reached its highest closing price since March 15, 2000.
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