However, by 10:40 AM, the leading cryptocurrency was trading 2.2% higher around $72,333.
The surge in the price of bitcoin is seen as a bet on a Republican victory, as Donald Trump has emerged as the pro-crypto candidate.
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Trump is currently leading in prediction markets, while polls show a close race with Democratic candidate Vice President Kamala Harris. Volatility is expected to be high around Election Day on November 5th.Shivam Thakral, CEO of BuyUcoin, stated that Bitcoin’s surge is driven by robust institutional demand, with U.S. Bitcoin ETF holdings hitting a record $66 billion and open interest increasing by $2 billion in just 48 hours.
Avinash Shekhar, Co-Founder & CEO of Pi42, remarked that Bitcoin’s rally showcases growing momentum and confidence in digital assets, with substantial trading volume and heightened investor interest as the U.S. presidential elections approach.The price of Bitcoin has been closely linked to Trump’s polling position, as a Republican win is expected to drive demand for the digital currency. During his presidency, Trump referred to cryptocurrencies as a scam, but he has since shifted his stance, positioning himself as a “pro-Bitcoin president” if elected and launching his own crypto platform.Meanwhile, options traders are betting that Bitcoin could reach $80,000 by the end of November, regardless of the election outcome. Trump has also suggested enlisting Elon Musk’s help to reduce government spending, a plan humorously dubbed the Department of Government Efficiency (DOGE), referencing the Dogecoin token that Musk supports.
Bitcoin has surged by 111% over the past year, despite reduced expectations for Federal Reserve interest rate cuts and increased scrutiny of the stablecoin Tether.
“With the technical charts looking strong, BTC is all set to create a new ATH in the next few days. Bitcoin’s resistance stands at $74,000 and strong support lies at $70,000,” said Edul Patel, CEO Of Mudrex.
Vikram Subburaj, CEO of Giottus Crypto Platform, said, “If Bitcoin can secure a breakout above $74,000, it could potentially advance to $77,000.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)