According to the Financial Times, as the US presidential election approaches, cryptocurrency traders and analysts speculate that Donald Trump’s potential victory could significantly boost Bitcoin. Despite challenges since the halving event in April — including asset sales and expenditures totaling $9 billion from Mt Gox in the US and Germany — market discussions focus on its potential. Trump’s “trade” narrative could push the leading cryptocurrency higher later in 2024.
Since the halving in 20XX, BTC has dropped X% within a month due to factors like $1.5 billion government sales and hedge fund volatility suppression. Traders are looking for catalysts for Bitcoin’s next upward move.
Trump is seen as crypto-friendly, and optimism grows about his victory positively impacting the industry and regulation. Analysts suggest Trump’s energy policies may aid cryptocurrency mining. Concerns remain about Biden’s previous cryptocurrency tax proposals.
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Despite a bearish market, significant Bitcoin investors continue to enter. Standard Chartered’s Jeff Kendrick noted Trump’s potential policies — increasing the US deficit, tariffs, and tax cuts — could raise inflation and bond yields, affecting Bitcoin as a hedge.
The impact of “Trump’s trade” on BTC depends on his election opponent. According to RealClearPolitics forecasts, Trump has 55% support, while Biden has 16.5%. Narratives and perceptions drive market sentiments, potentially strengthening BTC if there’s confidence in a Trump victory.
