According to one firm, the potential for a crypto-friendly government coming into power is boosting sentiment among professional traders.
Bitcoin (BTC) briefly rose above $68,000 before falling to $67,500 at the start of Asian trading hours on Monday, driven by bullish sentiment among traders optimistic about a favorable U.S. election outlook. Major cryptocurrencies followed BTC's lead, with Ether (ETH) briefly crossing $3,500, Cardano’s ADA and Solana’s SOL gaining up to 5%, and Dogecoin (DOGE) jumping more than 8% before paring gains. The CoinDesk 20 (CD20), a liquid index tracking the largest crypto tokens minus stablecoins, rose 1.25%.
BTC gains began late Sunday after U.S. President Joe Biden announced on X that he would not run in the upcoming November elections. This development dropped the odds of Republican candidate Donald Trump from 71% to 65% on the crypto betting application Polymarket during Asian morning hours on Monday, while the odds for Vice President Kamala Harris increased from 16% to 30%.
“Biden’s withdrawal has opened up the possibility of a more constructive stance towards the digital asset industry regardless of who sits in the White House after November,” Singapore-based crypto research firm Presto noted in a Monday report to CoinDesk. “Whether Harris or any other contenders will pursue such a path remains to be seen, but the option that hardly existed before is now there,” Presto added.
Trump's favorable view of cryptocurrencies has garnered significant support from industry players in recent months. He is scheduled to speak at the Bitcoin 2024 conference in Nashville later this week, further boosting market sentiment. “We expect the market to rally higher as Trump's key economic policy would be lower interest rates and cheaper borrowing costs, which would surely boost all risky assets, including BTC,” said Lucy Hu, senior analyst at Metalpha, in a Telegram message. “In the mid to long term until the 2025 election, we expect BTC to continue to rally,” Hu added.
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