Bitcoin prices have risen significantly since September, driven by central banks' monetary easing policies and the so-called “Trump trade” in the run-up to the US presidential election.
advertisementBitcoin has risen 9% over the past week and is up 31% from its September lows as markets bet on Trump's likely victory in the Nov. 5 U.S. presidential election.
The world's largest digital token topped $69,000, but retreated to about $67,000 on Monday, its highest level since July 31.
In euro terms, Bitcoin briefly rose above 64,000 euros on Monday, but fell to just over 62,300 euros at 5:20 a.m. CET on Tuesday.
Bitcoin price is currently at an all-time high of 70,000, which it hit in March, when optimism surrounding the approval of a spot Bitcoin ETF and expectations for a major Bitcoin halving event in April fueled the rise. That's just 8% below $3,000 (64,700 euros).
The upcoming US elections and easy monetary policy from central banks have sustained this upward momentum since September.
But the enthusiasm may have gone too far until President Trump eliminated certain pro-Bitcoin policies.
Michael McCarthy, market strategist and CCO at moomoo Australia, said: “President Trump's recent appeal to crypto allies during the campaign justified President Trump's rise in Bitcoin trading. There are no concrete policy announcements to do so.”
“With stocks up within 8% of their all-time highs, the risks of buying now may outweigh the potential rewards.”
playing cards trade
The recent surge in Bitcoin prices is mainly due to the so-called “Trump trade,” a financial market trend that reflects the scenario in which Republican candidate Donald Trump wins the November 5 US presidential election.
The former US president has been a particular supporter of cryptocurrencies, vowing at the 2024 Bitcoin conference to make the US the “crypto capital of the planet” and position Bitcoin as a global superpower.
President Trump also vowed to fire Securities and Exchange Commission Chairman Gary Gensler, promising that if re-elected, he would “appoint an SEC chairman who will build the future, not stop it.” .
U.S. Bitcoin spot ETFs saw net inflows of nearly $2.4 billion (59 billion euros) in the six days ending October 18, according to Bloomberg data.
Bitcoin investors have been accumulating Bitcoin-related assets on the assumption that U.S. cryptocurrency regulation will be more favorable under the Trump administration than under Kamala Harris.
While recent polls show the race between the two candidates to be extremely close, betting markets are leaning toward a Trump victory, with assets likely to benefit from his proposed policy changes. is influencing financial market trends.
Some analysts predict Bitcoin could reach $100,000 (€92,000), while President Trump's tariffs could reignite inflationary pressures and weigh on crypto markets Some analysts warn that there is a possibility that
advertisement“The most beautiful word in the dictionary is tariff,” President Trump said recently at an event at the Economic Club of Chicago.
Bitcoin-friendly macroeconomic environment
Enthusiasm for cryptocurrencies is back in 2024, with Bitcoin up 59% year-to-date.
The global macroeconomic background also plays an important role in the rise in the cryptocurrency market, especially Bitcoin prices.
Although cryptocurrencies are notoriously risky, they have experienced significant gains during central bank easing cycles, especially following the Federal Reserve's policy shift.
advertisementBitcoin has historically trended higher during periods of monetary easing by the Fed.
During the 2020 pandemic, the price of Bitcoin soared 1,600% year-over-year, reaching over $64,000 in April 2021.
In addition to China's recent drastic economic stimulus measures, signs of accelerating interest rate cuts by other major central banks may have further contributed to Bitcoin's rise.
Simply put, loose liquidity is the main driver of the crypto market rally.
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