Bitcoin surged on Monday, hitting a three-month high as speculation intensified about Donald Trump's possible victory in the 2024 election, pushing the token to record highs.
Writes UNN with a link to Investing.
The world's largest cryptocurrency has risen significantly over the past week amid polls and forecasts that show Trump's chances of winning are increasing, although analysts still consider the presidential race unpredictable.
Bitcoin rose by 1.1% to $69,007.1, approaching its all-time high of $5,000. Crossing the $70,000 mark will be a key signal for the token's growth. According to the latest polls and prediction markets, the chances of Trump's victory over Democratic candidate Kamala Harris have increased. Trump has been campaigning with pro-cryptocurrency rhetoric, promising support for bitcoin in the US, and accepting donations in cryptocurrency. Expectations of his victory have pushed traders to bet on more lenient regulation of cryptocurrencies in the country, as this topic is one of the most discussed in the industry due to a number of lawsuits from the Securities and Exchange Commission and the Department of Justice.
Kamala Harris also promised to create a regulatory framework for cryptocurrencies, but the details of her plan remain unclear. With the election coming up in a little over two weeks, markets are expecting a tense battle.
This prompted investors to look to safe assets, such as the dollar and gold, whose prices hit record levels on Monday. The latest capital flow data showed that institutional investors started buying cryptocurrencies again last week.
Along with bitcoin, other cryptocurrencies also grew significantly as market sentiment improved.
The second-largest cryptocurrency, Ether, gained 3.8% to reach $2,740.14, a nearly two-month high. SOL and ADA were the best performers among the altcoins, rising by more than 6% each, while XRP and MATIC added about 4%.
Among meme tokens, DOGE grew by 4.6%.
Recall
Last week, the price of bitcoin rose after Democratic presidential candidate Kamala Harris promised to support the regulatory framework for cryptocurrencies.