Summary:
Bitcoin surged over 8% this week, nearing its record high.
Predictions suggest Bitcoin could reach a new all-time high before the election.
The broader crypto market is following suit, with Ethereum and Solana also seeing gains.
Significant inflows into Bitcoin ETFs coincide with price increases.
Trump's rising support correlates with Bitcoin's current momentum.
Bitcoin's Recent Surge
Bitcoin has surged over 8% this week, coming close to its record high, reaching over $73,000 before slightly paring gains. This rally coincides with the anticipation of a potential win for Republican presidential candidate Donald Trump.
Predictions of New Heights
Crypto enthusiasts are optimistic, predicting that Bitcoin could achieve a new all-time high in the days leading up to the election. After a swift increase of over $2,000 in just a few hours, Bitcoin's price has been fluctuating between $71,000 and $73,000. Notably, Bitcoin has experienced a 12% increase throughout “Uptober,” a month historically favorable for the cryptocurrency.
Broader Market Trends
The overall crypto market mirrors Bitcoin's trend, with Ethereum and Solana rising 4% and 5%, respectively. Dogecoin, famously associated with Elon Musk, has surged 23%, bolstered by Musk's mentions of the coin at Trump rallies.
ETF Inflows
Spot Bitcoin exchange-traded funds (ETFs) saw significant inflows, totaling $870 million, coinciding with Bitcoin's price bump. This marks the third-largest inflow since the ETFs' approval in January, following Bitcoin's previous all-time high in March.
Election Dynamics
As the election approaches, Trump's lead against Vice President Harris has widened according to Polymarket, a crypto prediction market. With less than a week until the election, bettors give Trump a 67% chance of winning, while traditional polls show a more tied race. However, some trading activity on Polymarket has raised concerns of being manipulated.
Candidates' Campaigns
Both candidates are in the final stretch of their campaigns, with Trump emphasizing crypto support, promising to make America the crypto capital of the planet. He has launched his own crypto venture and has made significant pledges regarding the cryptocurrency industry.
Future Outlook
While Harris has adopted a more moderate pro-crypto stance than President Biden, some analysts warn of a potential Bitcoin crash should she win. Nevertheless, Michael Terpin, CEO of Transform Ventures, believes the currency will continue to grow regardless of the election outcome, citing current momentum.
“There’s just too much momentum right now,” Terpin stated. “We’re at the point of the cycle where it usually does go up quite a bit.”
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