Cryptocurrency market participants are increasingly buying Bitcoin.
Cryptocurrency analysts say that whenever market sentiment leans towards a greater likelihood of Donald Trump winning the U.S. presidential election.
Bitfinex analysts wrote in a market report seen by Cointelegraph on October 21: 'More and more people speculate that there is a correlation between Bitcoin's price movements and Donald Trump's chances of being elected.'
However, FalconX research director David Lawant told Bloomberg on October 22 that Bitcoin 'could perform well regardless of the election outcome.'
Bitcoin rising to $69,000 may be driven by the chances of Trump's victory.
Previously, Cointelegraph reported that prediction markets like Kalshi and Polymarket have shifted to support Trump, with his winning probability rising to around 60%.
Analysts say: 'Risk assets are ready to price in the uncertainty (or certainty) related to the U.S. election, as well as the corresponding beta assets related to each candidate's chances of winning.'
They further pointed out that Bitcoin soaring above $69,000 could also be 'driven by speculation about Trump's potential victory.'
Currently, the trading price of Bitcoin is $68,152, and cryptocurrency analyst Axel Adler stated that almost all Bitcoin supply is in profit now.
Meanwhile, the market is not only focused on Trump's overall bullish sentiment towards the asset but is also closely watching his interest in legal reforms and regulatory changes that could affect the crypto market.
'Since Donald Trump publicly stated potential reforms within the U.S. Securities and Exchange Commission and the broader outlook for the cryptocurrency market (including tax policies that could affect cryptocurrency participants), this connection has intensified.'
It is worth noting that while Bitcoin maintains a 'consistent correlation' with the 'Republican victory probability,' other markets like stocks show 'uncertain liquidity' in the context of fierce competition between Republican and Democratic candidates.
The analyst's observation was made a few days after Trump launched his World Liberty Financial (WLFI) token on October 16. However, it failed to meet expectations.
After the first day of trading, the token's sales amounted to only $12.7 million, with $287 million worth of tokens still unsold.
