Bitcoin Surges on Trump Victory Hopes
Bitcoin rallied to a two-week high on Monday, fueled by a surge in betting markets suggesting an increased chance of a Donald Trump victory in the upcoming U.S. presidential election. The world's largest cryptocurrency, bitcoin, surged by around 5% to $62,781.48 according to CoinGecko.
This rally follows the dramatic assassination attempt on the former president on Saturday. Analysts believe that Trump's favorability may rise amidst a strong economy, potentially impacting markets positively.
Investors anticipate a boost to so-called "Trump victory trades", including crypto stocks like Coinbase Global and Riot Platforms, which saw premarket gains of 4.5% and 5.25%, respectively.
Crypto Industry Expects Positive Regulation under Trump
Bitcoin's price surge over the weekend could signal investor expectations that a Trump presidency would create a more favorable regulatory climate for the crypto industry. While Trump hasn't outlined specific crypto policies, he's viewed as generally supportive of the sector, despite past skepticism. His acceptance of crypto donations and increasingly positive messaging on digital assets have positioned him against Democrats who favor tighter regulations.
Zach Pandl, head of research at Grayscale Investments, told CNBC that a second Trump term could introduce downside risks for the US Dollar in the medium-term, potentially bolstering Bitcoin's price. This aligns with analysts at Standard Chartered, who believe a Trump victory could push Bitcoin as high as $150,000 by year-end.
Crypto Market Rebounds after Slump
The crypto market has been struggling in recent months with a slowdown in capital inflows. However, Grzegorz Drozdz, market analyst at Conotoxia, sees a potential "influx of confidence in the markets" with a higher probability of a Trump presidency. This could lead to a positive impact on crypto and bitcoin in the coming weeks.
Key Takeaways
- Bitcoin rallied to a two-week high on Monday fueled by the potential of a Trump victory.
- Investors expect a more favorable regulatory environment for crypto under a Trump presidency.
- A second Trump term could lead to downside risks for the US Dollar, potentially boosting Bitcoin's price.
- The crypto market is experiencing a rebound after a recent slump in capital inflows.
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