Market funds are betting wildly on Trump, Bitcoin is soaring rapidly
Multiple factors driving Bitcoin's rise
Analysis generally believes that this surge in Bitcoin is closely related to the trends in the U.S. election. Trump has claimed during his campaign that if he returns to the White House, he will designate Bitcoin as a strategic reserve asset for the U.S. and make America the 'global cryptocurrency capital.' Harris has also chosen a different route from Biden, vowing to support cryptocurrencies.
Options traders have increased their bets on Bitcoin, predicting that by the end of November, Bitcoin will break through the historical high of $80,000. This is also reflected in the bocai market. Currently, on multiple prediction platforms, Trump's probability of winning is significantly higher than Harris's. This, in turn, has an impact on the U.S. stock market and the cryptocurrency market, becoming an important reason for investors to chase Trump trades.
In addition to the positive factors brought by Trump, Bitcoin's rise also has an anti-inflationary aspect. Billionaire Paul Tudor Jones has called on investors to use Bitcoin as a hedge against inflation, as both Trump and Harris would exacerbate the burden of U.S. federal debt if they come to power.
At the same time, although the Federal Reserve made a high-profile rate cut in September, there are many in the market who believe that the inflationary embers have not been completely extinguished. Under this skepticism, it is not surprising that Bitcoin, seen as a safe-haven asset, is rising in price, and another major safe-haven asset, gold, has also been hitting historical highs this month.
Can Bitcoin maintain its current momentum?
As Bitcoin breaks through the $73,000 barrier, many are wondering, 'Can it maintain this momentum?' In June, Bitcoin briefly reached a similar height but struggled to sustain it. However, the current market conditions seem to support a stronger position.
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