On the eve of the U.S. presidential election, Bitcoin returned above $70,000
Wall Street insiders predict that if Trump wins, Bitcoin may break through $75,000 on election day. If the Republican Party controls Congress, Bitcoin could reach a high of $125,000 by the end of the year. If the Democratic Party led by Harris wins, Bitcoin may temporarily decline, but it could still hit a historical high of around $75,000 by the end of the year
Boosted by factors such as technological advantages, favorable election outcomes, and bullish views from institutions, cryptocurrencies collectively surged.
Overnight, Bitcoin rose by over 3% to above $70,000, reaching a high of $70,107 per coin, with trading volume skyrocketing by 140% to over $36 billion.
Other types of cryptocurrencies followed suit. As of the time of writing, Ethereum and Dogecoin had risen by 2.4% and 11.7% respectively intraday.
With just one week left until the U.S. election day on November 5th, whoever wins the next U.S. presidency, it is a positive for cryptocurrencies.
Wall Street previously mentioned that Trump explicitly supports cryptocurrencies, making Bitcoin one of the "Trump trades," while Harris has also pledged to support regulatory frameworks for the industry, contrasting with the current Biden administration's crackdown on the industry.
Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered Bank, predicts that a Trump victory could see Bitcoin surpass $75,000 on election day, and if the Republicans control Congress, Bitcoin could reach a high of $125,000 by the end of the year.
Conversely, if the Democratic Party led by Harris wins, Bitcoin may experience a temporary decline, but could still hit a historical high of around $75,000 by the end of the year.
As the election day approaches, the volatility in the secondary market of cryptocurrencies continues to rise. Market data shows that while Bitcoin's implied volatility has been declining, trading activity in short-term options has surged recently, indicating that investors are pricing in potential turbulence in November.
Furthermore, the surge in cryptocurrencies is also being driven by the following factors: the Fed entering a rate-cutting cycle boosting risk sentiment; Bitcoin's DMA indicator showing a golden cross, signaling a bullish trend; news of Microsoft considering acquiring Bitcoin, leading to a large influx of institutional funds into Bitcoin spot ETFs; and Elon Musk publicly endorsing Dogecoin on the X platform.
