Coin World News Report:
Bitcoin Soars to Three-Month High as “Trump Trade” Gains Momentum Ahead of US Election
Bitcoin [BTC] surged to a three-month high, reflecting a strong momentum in the so-called “Trump Trade” and a significant increase in trading activity. Donald Trump is leading in Polymarket data, which is believed to be beneficial for the cryptocurrency market.
In the volatile Asian market, stocks saw mixed movements, while the cryptocurrency market showed significant resilience.
On October 21st, BTC reached $68,496.98, marking an increase of over 6% in the past week and over 8% in the past month.
This occurred as investors are only two weeks away from the US presidential election, with Trump’s chances of winning increasing and his impact on the cryptocurrency market.
Polymarket data shows that Donald Trump is leading with an estimated 61.1% of the predicted votes, while Kamala Harris trails with 38.8% of the votes.
Therefore, as there are no major economic events this week, the market is focused on corporate earnings and election risks.
It is evident that Bitcoin has risen with the increasing prospects of Trump, as his administration is seen as more lenient towards cryptocurrency regulation.
His tariffs, tax policies, and immigration policies are seen as inflationary, which could boost the US dollar and benefit the cryptocurrency market.
Executives weigh in on this matter. Chris Weston, Research Director at Australian broker Pepperstone, emphasized that investors may incur increasing costs as they hedge against US dollar volatility and other portfolio-related risks.
Weston stated, “With only 15 days left until the US election, traders need to decide if now is the appropriate time to start election trading with more confidence.”
Brad Bechtel, Global Head of FX at Jefferies, also joined the debate, adding that the rise in real interest rates is providing support for the US dollar, especially against the three major currencies.
“We expect this trend to continue until the election, and if Trump wins, likely for a long time after the election as well.”
Is Trump likely to win?
In fact, in a recent post on X, Alex Thorn, Firmwide Research Director at Galaxy Digital, unveiled a policy scorecard that assesses the cryptocurrency positions of presidential candidates Kamala Harris and Donald Trump.
He stated, “The downside risk of Harris winning is limited, while an explosive upside is possible if Trump wins.”
As expected, a detailed examination of the scorecard revealed that Donald Trump outperformed Kamala Harris in seven out of the nine key points evaluated.
Therefore, with only a few days left until the US presidential election, observing the cryptocurrency market’s reaction during and after the election will be interesting.
