Bitcoin has soared more than 8% this week and is just a few dollars away from Tuesday's all-time high. The original cryptocurrency pared its gains to above $73,000 on Wednesday as the crypto industry priced in a victory for Republican presidential candidate Donald Trump.
Crypto bulls predict that Bitcoin will hit a new all-time high previously recorded in March in the days leading up to the election. Bitcoin price rose over $2,000 within a few hours, then fell slightly and continues to fluctuate between $71,000 and $73,000. The currency rose 12% through the “Uptober,” the nickname for Bitcoin's historically favorable month.
The broader crypto market followed a similar trend this week, with Ethereum and Solana growing 4% and 5%, respectively. Dogecoin, the meme coin often associated with Elon Musk, rose 23% after the billionaire mentioned it at several of Trump's rallies.
Coinciding with Bitcoin's rally on Tuesday, spot Bitcoin exchange-traded funds saw large inflows. Amid pre-election market volatility, the ETF attracted $870 million, the third-largest inflow since its approval in January. After these Bitcoin ETFs were introduced to the market, Bitcoin reached an all-time high of over $73,000 in March.
The candidacy comes as Mr. Trump widens his lead over Vice President Harris in the cryptocurrency prediction market Polymarket. With less than a week to go until the election, Polymarket bettors are giving Trump a 67% chance of winning the election, but while traditional polls have shown the two sides in a close race, new evidence suggests that the site's This indicates that the majority of transactions are fake.
Both candidates are in the final stages of their campaigns, appealing to undecided voters and urging their supporters to go to the polls. On Sunday, President Trump held a rally at Madison Square Garden where Elon Musk spoke about his involvement in Trump's proposed Department of Government Efficiency (DOGE), a nod to Dogecoin.
Trump has gone to great lengths to appeal to the crypto industry this election cycle, pledging to make America the “crypto capital of the planet.” He launched his own cryptocurrency venture and spoke at this year's Bitcoin conference in Nashville, pledging on the first day to fire SEC Chairman Gary Gensler.
Although Harris has taken a more moderate stance defending cryptocurrencies than President Biden, some analysts predict that her victory could cause Bitcoin prices to plummet. Michael Terpin, CEO of Transform Ventures and a crypto billionaire, says the currency will continue to grow regardless.
“There's too much momentum right now,” Terpin said. luck. “We're at a point in the cycle right now where it usually goes up quite a bit. I just think that if Trump wins, it's going to go faster and higher and higher.”
