Bitcoin Hits $67,000 Amid Optimism Over Potential Trump Presidency
Bitcoin surpassed $67,000 for the first time in over a month, sparking speculation that the largest cryptocurrency might soon approach record highs, according to Bloomberg. This surge comes amid optimism that a potential second Trump presidency could benefit digital assets.
Bitcoin’s price increase is a welcome development for investors who have endured its volatility. This peak highlights Bitcoin’s resilience and the growing institutional adoption driving its value. Financial giants like JP Morgan have forecasted a rebound for Bitcoin and other cryptocurrencies in the latter half of the year, starting in August 2024.
Several factors contribute to Bitcoin’s current momentum: renewed interest from major financial institutions, favorable regulatory developments, and technological advancements within the crypto ecosystem. However, the most significant factor seems to be JD Vance, Donald Trump’s pick for Vice President. Vance’s connections to Silicon Valley and pro-crypto stance are expected to favorably impact policy if the Republicans win back the White House in November from President Joe Biden.
Bitcoin’s surge of almost 6% to $67,434 on Friday also lifted the fortunes of smaller tokens such as Solana, Dogecoin, and Avalanche, which all rose more than 3%. Bitcoin reached an all-time high of nearly $74,000 in March due to optimism over demand for US exchange-traded funds that were allowed to hold the token directly for the first time.
The increased likelihood of Donald Trump presidency is driving Bitcoin and the cryptocurrency market higher, according to FRNT Financial CEO Stephane Ouellette. He believes a second Trump administration would create a more favorable regulatory environment for the crypto industry. “We’re on the precipice of another bull market cycle, similar to 2021,” said Ouellette. Bitcoin reached its previous all-time high in late 2021.
Crypto is rallying even as stocks are falling, breaking its recent correlation with other risk assets. Most groups in the S&P 500 dropped Friday, with the index having its worst week since April.
Following a failed assassination attempt against Republican nominee Donald Trump, his odds of becoming president have risen to around 63%, according to PredictIt. Simultaneously, Bitcoin’s price has jumped about 15%.
“While there is a premium for options that have election exposure, it is relatively muted since Trump is currently the runaway favorite to win,” FalconX Head of Markets Ravi Doshi told Bloomberg. “That could of course change drastically if Biden drops out of the race.”
FalconX’s derivatives desk has observed largely bullish longer-dated flows through the end of the year, Doshi added.
