Bitcoin (BTC) is pushing towards its all-time high courtesy of Donald Trump’s improved ratings in the US election. As the former US President's chances of winning the upcoming election increase, Bitcoin is gaining massively.
BTC has recovered from its 7 months in September as it surged 26% since then. In the last 10 days, the price of the digital asset increased by 11.5%. Crypto analysts have attributed all of these to Trump's improved ratings in the US election.
In the last month, the former US President’s chances of winning the elections shot up from 36% to over 50%, as per ABC News. This has resulted in Trump-linked Bitcoin price forecasts by crypto analysts as there is a strong correlation between the price and Trump winning the US election.
Bernstein Research firm expects Bitcoin to reach $80,000-$90,000 range in Q4 if Donald Trump wins the election. But in case of a Kamala Harris win BTC can go down to $50,000 and test the $30,000-$40,000 range. This was the Bitcoin range when the ETF momentum began in Q4 2023.
This correlation between Bitcoin price surge and Trump’s US Presidential election campaign evolved as he changed his crypto stance in favour of the industry.
Earlier, the former US President labelled Bitcoin as “a scam” and its value “based on thin air”. But now he has pledged to open a BTC reserve and turn the US into the world’s crypto capital. Trump also launched his non-fungible tokens (NFTs) and WLFI tokens sale last week.
The ex-President has received enormous support from Dogecoin promoter Elon Musk while Kamala Harris has gained the support of Ripple CEO Chris Larsen who donated $10 million worth of XRP tokens to her presidential campaign.
Another reason why Bitcoin is gaining because of Trump’s improved chances in the US election is because the digital asset is similar to gold which attracts investors when people want to store value in anticipation of uncertainty.
If Donald Trump wins the US presidential election there are more chances of uncertain times while fear of budget deficits and trade war looms in case of Kamala Harris’ win. All this is causing high volatility in the crypto market as people are considering gold and Bitcoin as “safe haven”.
“It’s interesting that the bitcoin price has been volatile in recent weeks, suggesting that some investors and traders might be waiting for a stronger signal that Trump will win before going all-in on the digital currency,” said Dan Coatsworth, investment analyst at AJ Bell.
At present (October 23, 1:44 UTC), BTC is trading at $67,490.31 down by 0.21% in the last 24 hours while its trading volume has decreased by 19.81% to reach $32.28 billion. Bitcoin’s market capitalization stands at $1.33 trillion, decreasing 0.16% in the last 24 hours.