Bitcoin breaks the bank: Crypto leap sends shockwaves through markets
In a dazzling leap forward, Bitcoin smashed through the US$71,000 barrier, sending shockwaves through the financial world. This crypto milestone, unmatched since June, comes on the heels of hefty inflows into exchange-traded funds and rampant election speculation.
As the clock ticked past 10.45am in Singapore, the digital asset darling rocketed over 2%, peaking at an impressive US$71,310. Not to be left in the dust, Ethereum and Dogecoin also saw gains, each rising about 4%.
With the US presidential election looming, Bitcoin has emerged as the so-called Trump trade. The outspoken Republican frontrunner, Donald Trump, has been cheerleading digital currencies throughout his campaign, a stand that’s hit home with segments of the market. While prediction markets give Trump a slight edge, the polls paint a nail-biting picture against his rival, Democratic candidate Vice President Kamala Harris.
Market whizz Tony Sycamore from IG Australia chimed in on the debate.
“Bitcoin is continuing to price in a Donald Trump election victory.”
However, he cautioned that Bitcoin needs a firm foothold beyond US$70,000 to get close to its March high of US$73,798.
Trump’s grand vision? To crown the US as a global crypto hub, a stark contrast to Harris’s careful plan to wrap the industry in regulations. This policy divide stands out, especially after the Biden era’s regulatory approach to crypto.
Adding a twist to his campaign, Trump floated the idea of appointing none other than Elon Musk, his major campaign benefactor, to helm a novel scheme to slash government spending. The stunt, cheekily named the Department of Government Efficiency (DOGE), even tips its hat to Musk’s beloved Dogecoin.
Meanwhile, options traders are staking their bets on Bitcoin hitting US$80,000 before November’s end, election outcomes notwithstanding. The suspense around the November 5 election day is ramping up volatility. US spot-Bitcoin ETFs are already swimming in US$3.3 billion in net inflows this month, reported Bangkok Post.
Despite whispers of a less generous Federal Reserve and scrutiny on Tether, the stalwart crypto asset has bounded 70% in 2024. In an unpredictable digital landscape, Bitcoin’s allure continues to captivate investors in search of fortune and fortune-telling.
What Other Media Are Saying
- The Business Times reports that Bitcoin surpassed $71,000 for the first time since June, linked to the upcoming US election as a potential “Trump trade” strategy. (read more)
Frequently Asked Questions
Here are some common questions asked about this news.
Why might Bitcoin be influenced by the US presidential election?
Cryptocurrency markets are reacting to candidates’ differing stances on crypto regulation, with Trump’s pro-crypto approach appealing to investors.
How could Trump’s crypto policies affect the global market?
Trump’s policies could position the US as a crypto hub, potentially reshaping global crypto regulations and market dynamics.
What if Bitcoin reaches US$80,000 by November’s end?
Such a rally could solidify Bitcoin’s status as a resilient asset, attracting more institutional investments and mainstream acceptance.
How does Elon Musk’s involvement with Trump impact Dogecoin?
Musk’s influence could boost Dogecoin’s popularity and value, especially if his role in government emphasizes crypto-friendly initiatives.
What are the implications of the high volatility around Election Day for Bitcoin traders?
Traders might experience significant gains or losses, highlighting the need for strategic risk management during this volatile period.
