Bitcoin surged over 8% this week, nearing its all-time high as the U.S. presidential election approaches. The digital currency briefly surpassed $73,000 before pulling back on Wednesday. Analysts believe the market anticipates a win for Republican candidate Donald Trump.
Bitcoin is highly sensitive to global liquidity.
I sat down with @samcallah to understand why bitcoin explodes higher when global liquidity increases. Sam does a great job explaining the macro forces at play, including the effects on bitcoin, gold, and stocks.
Sam is incredibly… pic.twitter.com/7la0UW6B3y
— Anthony Pompliano 🌪 (@APompliano) October 29, 2024
Bitcoin is telling you something right now.
Make sure you are paying attention.
— Anthony Pompliano 🌪 (@APompliano) October 29, 2024
Crypto bulls predict Bitcoin will reach a new record high, previously set in March, in the days leading up to the election. After rising over $2,000 within hours, Bitcoin’s price fell slightly and continues to fluctuate between $71,000 and $73,000. The cryptocurrency has grown 12% throughout “Uptober,” a nickname for Bitcoin’s historically strong month.
The broader crypto market is following a similar trend, with Ethereum and Solana growing 4% and 5%, respectively. Dogecoin, often associated with Elon Musk, has advanced 23%, bolstered by Musk’s promotion of the coin at Trump rallies. Spot Bitcoin exchange-traded funds (ETFs) saw strong inflows coinciding with the rally on Tuesday.
$100,000 is a magnet and $200,000 will fall very quickly.
BTC pic.twitter.com/m0wyzY87W7
— Max Keiser (@maxkeiser) October 30, 2024
The ETFs attracted $870 million amid pre-election volatility, marking the third-largest inflows since their approval in January.
Bitcoin soars as election draws near
Bitcoin reached its all-time high of over $73,000 in March, shortly after these ETFs were introduced.
The surge comes as Trump widens his lead against Vice President Harris on Polymarket, a crypto prediction market. Polymarket bettors give Trump a 67% chance of winning, while traditional polls show a close race. Both candidates are making a final push to court undecided voters and encourage supporters to vote.
Trump held a rally at Madison Square Garden where Elon Musk talked about his involvement in Trump’s proposed Department of Government Efficiency, or D.O.G.E., a nod to Dogecoin. Trump has made efforts to appeal to the crypto industry, promising to make America “the crypto capital of the planet.” He launched his own crypto venture, spoke at the Bitcoin conference in Nashville, and vowed to replace SEC Chair Gary Gensler. While Harris has taken a more measured pro-crypto stance compared to President Biden, some analysts predict Bitcoin’s price could crash with a Harris victory.
Michael Terpin, CEO of Transform Ventures, says the currency will continue to grow regardless of the outcome. “There’s just too much momentum right now,” Terpin said. “We’re at the point of the cycle where it usually does go up quite a bit.
I just think that Trump winning would make it quicker and faster and higher.”
