While Asian markets experienced fluctuations in stock prices, the world of cryptocurrencies displayed remarkable resilience.
Bitcoin [BTC] soared to a level not seen in three months, demonstrating a significant increase in trading activity as the “Trump trades” gained momentum.
At the start of trading on October 21st, BTC reached $68,496.98, showcasing a more than 6% rise over the past week and over 8% in the previous month.
This occurred as investors positioned themselves ahead of the impending U.S. presidential election, only two weeks away.
The Impact of Trump’s Growing Chances on the Crypto Sphere
According to data from Polymarket, Donald Trump is leading with 61.1% of projected votes, with Kamala Harris following at 38.8%.
Consequently, in a week devoid of significant economic events, attention shifted to corporate earnings and the risks associated with the upcoming election.
Thus, it appears evident that Bitcoin has benefited from Trump’s surge, with his administration perceived as more accommodating towards cryptocurrency regulations.
His policies on tariffs, taxes, and immigration are seen as inflationary, potentially bolstering the dollar and favoring the cryptocurrency market.
Insights from Industry Leaders
Commenting on this, Chris Weston, head of research at Australian broker Pepperstone, pointed out that investors could face increased costs when safeguarding themselves against dollar volatility and other risks related to their portfolios.
Weston remarked,
“With only 15 days left until the U.S. election, traders must determine whether now is the appropriate time to step up their election-related trades.”
Further contributing to the discourse, Brad Bechtel, global head of FX at Jefferies, highlighted that rising real interest rates were lending support to the dollar, particularly against three major currencies.
“We anticipate this trend to persist leading up to the election and, if Trump emerges victorious, potentially even after the election.”
Is a Trump Victory Probable?
In a recent publication on X, Alex Thorn, Head of Firmwide Research at Galaxy Digital, released a policy evaluation scoring the cryptocurrency positions of presidential candidates Kamala Harris and Donald Trump.
Thorn stated,
“The downside risk of a Harris win appears limited, with the potential for substantial gains in the event of a Trump victory.”
As anticipated, a detailed review of the scorecard indicated that out of the nine core aspects evaluated, Donald Trump outshone Kamala Harris in seven areas.
Hence, with just a few days until the U.S. presidential election, it will be compelling to observe how the cryptocurrency market reacts during and post the election.