Author: Sunil Jagtiani, David Pan, BNN Bloomberg; Translated by: Tao Zhu, Jinse Finance
Bitcoin edged up to its highest level in more than a month as traders assessed the impact of U.S. President Joe Biden abandoning his re-election bid.
The largest digital asset recovered from early losses to hover around $68,300 as of 8:42 a.m. on Monday in Singapore as markets reacted to a potential contest between pro-crypto Donald Trump and Kamala Harris.
Tony Sycamore, market analyst at IG Australia Pty, said the rise in bitcoin prices "reflects the market's view that the Democratic Party under Kamala Harris will not be able to overtake Trump in the presidential election, and that bitcoin has ushered in a new dawn under a pro-cryptocurrency U.S. president."
“We expect the market to become more investable under the Trump administration,” Benjamin Celermajer, co-chief investment officer at Magnet Capital, told Bloomberg News. He said he expects tokens with “real value drivers” to perform well, such as those associated with the Maker, Aave and Lido protocols.
Trump, who has made a notable turn in support of cryptocurrencies in recent months, is scheduled to speak at a major Bitcoin conference in Nashville on July 27.
The Republican presidential candidate will also host a fundraiser after the convention, where potential attendees will be asked to donate $844,600 per seat.
In contrast, “we don’t know yet what Harris thinks about cryptocurrencies,” said Caroline Bowler, CEO of BTC Markets. “For a topic like cryptocurrencies that could be a make-or-break issue for either candidate, we’ll likely learn more about her views in the coming weeks.”
On the X, an image of Elon Musk’s head with laser eyes painted on it is often considered a sign of enthusiasm for Bitcoin, with popular crypto accounts celebrating the rapid rise of the digital currency.
Teong Hng, CEO of crypto investment firm Satori Research, said activity in the over-the-counter options market suggests Bitcoin could soon reclaim its all-time highs.
Rising interest in $100,000 December 2024 call options suggests institutional investors are becoming more optimistic. Hng said he “expects a strong year-end rally, which would be icing on the cake if Trump wins.”
Over the past week, as calls for Biden to withdraw grew louder, Bitcoin's relative strength stood in stark contrast to the weakness in the stock market.
Additionally, recent “underlying momentum” inflows into bitcoin-backed exchange-traded funds suggests we could see another inclination toward $70,000 for bitcoin,” Chris Weston, head of research at Pepperstone Group, wrote in a note.
