Bitcoin is moving almost in sync with the political drama around the U.S. presidential election. Every time the odds shift between Donald Trump and Kamala Harris, BTC seems to respond. Just days ago, BTC was riding high, nearly reaching its all-time high of $73,700, with Trump’s odds looking strong. Crypto fans noticed this and even joked that Bitcoin’s price action mirrors Trump’s polling chances.
As Trump’s odds dropped, so did Bitcoin, sliding below $68,000. Even as BTC bounces back slightly, its movements are super sensitive to every twist in the U.S. election scene. Crypto analysts, like Miles Deutscher, are pointing out the “crazy” connection. It’s not a perfect mirror, but it’s close enough to grab everyone’s attention.
It’s crazy how correlated #Bitcoin price action is to Trump’s election odds.
Maybe it really is as simple as: • Trump win = $BTC pump • Kamala win = $BTC dump pic.twitter.com/8h8sUzJ0U6
— Miles Deutscher (@milesdeutscher) November 3, 2024
Will Bitcoin Ride Trump’s Pro-Crypto Promises?
Donald Trump is making a bold pitch to the crypto crowd. He’s promised to support Bitcoin by slashing red tape and boosting U.S.-based Bitcoin mining. He’s even talked about creating a strategic Bitcoin reserve, aiming to have the U.S. hold all the BTC it possesses from seizures. That would be a first—Bitcoin as a part of national assets!
But it’s not all clear skies. Trump’s plan to make Bitcoin “Made in the USA” faces pushback due to Bitcoin’s decentralized nature. Mining all BTC in one country just isn’t feasible. Even if he can’t make it happen entirely, Trump’s ideas have already sparked conversations about what Bitcoin-friendly policies could look like under his watch.
Bitcoin Liquidation Spikes Amid Election Uncertainty
Bitcoin has been struggling with volatility, not only from the election but also from a recent surge in liquidations. The price slipped below $68,000, wiping out $200 million in long positions. Traders had high hopes BTC would continue its climb, but the sudden drop triggered a wave of liquidations, leading analysts to predict more pullbacks.
Despite the rough patch, some traders see this dip as a temporary “local bottom” around $66,000. The upcoming election week is expected to fuel even more price action. With high stakes and heightened interest, BTC could be in for a bumpy ride, especially as election jitters shake up the market.
Trump’s Bitcoin Reserves Plan: Bold Move or Campaign Hype?
One of Trump’s big promises is to create a U.S. strategic Bitcoin reserve, drawing a lot of interest from the crypto community. The idea? To hold 1 million BTC over five years to hedge against the national debt. Senator Cynthia Lummis backs the concept, even proposing legislation to set it in motion. If this happens, the U.S. could become a serious player in BTC holdings.
However, this isn’t just a campaign line. Legal and logistical hurdles exist since much of the Bitcoin in the government’s hands is tied up in ongoing legal issues. Even so, Trump’s promise has sparked new enthusiasm among crypto fans. Whether this reserve comes to pass or not, it’s a big signal that Bitcoin is becoming a core part of U.S. political conversation.
BTC Traders Brace for Election Week Volatility
As the election approaches, Bitcoin traders are bracing for what could be a volatile week. Both Trump’s promises to fire SEC Chair Gary Gensler and his stance against a U.S. CBDC (Central Bank Digital Currency) have added fuel to Bitcoin’s election-linked price swings. If Trump wins, crypto markets could see a short-term boost. On the other hand, if Harris gains ground, Bitcoin might face more downward pressure.
This political push-pull has traders eyeing “bounce zones” to capitalize on potential price moves. Analysts suggest BTC needs to hold key levels, especially in the high $60,000s, to avoid deeper corrections. For now, all eyes are on the election, the odds, and how closely Bitcoin’s moves continue to mirror the political stakes in the U.S.
