2024 has seen a lot of volatility in the cryptocurrency market, especially Bitcoin. Factors like Bitcoin spot ETFs, the fourth halving event, and the US presidential election have all had a significant impact on the industry. With the election less than a month away, many analysts predict that it could affect the trend of Bitcoin.
Trump and His Impact on the Cryptocurrency Market
According to IntoTheBlock, a blockchain analytics firm, Bitcoin price has shown a correlation with former President Donald Trump's chances of winning the upcoming presidential election in November. Data from Polymarket shows that Trump has a 60% chance of becoming president in January 2025, surpassing Vice President Kamala Harris.
Trump has repeatedly expressed his support for cryptocurrencies. During his election campaign, he pledged to promote the integration and expansion of Bitcoin, and in his second term, Trump promised to create a favorable environment for the cryptocurrency market.
Several reports have also pointed out that Trump has appointed pro-crypto individuals to key positions in the US banking system. He has not only publicly criticized SEC Chairman Gary Gensler for his tough stance on cryptocurrencies, but also has personal investments in cryptocurrency companies.
Notably, in July, Trump stated that if elected, the United States would establish a âstrategic Bitcoin reserveâ instead of selling its digital assets.
Bitcoin Growth on Political Hopes
In an analysis by IntoTheBlock, the company noted that Bitcoinâs price has increased along with Trumpâs chances of winning the election. The market expects that if Trump returns to the White House, his administration will be more friendly to cryptocurrencies, in contrast to the anti-crypto stance of the Democrats. This makes investors particularly interested in the election and its impact on Bitcoin.
Bitcoin Dominance Hits Three-Year High
The recent price surge has pushed Bitcoin's market share to its highest level since early 2021, with Bitcoin's dominance reaching around 65%. This shows that investors are shifting their focus to Bitcoin amid political uncertainty and global economic factors.
Conclude
The 2024 US presidential election is becoming a key factor influencing Bitcoin prices. With the likelihood of a Trump victory increasing, expectations of a more crypto-friendly environment are also boosting the market. However, the election outcome remains uncertain and investors should prepare for the possibility of strong volatility in the coming period.
