Bitcoin Recovers $70,000 After 4 Months... US Election Optimism [Bitcoin Now]

Republican Optimists Betting on Trump

Former U.S. President and Republican presidential candidate Donald Trump waves his hand after delivering a speech at a town hall meeting on the 23rd (local time)
[Photo by Yonhap News]

Bitcoin, the leading virtual asset, has reclaimed the $70,000 level for the first time in over four months.

According to the global virtual asset market tracking site CoinMarketCap, at 7:10 a.m. on the 29th (Korean time), the price of Bitcoin surpassed $70,000. After a slight decline, it again broke the $70,000 mark around 8:05 a.m. This is the first time Bitcoin has exceeded $70,000 since June 7, over four months ago.

With the U.S. presidential election scheduled for the 5th of next month, capital inflow into the virtual asset market is accelerating. According to CoinShares, a virtual asset asset management firm, the net inflow into digital assets over the past week reached $910 million. This brings the total inflow for this year to $27 billion, about three times that of 2021.

At a campaign rally in New York, Elon Musk, CEO of Tesla, expressing support for former President Donald Trump.
Photo by Yonhap News

The driving force behind Bitcoin's rally is the anticipation of the U.S. presidential election. Former President Trump, the Republican candidate, has positioned himself as a pro-virtual asset advocate. If elected, he is expected to actively ease regulations on industries such as mining and exchanges. The Trump campaign has even presented a detailed long-term plan to stockpile Bitcoin as a strategic asset, similar to gold and crude oil.

Bitcoin proponents continue to express expectations that it will surpass $100,000. Matt Hogan, Chief Investment Officer (CIO) of Bitwise, also cited on the social networking service X several reasons for the bullish outlook, including ▲ renewed acceleration of inflows into Bitcoin spot exchange-traded funds (ETFs), ▲ the upcoming U.S. presidential election, ▲ China's economic stimulus measures, ▲ the global trend of interest rate cuts, ▲ supply shocks due to Bitcoin halving, ▲ accumulation by 'whales' (large holders), and ▲ the U.S. government's unlimited deficit.

Jeff Kendrick, an analyst at Standard Chartered, also predicted, "If the Republicans take control of Congress in the November U.S. election, Bitcoin prices could rise unprecedentedly to $125,000 by the end of the year." He forecasted that the price could reach $73,000 by election day. He added that further increases would be possible after the election. He expressed confidence that the price would surge 4% immediately after the election results are announced and then rise about 10% more over the following days.

Republican presidential candidate former President Trump is closely trailing Democratic vice presidential candidate Kamala Harris. In a joint poll released on the 25th (local time) by The New York Times and Siena College, Harris and Trump were tied at 48% each. Earlier this month, a poll by The New York Times and Siena College showed Harris leading 49% to 46%. The New York Times assessed that the environment is becoming less favorable for Harris.