Key Points
- Bitcoin surged to a three-month high as “Trump trades” gained momentum ahead of the U.S. election.
- Donald Trump’s rising odds in the election are viewed as favorable for the cryptocurrency market.
Bitcoin recently experienced a significant surge, reaching a three-month high. This increase in trading activity is attributed to the so-called “Trump trades” gaining momentum.
Early trading on October 21st saw Bitcoin (BTC) reach $68,496.98. This reflects a more than 6% increase over the past week and over 8% in the last month.
Trump’s Rising Odds and Impact on Crypto Market
Polymarket data indicates that Donald Trump is currently leading with 61.1% of projected votes. This has led to markets focusing on corporate earnings and election risks.
Trump’s administration is seen as more lenient on cryptocurrency regulation, and his policies are viewed as inflationary. This could potentially boost the dollar and benefit the cryptocurrency market.
Expert Opinions
Chris Weston, head of research at Australian broker Pepperstone, commented that investors might face rising expenses when hedging against dollar volatility and other portfolio-related risks.
Brad Bechtel, global head of FX at Jefferies, added that increasing real interest rates were providing support to the dollar, especially against three key currencies.
Alex Thorn, Head of Firmwide Research at Galaxy Digital, recently assessed the cryptocurrency stances of presidential candidates Kamala Harris and Donald Trump. He found that Donald Trump outperformed Kamala Harris in seven out of nine core points assessed.
With the U.S. presidential election approaching, it will be interesting to observe how the crypto market responds.