Bitcoin (BTC) experienced a notable surge, briefly topping $68,000, driven by positive U.S. election predictions. The excitement, however, saw Bitcoin settling around $67,500 during the early Asian trading hours on Monday.
Market Reaction to Biden’s Announcement
The broader crypto market also saw gains, with the CoinDesk 20 index, which tracks the largest crypto tokens minus stablecoins, increasing by 1.25%. President Biden’s announcement of not running in the upcoming election was perceived as potentially favorable for the digital asset industry, boosting sentiment among some traders.
BTC Leads Market Gains
Bitcoin’s rise started late Sunday after Biden’s announcement on X (formerly Twitter) about not contesting the upcoming November elections. This development caused the odds for Republican candidate Donald Trump to drop from 71% to 65% on the crypto betting application Polymarket, while Vice President Kamala Harris’s odds rose from 16% to 30%.
Singapore-based crypto research firm Presto noted, “Biden’s withdrawal has opened up a possibility where, regardless of who sits in the White House, the U.S. government may embrace a more constructive stance towards the digital asset industry after November. Whether Harris or any other contenders will pursue such a path remains to be seen, but the optionality that hardly existed before is now there.”
Altcoins Follow BTC’s Lead
Following Bitcoin’s lead, major cryptocurrencies also experienced gains. Ether (ETH) briefly crossed $3,500, while Cardano’s ADA and Solana’s SOL added up to 5%. Dogecoin (DOGE) saw a significant jump of more than 8% before paring gains.
Trump’s Influence on Crypto Sentiment
Trump’s favorable view of cryptocurrencies has garnered substantial support from industry players in recent months. He is scheduled to appear at the Bitcoin 2024 conference in Nashville later this week, further fueling market optimism.
“We would expect the market to rally higher as Trump’s key economic policy would be a lower interest rate and cheaper borrowing costs. This would surely boost all risky assets, including BTC,” shared Lucy Hu, senior analyst at Metalpha, in a Telegram message. “In the mid-long term till the 2025 election, we would expect BTC to continue to rally,” Hu added.
Stay updated with the latest in the crypto market as political developments continue to influence market dynamics.