Bitcoin's rise to $70,000 accelerated on Monday morning in Asia, with the price hitting $69,450 before falling back. Media sources have noted that the upcoming U.S. presidential election is likely to impact the cryptocurrency market in the coming weeks. Min Jung of Presto Research commented on this, saying, "The $70,000 mark is a very important psychological barrier, as it is close to the actual high of Bitcoin." In January of this year, Bitcoin surpassed $73,700 as its all-time high.
Poll Concerns Push Bitcoin Price Higher
As the US presidential election is scheduled for November 5, market analysts are closely monitoring the consequences for the cryptocurrency sector. It is believed that the final decision in the election will have a major impact on the market, especially on the price of Bitcoin.
According to David Lawant, Head of Research at FalconX, the role of politics in crypto is expanding. Lawant added that âCryptocurrency has entered the center of U.S. political discourse for the first time,â emphasizing that digital assets are no longer a joke.
The current Bitcoin price boom can also be attributed to growing investor optimism about a Republican victory. Former US President Donald Trump, a frequent supporter of Bitcoin and other cryptocurrencies, is slowly making a comeback in the polls, with some political scientists predicting relative success. Trump is a proponent of the liberalization of digital assets, which could be conducive to greater BTC adoption.
A poll from Ethereum platform Polymarket shows Trump winning over Kamala Harris with 21%, or a 60% chance of winning. However, FiveThirtyEight's regular polling results show Harris with 48.2%, although the percentage gap between the two has been steadily decreasing in recent weeks.
The Impact of Trump's Cryptocurrency Stance
If Trump wins, his administration will likely introduce policies that are friendly to the price of Bitcoin and other cryptocurrency markets. Indeed, Trump has advocated for decentralized finance, or DeFi, Bitcoin mining, and non-fungible tokens, or NFTs. For these policies to create the right environment for Bitcoinâs price to grow, they must be implemented in conjunction with a Republican-controlled Congress.
âThe best-case scenario for crypto would be a Trump victory with the House and Senate under Republican control, thus making it more likely that the digital asset reform agendas supported by Trump and Vance would have a reasonable prospect of becoming law.â
However, the political landscape is still unclear and the outcome could swing either way. With Kamala Harris as Democratic leader, her victory brings a different regulatory agenda, favoring greater oversight and regulatory action for the digital asset industry. While Harris has expressed some favorable stances regarding cryptocurrencies, her administration is likely to emphasize consumer protectionism and even increase regulatory rigor. Still, Bitcoin traders are pushing the cryptocurrency to $70,000 in anticipation of the election or a volatile market environment.
Bitcoin's Dynamics Amid Economic Decisions
In addition to the presidential election, another important event is coming up soon: the US Federal Open Market Committee (FOMC) meeting. According to the FedWatch Tool developed by CME Group, the meeting has a 94.4% chance of resulting in a 25 basis point interest rate cut, which could follow Bitcoin price movements.
Experts believe that Bitcoin needs to return to above $70,000 â and to achieve this, Quantstudio cites the forecast that a dovish move by the Federal Reserve, especially amid political developments, would help the BTC market. For example, Min Jung of Presto Research said, âIf Trump continues and the Fed shows signs of being less aggressive, we could see a Bitcoin rally in the weeks following these incidents.â
The volatile cryptocurrency market is influenced by many factors including the US presidential election and the FOMC meeting. As we approach the election, which is a few weeks away, Bitcoin's main valuation is still likely to depend on political and macroeconomic factors.
Conclusion: The Road Ahead for Bitcoin
As the United States prepares for the presidential election, Bitcoinâs move toward $70,000 is not only interesting for investors. Considering that political outcomes are increasingly important in market sentiment, the coming weeks could determine the future fate of Bitcoinâs price. Whether or not the cryptocurrency hits $70,000 largely depends on the election results and the decisions made by the Federal Reserve.
