Bitcoin has experienced a surge of over 8% this week, almost reaching its all-time high on Tuesday. The original cryptocurrency surpassed $73,000 before seeing a slight decrease in gains on Wednesday as the crypto industry anticipates a victory for Republican presidential candidate Donald Trump.
Optimistic crypto enthusiasts are forecasting that Bitcoin will hit a new record high, previously achieved in March, in the days leading up to the election. After climbing over $2,000 in just a few hours, the price of Bitcoin slightly dropped and is currently fluctuating between $71,000 and $73,000. The currency has grown by 12% throughout the month of “Uptober”—a term coined for Bitcoin’s historically profitable month.
This week, the broader crypto market is following a similar trend with Ethereum and Solana experiencing 4% and 5% growth, respectively. Dogecoin—the meme coin often associated with Elon Musk—has surged by 23%, boosted by the billionaire’s mention of the coin at various Trump rallies.
Spot Bitcoin exchange-traded funds witnessed significant inflows coinciding with Bitcoin’s increase on Tuesday. The ETFs attracted $870 million amid pre-election market volatility, marking the third-largest inflow since their approval in January. Bitcoin had reached its previous all-time high of over $73,000 in March following the introduction of these Bitcoin ETFs to the market.
The current momentum coincides with Trump expanding his lead against Vice President Harris on Polymarket, a crypto prediction market. With the election less than a week away, Polymarket bettors give Trump a 67% chance of winning, while traditional polls show the two candidates in a deadlock—though recent evidence suggests that a significant portion of trading on the site is fictitious.
Both candidates are in the final stages of their campaigns, making a final push to attract undecided voters and urge supporters to cast their votes. On Sunday, Trump held a rally at Madison Square Garden where Elon Musk discussed his potential involvement in Trump’s proposed Department of Government Efficiency, or D.O.G.E—a reference to Dogecoin.
Trump has made a considerable effort to appeal to the crypto industry this election cycle, pledging to make America “the crypto capital of the planet.” He has launched his own crypto project, spoken at this year’s Bitcoin conference in Nashville, and vowed to dismiss SEC chair Gary Gensler on his first day in office, among other promises.
While Harris has taken a more restrained pro-crypto stance compared to President Biden, some analysts speculate that Bitcoin’s price could plummet if Harris wins. Nevertheless, CEO of Transform Ventures and crypto millionaire Michael Terpin believes that the currency will continue to grow regardless of the election outcome.
“There’s just too much momentum right now,” Terpin told Fortune. “We’re at the point in the cycle where it typically sees significant growth. I simply think that a Trump victory would lead to a quicker, higher surge.”
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