As the US presidential election approaches, crypto traders and analysts are predicting a win for Donald Trump Bitcoin’s November price surge could lead to new highs, according to a report in the Financial Times.
Despite expectations of Post-Half MarchBitcoin has struggled to gain momentum since April, as it faced various factors such as confiscated asset sales by US and German authorities and a $9 billion backlog of Bitcoin and Bitcoin Cash (BCH) sales from the defunct Bitcoin Company. Mt Gox Japanese Stock Exchange.
However, market participants are increasingly discussing the possibility of a “Trump trade” that could boost Bitcoin’s price in the second half of the year.
Trump’s win could be a potential catalyst for a price rebound
Following the halving event in April, during which the daily supply of BTC available to miners was cut in half, the price of Bitcoin has fallen by more than 20% in the past month alone.
Several factors contributed to this lackluster performance, including: selling pressure With authorities holding more than $15 billion worth of Bitcoin over the past few weeks, and Bitcoin trading on it, which has dampened volatility by hedge funds, traders and analysts have been looking for the catalyst to drive the next upward move in Bitcoin prices.
According to According to the Financial Times, market optimism about Trump’s possible victory in the upcoming US elections is growing. Traders and analysts see Trump as the most pro-crypto candidate, given his positive engagement with the industry and acceptance of crypto contributions.
Industry executives are hopeful that the Trump administration, coupled with a strong showing by Republicans in Congress, will lead to more positive and clearer outcomes. Encryption Regulations.
Manuel Villegas, an analyst at Julius Baer, said the expectation is that Trump’s energy policy proposals could benefit cryptocurrency mining companies, potentially providing alternative energy sources for Bitcoin mining.
In contrast, concerns have been raised about Biden’s previous tax proposals on cryptocurrency miners, such as a proposed 30% tax.
How New Policies Could Impact Bitcoin Price
The potential implications of Trump’s policies on financial markets also drew interest, the report said. Trump’s policies Raising tariffs on foreign goods and cutting taxes could lead to higher inflation and U.S. Treasury yields.
This scenario, known as “financial dominance,” could impact the price of bitcoin, which has shown a correlation with key U.S. Treasury bond benchmarks, according to Jeff Kendrick, an analyst at Standard Chartered. A steeper curve and higher parity rates could push bitcoin higher, acting as a hedge against a decline in confidence in the U.S. Treasury market.
However, the likelihood of a “Trump deal” and its impact on Bitcoin momentum largely depends on the opponent Trump faces in the election. The average bet at RealClearPolitics is currently Trump’s Prospects 55% for Trump and 16.5% for Biden.
If Biden remains in the race, Bitcoin bulls could gain momentum. However, if a new candidate emerges who has a chance against Trump, the report suggests Bitcoin price performance could remain weak.
However, narratives and perceptions play an important role in driving the cryptocurrency market, and if enough people believe in a Trump victory, it could positively impact the price of Bitcoin.
At the time of writing, BTC has reclaimed the $56,560 level after a sharp drop to $53,500 in the early hours of Friday trading.
Featured image by DALL-E, chart by TradingView.com