Synopsis
Former President Donald Trump is considered the most pro-crypto candidate in U.S. history, with promises like establishing a Bitcoin strategic reserve and positioning the U.S. as a crypto leader, boosting investor confidence. As his odds of winning rise to 60% on Polymarket, new investors are entering the crypto market.
Over the past week, Bitcoin has shifted gears, surging nearly 12% to trade around the $68,100 mark. This rally has rekindled the excitement of ‘Uptober,’ with a wave of market optimism driving Bitcoin closer to the $70,000 milestone ahead of the upcoming US Presidential election. Along with the price boost, Bitcoin’s market capitalisation has risen to $1.34 trillion, commanding a dominant 57.72% of the crypto market. Let’s dive into the key factors that have fueled Bitcoin’s recent price action.
Increased Odds of Trump’s Victory
It is a known fact that former President Donald Trump is the most pro-crypto candidate that the US has seen so far and the crypto community has been rooting for his return to the White House. With promises to form a Bitcoin strategic reserve and strong statements like making the US the powerhouse of crypto have strengthened vast investors confidence. With the odds of Trump’s victory increasing to 60% in the polymarket, many new investors have entered the crypto markets to capitalize on the growing asset class.
Trump’s influence in the crypto world has already been demonstrated by the success of “World Liberty Financial,” a DeFi venture backed by him. The project raised over $220 million through token sales within just an hour, signalling both Trump’s commitment to the industry and investor confidence.
Crypto Tracker
TOP COIN SETSCrypto Blue Chip – 56.72% BuyNFT & Metaverse Tracker4.96% BuySmart Contract Tracker4.50% BuyWeb3 Tracker0.41% BuyDeFi Tracker-0.96% BuyTOP COINS (₹) Solana13,002 (0.56%)BuyBitcoin5,740,313 (0.48%)BuyEthereum222,055 (0.4%)BuyBNB50,253 (-0.09%)BuyTether84 (-0.12%)Buy
Meanwhile, Democratic candidate Kamala Harris has also expressed interest in introducing a clear regulatory framework for cryptocurrencies, further appealing to the crypto community. With both sides recognizing the growing importance of digital assets, investors are hoping that the election could bring significant changes to the crypto landscape.
Did you Know?
The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.
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Inflows into Bitcoin Spot ETFs
Another factor fueling Bitcoin’s upward momentum has been the surge in spot Bitcoin ETFs. Since their launch in the US in January, the net inflows have crossed $20.26 billion with over $1.5 billion coming in over the last week, making it the fastest growth in ETF history. BlackRock, the world’s largest asset manager, saw $393.4 million in daily inflows on October 16 alone. This level of interest from institutional investors is a strong indicator of confidence in Bitcoin’s prospects. As more capital flows into these ETFs, it provides upward momentum to Bitcoin’s price, encouraging both retail and institutional investors to join the rally.
On the other hand, the growing interest in Bitcoin is also being reinforced by the actions of Bitcoin “whales”—individuals or entities holding large amounts of Bitcoin. On-chain analytics firm CryptoQuant has revealed that new whale wallets now hold 1.97 million BTC, representing a massive 813% increase year-to-date. This aggressive accumulation by whales is seen as a positive sign for Bitcoin’s price trajectory. However, it’s worth noting that large sales from these whales could also lead to price corrections, depending on market conditions.
Mt. Gox and FTX Repayments
A more unexpected contributor to Bitcoin’s rally has been the delay in repayments to creditors from the now-defunct Mt. Gox exchange. With a large influx of Bitcoin coming into the hands of the long-awaited investors, there would be a heavy profit booking in order to cash out of the market. However, the extended timeline for these repayments has alleviated the fears of a sell-off, allowing Bitcoin more room to rally.
In addition, the recent ruling requiring FTX to repay its customers has brought in additional liquidity to the market.
Global Crypto Outlook
On a broader scale, the global economic outlook for crypto remains promising. A recent report by Aspen Digital shows that 94% of Asia’s private wealth sector is either already invested in digital assets or plans to do so soon. This demonstrates that crypto is not just gaining traction in Western markets but is also becoming a sought-after asset class in the Asia-Pacific region.
Adding to this optimism are bullish predictions from financial giants like BlackRock and Standard Chartered. Both have forecasted that Bitcoin is likely to touch $73,000 in the near future, lending further credibility to Bitcoin’s current rally. Such endorsements from major institutions continue to drive interest and confidence in the market.
Road Ahead:
Looking ahead, Bitcoin is well positioned to continue this rally supported by both retail investors and institutional investors. With more regulatory clarity, we will see more participation from both ends of the spectrum. As we approach the US elections, the outcome could significantly impact the future of Bitcoin, particularly if a pro-crypto candidate like Trump wins. Regardless, institutional interest, as evidenced by the inflows into ETFs and bullish market forecasts, suggests that Bitcoin could continue to rise in the coming weeks.
Top 5 crypto gainers during the week:
Dogecoin is up 25%
Worldcoin is up 21.2%
Aptos is up 19.7%
Jupiter is up 15.7%
Bitcoin SV is up 14.8%
Top 3 crypto losers this week:
Maker is down 11%
Helium is down 9.2%
Uniswap is down 7.6%
(The author is CEO and Co-founder of Mudrex, a global crypto investment platform.)
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times.)
