In this case, crypto markets support Donald Trump's side as investors believe in his disposition towards Bitcoin.
Bitcoin recently has increased in value by 4% due to Donald Trump's potential victory and positive attitude toward cryptocurrencies.
With more regulatory guidance, especially on Bitcoin ETFs, institutional investors are becoming more favorable towards Bitcoin.
As anticipation for the 2024 US presidential election builds, there is a disconnect between opinion polls and the betting market. Kamala Harris, a potential Democratic nominee, holds a slight lead over former President Donald Trump at the national level.Still, crypto traders seem to have faith that Trump will clip. This market sentiment is quite apparent in the current heightened Bitcoin price by 4% due to the increasing anticipation of Trump's comeback into the White House.
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There are massive disparities between poll results and market action. The latest FiveThirtyEight poll shows that nationally, Harris is ahead of Trump by 3.4%. On the other hand, in a famous crypto-based prediction market known as Polymarket, Trump has been given a 52% chance of an outright win. Based on market sentiment analysis, one can capture Trump's confidence through his support for pro-market policies, such as a corporate income tax rate of 15% and a positive stance towards Bitcoin.
Trump’s Pro-Bitcoin Stance
In general, Trump's policy proposal has received positive sentiment from the cryptocurrency community. Particularly regarding the protection of Bitcoin and the creation of a strategic national reserve. These statements have created expectations among investors who hope that Trump may bring in a more friendly regulatory regime for digital assets.
This optimism was further compounded by other speculations that independent presidential contender Robert F. Kennedy Jr. was reportedly planning to accept Trump's presidency.This gives Trump a further boost in the Bitcoin fraternity and, as a result, its market value.
Impact on Bitcoin’s Future
As global economic conditions remain unstable, it has been noted that Bitcoin price is staying afloat, primarily due to opinion makers who believe that Trump’s second term means an even more significant potential for the growth of cryptocurrencies. While Bitcoin had dipped to as low as $50,000 earlier in the month, it has since recovered, and some have speculated that further rate cuts from the Federal Reserve may only add to Bitcoin’s status as an inflation hedge.Skybridge Capital’s co-founder Anthony Scaramucci still believes in the growth of Bitcoin and expects it to reach $100k, but not as fast as before. He noted that growth from institutional adoption is driving the future development of BTC and partly attributed this to regulation surrounding BTC ETFs.
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