Bitcoin’s recent 13% surge is grabbing attention as investors link it to expectations of a Trump win in the presidential race, where he wants to make the U.S. a global crypto hub. Bitcoin’s strong performance coincides with investments in Bitcoin ETFs and changing odds in prediction markets. Meanwhile, the U.S. SEC quickly approved 11 Bitcoin ETFs to trade options, further driving investor interest.
Bitcoin Pulls Ahead in Markets as Investors Bet on Trump Victory
Bitcoin’s recent price increase has caught the attention of investors, who see it as a potential sign that Donald Trump, who is a crypto supporter, could win the U.S. election. Cryptocurrency has become a hot topic during the election campaign. People use cryptocurrencies like Bitcoin for various purposes, including investments, international payments, and entertainment.
For example, Sergio Zammit states that cryptocurrencies are becoming a popular payment method at online casinos. This is due to the fast deposit and withdrawal times and the anonymity provided (source: https://www.business2community.com/cryptocurrency/best-bitcoin-casino-sites).
As Americans are increasingly adopting and using cryptocurrencies, there are concerns about how crypto will be regulated in the future. The outcome of the 2024 election could significantly affect how digital currencies are regulated in the U.S., potentially determining whether the country will be more supportive of cryptocurrencies or impose stricter rules that could restrict its daily use.
Trump, who has promised to turn the US into a global hub for cryptocurrency, has made Bitcoin a symbol of what some call a “Trump trade”. Over the past week, Bitcoin’s price increase outperformed global stocks and commodities such as gold.
Arisa Toyosaki, co-founder of Cega, a service for crypto derivatives, said that excitement in prediction markets is boosting Bitcoin’s price increase, along with significant investments in Bitcoin exchange-traded funds (ETFs). Since October 11, U.S. Bitcoin ETFs have received more than $1.6 billion in investments. As of Thursday morning in London, Bitcoin was trading around $67,300, close to its all-time high of $73,798 in March.
Vice President, Kamala Harris has expressed support for cryptocurrencies and digital assets. She appreciates how new technologies can broaden access to banking and financial services while emphasizing the need to protect consumers and investors. Her stance, which is seen as supportive of the crypto industry, has been met with mixed reactions. She does support a regulatory framework for cryptocurrencies, however, the details of the regulations remain unclear.
Bitcoin’s Price Surge: Key Reasons Behind the Recent Rally
Bitcoin’s recent surge, driven by the “Uptober” effect, saw its price surpass $29,900 on October 16, 2024. Several factors fuel this price increase, including growing interest from big companies looking for alternative investments in an uncertain economy. Investors feel more confident since it’s easier to buy Bitcoin through ETFs.
October has earned the nickname “Uptober” in the crypto community due to Bitcoin’s historically strong performance this month. In fact, over the past decade, it has gained over 20% on average during this month. Several factors contribute to this trend:
- Positive Momentum: Strong performance in prior months often continues into October, pushing prices higher.
- End of the Fiscal Year: October marks the final quarter, leading many institutions to revise their investment strategies, often increasing demand for Bitcoin.
- Institutional Investments: Large companies and funds tend to boost their involvement in Bitcoin towards year-end, adding buying power.
- Regulatory News: Key updates about crypto regulations often come out in October, creating optimism in the market.
- Market Psychology: The belief in “Uptober” itself creates a self-fulfilling cycle, as traders anticipate gains and buy-in.
With institutional backing and the hype surrounding October, Bitcoin’s price may continue its upward trend.
