Despite the sluggish overnight spot price of Bitcoin, institutional investors have shown strong interest in call options with a strike price of up to $100,000 for Bitcoin in December 2024. This reflects the market's growing confidence in Bitcoin's sharp rise by the end of the year, especially as the probability of Trump's victory increases.

The move could be a sign that investors appear to be betting that a Trump victory will bring positive changes to the cryptocurrency market.

Institutional investors are interested in Bitcoin

QCP Capital's latest report points out that despite the continued impact of Mt. Gox's bitcoin supply and market price volatility, Bitcoin's market performance remains rock solid. This resilient price trend suggests that the market has adapted and overcome the earlier anxiety.

Currently, Bitcoin’s permanent funding rate has returned to stability, market volatility has decreased, and the price has returned to the familiar trading range of $61,000 to $71,000. Bitcoin has remained within this range for most of the second quarter, and this trend is expected to continue in the short term, especially considering the upcoming $67,000 strike price on July 26, and the long position in the market. With.

As the US election approaches, the market's expectations for a sharp rise in Bitcoin prices before the end of the year are growing stronger. In particular, institutional investors' strong interest in December $100,000 call options not only shows their firm confidence in Bitcoin's rebound before the end of the year, but is also related to the increased probability of Trump's victory.

Trump's recent surge in support among the tech community is partly due to his running mate, Ohio Senator JD Vance, who is also an active advocate of Bitcoin and other cryptocurrencies. Trump's new stance on cryptocurrencies has won support from tech heavyweights including Elon Musk, the Winklevoss brothers, and partners at the Silicon Valley venture capital firm Andreessen Horowitz.

Although the Biden administration has shown an open attitude towards the approval of the spot Ethereum ETF, Trump is more favored by the market for his friendly stance on cryptocurrencies. Standard Chartered Bank's forecast even points out that if Trump wins the election, the price of Bitcoin is expected to soar to $150,000.

At the same time, Biden's health and campaign prospects have been concerned by party members. He mentioned in an interview that health issues may affect his decision on whether to continue to run. The survey results of the Associated Press-NORC Public Affairs Research Center also showed that most Democrats believe Biden should withdraw from the campaign and make way for other candidates.

The impact of Biden’s election on the crypto industry

As the cryptocurrency community’s support for Trump grows, one phenomenon that cannot be ignored is that people are paying more and more attention to the impact of different political leadership on the future of the cryptocurrency industry.

Ethereum co-founder Vitalik Buterin recently issued a warning, reminding voters to be extremely careful when supporting politicians who claim to advocate for digital assets but may not deeply understand their technical basis and goals. Buterin did not name any names in his post, but the statement was still strongly refuted by Charles Hoskinson, the founder of Cardano. Hoskinson strongly disagreed with Buterin's views and predicted that if Biden continues to govern, it may have a catastrophic impact on the cryptocurrency industry in the United States.

This debate reflects the uncertainty and anxiety within the cryptocurrency industry about future policy directions. It also reflects that as the political winds change, industry leaders and participants are seeking clear direction to ensure that their innovations and businesses can survive and thrive in the changing regulatory environment.

Conclusion

As the political situation changes, the cryptocurrency market stands at a new crossroads. Investors' confidence in the future of Bitcoin seems to be closely linked to the policy changes that Trump may bring. However, true stability and growth depend not only on the political direction, but also on the industry's unremitting pursuit of innovation and active adaptation to the regulatory environment.

The cryptocurrency industry needs to find opportunities amid policy uncertainties and build a more solid market foundation through technological innovation and compliance development. At the same time, investors and industry leaders need to maintain keen insight, adapt to policy changes, and strive to build a more robust and compliant cryptocurrency ecosystem.