As the U.S. presidential election approaches, Bitcoin has surged to $70,000 for the first time in over five months. This milestone coincides with former President Donald Trump leading in polls against Vice President Kamala Harris, setting the stage for potential changes in the cryptocurrency landscape depending on the election outcome.
$70,000 is a Crucial Level for Bitcoin to Surpass March's Record
Bitcoin's recent price surge has been fueled by a recovery in the stock market, as analysts note that investors are increasingly confident in Trump's chances of winning.
Tony Sycamore, a market analyst at IG Australia Pty, points out that Bitcoin needs to maintain strong upward momentum above the $70,000 mark to build confidence beyond the previous record of $73,798 set in March.
Trump has positioned himself as the pro-cryptocurrency candidate, pledging to make the U.S. the cryptocurrency capital of the world. In contrast, Harris has taken a more cautious stance, supporting a regulatory framework for the industry.
In the political landscape, options traders have ramped up bets, with many speculating that Bitcoin could reach $80,000 by the end of November, regardless of who wins the election.
Implied volatility around Election Day on November 5 has also increased, reflecting market uncertainty. Notably, U.S. spot Bitcoin ETFs have seen net inflows of around $3.1 billion this month, contributing to positive sentiment around cryptocurrency.
Concerns About Regulation Regarding Harris's Stance on Cryptocurrency
Cryptocurrency analyst VirtualBacon recently emphasized the importance of the upcoming election for the cryptocurrency market, calling it the "Cryptocurrency Election."
The market currently predicts support for Trump at 60%, although these numbers may be skewed by the historical support of the cryptocurrency community for him. National polls show the race will be much closer, with Harris leading slightly by just over 1%.
The cryptocurrency industry has contributed approximately $119 million to election campaigns this year, accounting for nearly half of the total contributions from companies.
However, major companies like Coinbase and Ripple are employing bipartisan donation strategies to advocate for supportive legislation rather than backing a single candidate.
While both Trump and Harris have publicly expressed favorable views on cryptocurrency, their commitment to specific legislative action remains uncertain.
Harris's regulatory approach raises concerns as her campaign emphasizes protecting minority investors in digital assets without providing specific information.
Furthermore, her vice presidency coincides with the appointment of prominent cryptocurrency critics like the chair of the U.S. Securities and Exchange Commission (SEC) Gary Gensler and U.S. Treasury Secretary Janet Yellen.
On the other hand, Trump's increasingly changing stance on cryptocurrency, including the launch of a successful NFT project and a DeFi platform, indicates a warming of this sector.
As the election draws near, VirtualBacon suggests it is important to consider that economic data released after the election will significantly affect market sentiment.
The upcoming meeting of the Federal Open Market Committee (FOMC) in November could provide important insights into inflation and liquidity, impacting both the market as a whole and the trajectory of cryptocurrency.
The Path of BTC to $100,000
Despite speculation around the impact of the presidential election, with only 7 days left, another analyst, Ali Martinez, notes that over the past eleven years, seven of those have seen significant growth for the leading cryptocurrency.
As can be seen in the chart provided by Martinez, the average gain of BTC in November is 46%. If the market follows these recent patterns, the price in November could exceed $100,000 per coin.
However, for the BTC to confirm the breakthrough to retest the all-time high, it is crucial that the price consolidates above the $70,000 mark in the coming days before the election, facilitating a strong breakout to even higher price levels.
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