Bitcoin Jumps Higher as Trump Lead Widens
17 Oct, 2024 ● Crypto News
The price of Bitcoin surged to its highest point in over two and a half months, coinciding with an increase in former U.S. President Donald Trump's odds of winning the upcoming election.
Over the past week, Bitcoin's price jumped nearly 10%, surpassing $68,200 for the first time since late July, according to data from TradingView.
The rally followed a sharp rise in Trump's lead over Vice President Kamala Harris on a prominent decentralized prediction market.
As of 11:41 am UTC on Oct. 16, Polymarket data showed Trump's odds of winning the presidential election at 60.2%, while Harris' chances had dropped to 39.8%.
Trump is generally viewed as a more innovation-friendly candidate for the cryptocurrency industry, while some investors fear a potential Harris presidency could impose stricter regulations, potentially hindering blockchain innovation.
Economist Peter Schiff, however, criticized the current Bitcoin rally, calling it a “meaningless, Trump-inspired” surge.
In an Oct. 16 X post, he stated:
“While everyone is focused on the meaningless, Trump-inspired #Bitcoin pump, they’re missing the significance of #gold hitting another record high, above $2,680. Bitcoin may be up more, but it’s remained range-bound for seven months, as gold sets one record high after another.”
The odds on Polymarket flipped in Trump’s favor on Oct. 4, reversing the trend seen in September.
By Oct. 12, Trump had a lead of over 10 points, as reported by Cointelegraph.
Bitcoin's price hit a low of $60,300 on Oct. 10, shortly after Trump took the lead.
Since that monthly bottom, the price has climbed more than 13%.
Other industry experts, like Thomas Fahrer, CEO of the crypto reviews platform Apollo, also noted the correlation between Trump's election odds and Bitcoin's price. In an Oct. 16 X post, he observed:
“For every 1% rise in Trump’s probability of winning, Bitcoin price rises by $1K.”
The increase in Trump’s odds appears to directly impact crypto investor sentiment.
On Oct. 12, when Trump's lead widened to 10 points on Polymarket, the Crypto Fear & Greed Index shifted from "fear" to "neutral."
Since then, the index has risen to 73, indicating "greed" among investors.
The Crypto Fear & Greed Index measures market sentiment using multiple factors.
Sources:
https://cointelegraph.com/news/bitcoin-price-2-5-month-high-schiff-trump-pump
https://polymarket.com/event/presidential-election-winner-2024?tid=1729077305396
https://x.com/PeterSchiff/status/1846490459692036190
https://x.com/thomas_fahrer/status/1846507807211950548/photo/1
