Bitcoin Surges Amid Election-Friendly Policies

As the 2024 U.S. presidential race is heating up, so is Bitcoin, which is getting close to breaking above the psychologically significant US$70k barrier. Crypto traders appear extremely optimistic that the policies of the next administration will favour digital assets. This, paired with the asset’s long history of exceptionally strong performance during pre- and post-election cycles, has many optimistic that Q4 of this year will be significantly bullish.

Bitcoin saw a significant rally last week, with prices surging 10% and carrying the momentum into the weekend. On Monday, Bitcoin moved up to US$69,000, up from a low of $62,000 just days earlier. Market analysts attribute the rally to easing inflation, the likelihood of further interest rate cuts by the Federal Reserve, and three rounds of borrowing cost reductions by the European Central Bank this year. These macroeconomic developments are fuelling what traders call “Uptober” — a seasonally bullish month for crypto markets, which could lead into a seasonally bullish end of year, something which is typical in election years.

U.S. Election Shapes Crypto Sentiment

The November U.S. presidential election is proving to be a driving force for Bitcoin's performance at the moment, with factors such as Global Liquidity and monetary policy taking a backseat. Both leading candidates, Donald Trump and Kamala Harris, have taken a favourable stance on crypto assets, with the latter being slightly less enthusiastically supportive... we remind you that Trump has launched his own NFTs.

Trump, once a critic of digital currencies, has reversed course, now advocating for Bitcoin mining in the U.S. Meanwhile, Harris has pledged to support “innovative technologies,” including cryptocurrencies, as part of her economic platform.

The bipartisan support for digital assets has emboldened traders, fostering momentum and optimism, believing that a pro-Bitcoin future is assured no matter who wins the election.

Bitcoin and Ethereum ETFs Draw Billions

Spot Bitcoin exchange-traded funds (ETFs) performed exceptionally well last week, attracting over $2.1 billion in net new assets (in-flows). Ethereum (ETH) followed suit, posting a 9% gain as its price climbed from $2,440 to $2,650. Ethereum ETFs, added $78 million in new investments, a non-trivial increase in volume.

Traders and analysts are watching closely as the election draws near. Still, for now, the sentiment is clear: the crypto market is betting big on Bitcoin-friendly policies, no matter which candidate secures the White House. With macroeconomic conditions aligning and political tailwinds growing, the crypto market appears poised to continue its trend. Let’s see how high Q4 will take the price!