Bitcoin surged over 8% this week, coming within just a few dollars of its all-time high on Tuesday. The digital currency briefly pushed past $73,000 before leveling out on Wednesday. This price movement arrives as the crypto market reacts to the U.S. election climate, where many speculate a potential win for Republican presidential candidate Donald Trump. Bitcoin’s October upward trajectory, which crypto traders call “Uptober” due to its historically excellent performance, is boosted by this price growth.
According to crypto fans, Bitcoin could reach a record high in the coming days as Election Day approaches. After initially increasing by over $2,000 in a few short hours, there were minor swings among $71,000 and $73,000. In October alone, Bitcoin has risen 12%, proving that it can endure and establishing itself as a noteworthy performer for the month.
In addition to Bitcoin’s remarkable performance, the entire crypto market is expanding at a comparable rate. As they both ride the same wave of enthusiasm, Ethereum and Solana saw increases of 4% and 5%, respectively. Notably, this week saw a stunning 23% increase in Dogecoin, a parody coin commonly linked to Elon Musk. Musk’s endorsement of Dogecoin at several Trump rallies corresponds with this surge, which raises the coin’s profile and appeal even further.
There were large inflows into exchange-traded funds (ETFs) once the price of Bitcoin increased. Despite the pre-election volatility, these ETFs invested $870 million, the third-highest amount since they were approved in January. This pattern shows that investors believe Bitcoin is a valuable asset, especially in hard times. The introduction of Bitcoin ETFs in March caused a comparable surge, which contributed to Bitcoin reaching its most recent record high of about $73,000.
Trump’s Lead Boosts Polymarket Predictions
As the election draws closer, Trump is seeing a lead over Vice President Harris on Polymarket, a crypto prediction platform. Trump currently has a 67% likelihood of winning, according to polymarket users, even though standard surveys show the two candidates tied. Recent studies indicate that part of the activity on Polymarket may be inflated by fraudulent accounts, adding to the uncertainty surrounding these estimates.
Source: Polymarket
In an attempt to sway voters who are still on the fence, both candidates are increasing their efforts in the last days of the campaign. Trump in particular has positioned himself as a proponent of Bitcoin. He promised at a recent rally to turn the United States into “the crypto capital of the planet.” He has spoken at the Bitcoin conference in Nashville, announced a new crypto venture, and pledged to fire SEC chair Gary Gensler—a move that has resonated with many in the crypto industry.
Elon Musk has joined Trump at several events, promoting Dogecoin and even referencing a potential role in Trump’s proposed Department of Government Efficiency, humorously abbreviated as D.O.G.E. This playful nod to Dogecoin has drawn positive attention from crypto enthusiasts, strengthening Musk’s ongoing influence within the crypto world and bolstering Trump’s appeal to pro-crypto voters.
In contrast to Trump, Vice President Harris has taken a more cautious approach to crypto. While her stance aligns with a tempered pro-crypto position similar to President Biden’s, her policies have not generated the same enthusiasm within the crypto community. Some analysts speculate that a Harris victory might lead to a drop in Bitcoin’s value. Despite these concerns, Michael Terpin, CEO of Transform Ventures, believes Bitcoin’s growth will persist regardless of the election outcome.
According to Terpin, Bitcoin is currently in a cycle where its value traditionally increases. He believes there is enough momentum to keep pushing Bitcoin upward. However, he added that Trump’s win could accelerate this growth, potentially driving Bitcoin to even greater heights faster than expected. As the election nears, the crypto market is watching closely, anticipating the impact of political outcomes on the sector’s future.
