The closely contested U.S. presidential election between Donald Trump and Kamala Harris has significantly influenced the cryptocurrency market. Over the past two months, the total market value of digital currencies has surged to an impressive $2.330 trillion, with Bitcoin surpassing the $73,000 mark for the first time. But will this bullish trend continue thanks to the election, or have other factors also played a role in this unprecedented growth?
A report by CoinPedia suggests that a victory for Donald Trump in the U.S. presidential election could become a powerful catalyst for Bitcoin’s price growth. Given Trump’s positive stance on cryptocurrencies, it is expected that, if he wins, Bitcoin’s price could surpass its historical peak and reach $79,000. Market analysts believe this growth would be driven by Trump’s potential policies supporting digital currencies and blockchain technology.
Bitcoin exchange-traded funds (ETFs), particularly BlackRock’s IBIT and Grayscale’s GBTC, have played a crucial role in Bitcoin’s recent price surge. Net capital inflows of $29.95 billion into the IBIT fund and $15.22 billion into the GBTC fund over the past four weeks indicate a significant increase in institutional demand for Bitcoin. This suggests that major investors see Bitcoin as an attractive asset and an integral part of their investment portfolios.
Bitcoin’s Price Outlook If Trump Loses
If Kamala Harris wins, her relatively positive view of cryptocurrencies suggests that the market impact would be limited. Analysts indicate that in this scenario, Bitcoin’s price might drop to the support level of $65,000. However, reducing the base interest rate after the election could help reignite the upward trend. Thus, Trump’s defeat could be a bittersweet experience for Bitcoin holders!
Regardless of the election outcome, the expected 0.25% cut in the base interest rate and continued institutional support could help drive Bitcoin’s price growth. Due to his positive stance, a Trump victory might have a stronger bullish impact, even with a Harris victory, and the upward trend in Bitcoin is expected to resume after a short-term correction.
