As the U.S. presidential election nears, Bitcoin has surged to $73,000, fueling speculation about the election's impact on the cryptocurrency. While some investors link a Trump victory to Bitcoin's growth, analysts point to other significant factors.
The New Wave of Speculation: How Much Is True?
A segment of crypto enthusiasts believes a Trump victory could create favorable conditions for Bitcoin. However, analysis shows the correlation between Bitcoin and the political landscape may be overstated. Observation of prediction markets indicates a weak correlation between Bitcoin prices and Trump’s winning odds.
Bitcoin’s Long-Term Prospects: More Than Just an Election Bet?
Long-term forecasts from Bernstein suggest Bitcoin could reach $200,000 by 2025, regardless of who becomes president. This is attributed to the rising popularity of Bitcoin ETFs and the influx of institutional capital.
Policy Divergence: What Will the Two Candidates Bring to Cryptocurrencies?
Trump's recent pivot toward crypto has sparked curiosity and questions about his genuine intentions. While Harris might take a more cautious stance, analysts believe opportunities for supporting the crypto industry exist regardless of the election outcome.
Despite potential short-term volatility, Bitcoin’s resilience is underpinned by global liquidity and its role as an inflation hedge. It is expected to continue strengthening amid structural changes in the global economy.
