Bitcoin Surges to Six-Month High, Trump Victory Expectations Drive Momentum

Bitcoin Surges to Six-Month High, Trump Victory Expectations Drive MomentumBitcoin rallied again on Monday, driven by significant inflows into Bitcoin ETFs and expectations of a more favorable regulatory environment in the crypto space should Donald Trump be re-elected. As of press time, Bitcoin is trading near $70,000, its highest level since June

Bitcoin Surges to Six-Month High, Trump Victory Expectations Drive Momentum

Bitcoin rallied again on Monday, driven by significant inflows into Bitcoin ETFs and expectations of a more favorable regulatory environment in the crypto space should Donald Trump be re-elected. As of press time, Bitcoin is trading near $70,000, its highest level since June. Ethereum, the second-largest cryptocurrency, and other altcoins also followed suit.

Data shows that U.S. Bitcoin spot ETFs attracted nearly $2.4 billion in net inflows over the six days ending Friday, October 18, coinciding with an increase in betting odds favoring a Trump victory. Bitcoin has surged nearly 10% in the past week, marking its best weekly performance in over a month. Year-to-date, Bitcoin is up 61.6%, significantly outperforming the Nasdaq 100 index's 20.7%. Will it continue its upward trajectory or reverse course?

Trump's consistent advocacy for cryptocurrency has solidified Bitcoin's position as a "Trump trade," with market sentiment closely tying the coin's price movement to the likelihood of his victory. Bitcoin's performance has become a key indicator for investors gauging the outcome of the election.

With just 15 days left until the U.S. election, Bitcoin's recent surge to new highs undoubtedly signals investors' increased confidence in a Trump win. Last month, Standard Chartered predicted that Bitcoin could rally to $125,000 if Trump wins, while a Harris victory could also benefit Bitcoin, pushing prices towards $75,000. Although Harris's stance on crypto is less enthusiastic than Trump's, she has also indicated a more favorable approach towards the industry.

However, some institutions anticipate a more pronounced impact on Bitcoin prices depending on the election outcome. Bernstein predicts that a Harris victory could depress Bitcoin prices to $30,000, potentially resulting in the largest risk-off event in the market to date.