Bitcoin Surpasses $67,000 Amid Speculation of Trump Presidency
Bitcoin hit $67,000, reigniting concerns that the largest cryptocurrency may soon make another surge.
Bitcoin surpassed $67,000 for the first time in more than a month, reviving speculation that the largest Cryptocurrency may soon make another run at record highs amid optimism that a second Trump presidency will benefit digital assets.
The surge of almost 6% to $67,434 on Friday by the crypto market’s bellwether helped lift the fortunes of smaller tokens such as Solana, Dogecoin, and Avalanche, which were all up more than 3%.
Historical Context of Bitcoin Performance:
Bitcoin reached an all-time high of almost $74,000 in March amid optimism over demand for US exchange-traded funds allowed to hold the token directly for the first time.
The increased likelihood of Republican nominee Donald Trump becoming president is driving Bitcoin and the rest of the cryptocurrency market higher, according to FRNT Financial Chief Executive Officer Stephane Ouellette.
He said That if elected again, a second Trump administration would create a much 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.
Divergence from Traditional Markets:
Crypto is rallying even as stocks fall, eroding the sector’s recent correlation with other so-called risk assets. Most groups in the S&P 500 dropped Friday, with the gauge having its worst week since April.
In the days following a failed assassination attempt against Republican nominee Donald Trump, the odds of him becoming president have risen to around 63%, according to PredictIt. At about the same time, the price of Bitcoin has jumped around 15%.
Influence of Political Developments on Crypto:
Ouellette also believes JD Vance’s selection as the Republican vice presidential candidate is a tailwind for crypto. Vance’s ties to Silicon Valley and pro-crypto views will favorably impact policy if the Republicans win back the White House from President Joe Biden in November.
“While there is a premium for options with election exposure, it is relatively muted since Trump is currently the runaway favorite to win,” said FalconX Head of Markets Ravi Doshi. “That could, of course, change drastically if Biden drops out of the race.”
Doshi said that FalconX’s derivatives desk has seen largely bullish longer-dated flows through the end of the year.
