Is Trump's Expected Victory the Catalyst? Bitcoin Surges Towards $70,000

Is Trump's Expected Victory the Catalyst? Bitcoin Surges Towards $70,000Bitcoin has been on a tear in recent weeks, with its rally showing no signs of slowing down, fueling expectations among some. JonathandeWet, Chief Investment Officer of Zerocap, said in an investor report on Wednesday that the upward momentum of Bitcoin remains strong, anticipating a surge to $70,000 in the coming weeks

Is Trump's Expected Victory the Catalyst? Bitcoin Surges Towards $70,000

Bitcoin has been on a tear in recent weeks, with its rally showing no signs of slowing down, fueling expectations among some. JonathandeWet, Chief Investment Officer of Zerocap, said in an investor report on Wednesday that the upward momentum of Bitcoin remains strong, anticipating a surge to $70,000 in the coming weeks. Over the past seven days, Bitcoin has gained approximately 13%, significantly outperforming global stock indices and gold. As of this writing, the token is trading above $67,000.

While multiple factors are driving Bitcoin's ascent, some investors believe that Donald Trump is a key catalyst. Recent polling data has shown a strong surge in support for Trump, with Bitcoin's rise suggesting a growing market belief that he might win the November US election. Billionaire Stan Druckenmiller has cited the cryptocurrency market as one of the reliable indicators of Trump's expected victory. He pointed out that over the past 12 days, the market seems quite confident about Trump winning. "You see it in the bank stocks, and you see it in crypto," he noted.

Trump has a close association with Bitcoin. He has vowed to make the United States the global cryptocurrency capital in a bid to woo voters away from his Democratic rival, Kamala Harris. His fondness for the cryptocurrency industry has led to Bitcoin being categorized as a so-called "Trump trade." As prediction markets show an increasing probability of Trump's victory, Bitcoin's momentum has also gained traction.

On the crypto prediction platform Polymarket, Trump's odds of winning have jumped to 58%, while Harris's odds have dropped to 41%. Another prediction website, PredictIt, shows Trump's chances at 54% against Harris's 49%. However, some emphasize that most polls have results that fall within the margin of error, making predictions from prediction markets not a true representation of the election landscape. In nationwide polls, Harris still maintains a lead over Trump.

Beyond political bets by some voters, Arisa Toyosaki, co-founder of cryptocurrency derivatives service provider Cega, points to the influx of funds into Bitcoin ETFs as a significant reason for the price surge. Since October 11, net inflows into US Bitcoin ETFs have surpassed $1.6 billion.