Bitcoin, the leading cryptocurrency, made a remarkable comeback over the weekend after hitting a low of 65,590 USD last Friday night. This strong volatility was driven by a series of factors related to the global geopolitical situation and developments in US politics.
Notable Volatility of Bitcoin
Last weekend, Bitcoin unexpectedly dropped to 65,590 USD after the Wall Street Journal published a report related to Tether, the company behind the world's largest stablecoin. The information suggesting that US prosecutors had opened an investigation against Tether caused a stir in the market and created strong sell pressure.
However, this drop was short-lived as Paolo Ardoino, the CEO of Tether, quickly denied related information. Shortly after, Bitcoin recovered and surpassed the threshold of 69 thousand USD, reaching its highest level since October 20. By Monday morning, the price of Bitcoin continued to stabilize above this level, indicating the confidence and trust of investors in this digital currency.
Impact of the Geopolitical Situation
In addition to the intrinsic factors of the cryptocurrency market, the geopolitical situation also plays a significant role in Bitcoin's recovery. On Friday night, Israel conducted an airstrike on Iran; however, tensions between the two sides did not escalate after this event. This somewhat alleviated pressure on safe-haven assets like gold and bonds, while facilitating investors to pour money into riskier assets like Bitcoin.
It is also noteworthy that the United States has sent warnings to Israel to prevent any attacks on Iran's oil and nuclear infrastructures, indicating that tensions may continue to be controlled and not escalate, helping to create the necessary stability for the cryptocurrency market.
Impact from the US Political Race
Another factor supporting Bitcoin is Donald Trump's race for the White House. According to data from betting and survey sites like Polymarket, Trump is currently leading significant opponents, particularly Vice President Kamala Harris, by more than 30%. Trump's dominance has provided momentum for the financial markets in general and the cryptocurrency market in particular.
Investor sentiment appears more optimistic as the possibility of economic policies that are more friendly to cryptocurrencies will be maintained or expanded if Trump returns to the White House. In contrast to Trump, Kamala Harris seems to be struggling in interviews and rallies, causing a fair amount of negative public reaction and increasing the likelihood of failure in the race.
Conclusion
Overall, Bitcoin is being supported by a combination of positive factors, from the denial of negative rumors related to Tether to a more stable situation in the Middle East and Donald Trump's favorable position in the race for the White House. This has helped Bitcoin maintain above the threshold of 69 thousand USD and reinforced investor confidence in the growth of this cryptocurrency.
Along with Bitcoin's recovery, the cryptocurrency market in general can also expect steady growth if these supporting factors continue to be maintained. The increasing confidence of investors and positive political prospects are creating a promising environment for Bitcoin in the near future.
