As we approach the last two months of 2024, the BTC price is fluctuating below $70,000. Although there are many challenges to overcome to break through this psychological resistance level, BTC has the potential to break through the $70,000 mark by the end of the year, and the development of the US political situation will further affect market sentiment.
User FOMO sentiment starts, BTC spot ETF inflow increases
Under the combined influence of BlackRock's favorable financial report and macro factors, the market inflow of BTC spot ETF has continued to increase recently. According to data disclosed by Cointelegraph on the X platform, on October 17, BlackRock's BTC exchange-traded fund IBIT purchased BTC worth $311.7 million. The total inflow of IBIT this week has approached $1 billion.
Trump's chances of being elected as the 2024 US president rise, and his historical governing philosophy is good for crypto assets
Polymarket data shows that the probability of Trump being elected as the US president in 2024 has risen to 61.7%, and the probability of Vice President Harris being elected is 38.2%. If Trump is re-elected as the US president in 2025, many industries in the US economy will be significantly affected, including crypto assets such as BTC. Trump's previous term was pro-business, skeptical of the Federal Reserve, and promoted populist rhetoric, all of which provided a favorable environment for the growth of BTC. Although Trump has previously criticized crypto assets, many economic and policy trends related to his policy will benefit BTC.
Trump’s last term was known for loosening government regulations on multiple industries to boost economic growth. Trump supports the rollback of financial regulations introduced after the 2008 financial crisis. This overall stance is good for BTC and the entire crypto asset market, which sees regulation as a hindrance to innovation and growth.
BTC investors could profit if Trump continues his tax policy
Trump’s tax policy is designed to favor business and investment, with significant tax cuts for corporations and the wealthy. Under Trump’s 2017 Tax Cuts and Jobs Act, the corporate tax rate was reduced from 35% to 21%, and investors’ capital gains taxes were also cut. If his tax policy in his second term takes a similar approach again, BTC investors will benefit.
Last week, we noted that investors had not yet begun to position for a Trump victory, and since then, Bitcoin has seen a sharp 8% increase. As the odds of a Trump victory rapidly increase, it is increasingly likely that we will see a stronger return of BTC.
Some of the above opinions are from Matrix on Target. Contact us to obtain the full report of Matrix on Target.
Disclaimer: The market is risky and investment should be cautious. This article does not constitute investment advice. Digital asset trading can be extremely risky and unstable. Investment decisions should be made after carefully considering personal circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.
