Bitcoin, the world’s largest cryptocurrency, saw slight gains on Thursday, rising 0.8% to $67,727.0, following a brief surge above $68,000 earlier in the week. Speculation surrounding the upcoming U.S. presidential election, particularly the potential impact of a Donald Trump victory, has contributed to a positive week for Bitcoin. Despite some cooling, Bitcoin is set for its strongest weekly performance since early September, up over 7%.
Bitcoin's Weekly Gains and Key Drivers
Several factors have boosted Bitcoin’s performance, including increased market speculation about a Trump win and Democratic nominee Kamala Harris’s promise to establish a regulatory framework for crypto. Furthermore, defunct exchange Mt. Gox delayed the timeline for returning Bitcoin to creditors, easing concerns of a major sell-off scenario.
Capital inflows into crypto investment products also improved during the past week, signaling renewed interest in digital assets.
The Trump Effect on Bitcoin and Crypto Markets
Trump's rising odds in betting markets, like Polymarket, along with favorable polling data, have bolstered Bitcoin sentiment. His pro-crypto stance, highlighted during his campaign, has been welcomed by the cryptocurrency community, as he promises to support Bitcoin’s future in America.
Although Kamala Harris has proposed creating a regulatory framework for crypto, the lack of detailed plans has left some uncertainty in the market. Still, the prospect of a more structured approach to digital assets under either administration is fueling optimism.
Altcoins Lose Momentum as Bitcoin Leads
While Bitcoin maintained its positive trend, other major cryptocurrencies lost momentum after recent gains. Ethereum (ETH) edged up 0.3% to $2,619.39, marking an 8% increase over the past week. Meanwhile, XRP, SOL, MATIC, and ADA traded flat or slightly lower but remained in the green for the week. Meme token Dogecoin (DOGE) saw the biggest surge, gaining over 9%.
Political Impact on Crypto: Republican Win Could Favor Coinbase and the Market
According to Citi analysts, a Republican victory in the U.S. elections would be the most favorable outcome for the broader cryptocurrency market, especially for companies like Coinbase. The Trump/Vance ticket has openly endorsed digital asset reform, and a Republican-controlled Senate could speed up crypto-friendly legislation.
Even if Republicans secure the Senate while Democrats control the House, it is seen as a bullish outcome for the crypto space. A divided Congress under a Harris presidency, however, would introduce uncertainty, making it more difficult to pass comprehensive digital asset reforms.
The U.S. election results, expected by November 8, will be crucial in determining the future regulatory landscape for Bitcoin and other cryptocurrencies.
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