Donald Trump's chances of winning the presidential election, combined with historically bullish market conditions, could create a "perfect storm" of price action that could push Bitcoin to new record highs next month, analysts from cryptocurrency exchange Bitfinex said.
“The convergence of election uncertainty, the ‘Trump deal’ narrative, and favorable Q4 seasonality creates the perfect storm for Bitcoin, promising an exciting period ahead despite the noisy price movements leading up to the election in two weeks.”
In an October 28 market report, Bitfinex analysts said that although Bitcoin (BTC) saw excessive volatility due to geopolitical instability in the Middle East and other macroeconomic issues in the United States, anticipation of a potential Trump victory in the November 5 election has caused its price to recover strongly.
At the time of publication, Bitcoin was trading at $71,086, up 4.9% over the past 24 hours, according to CoinGecko data, its highest level in nearly five months.
At current prices, Bitcoin needs just 3.4% more to retake its all-time high of $73,700 reached in March of this year.
Explaining Bitcoin's recent strength, analysts noted the growing "Trump trade" narrative, saying the correlation between bullish price action for the cryptocurrency market and Trump's victory on November 5 has increased significantly.
Trump currently leads Kamala Harris by 30% on decentralized betting platform Polymarket, while Harris leads Trump by 1.5% in national polls, according to 583 Polling data.
Bitcoin’s bullish move comes amid record-breaking open interest, which hit an all-time high of $41.7 billion on October 29, reflecting strong demand for leveraged trading in the asset, according to CoinGlass data.
Bitifnex analysts also noted a steady increase in BTC call options in late December. Combined with record open interest, they said the market is showing signs of preparing for a “post-election bull run” that could push Bitcoin past its all-time high of $73,800 after the election.