Bitcoin steadied near recent peaks on Thursday, as Donald Trump’s victory in the 2024 presidential election sparked sharp gains in cryptocurrencies on the prospect of friendlier crypto regulations.
The Republican party won a majority in the Senate, and was also seen leading in the House of Representatives. A Republican sweep in Congress presents a clear path for Trump to enact major policy changes.
Bitcoin fell on Tuesday, extending recent declines as anticipation of a tightly contested presidential election saw traders remain largely wary of speculative assets such as cryptocurrencies.
Trump was regarded as the more favorable candidate by crypto markets, given that he has presented a largely pro-crypto stance in recent campaigning. Harris, on the other hand, has pledged to a crypto regulatory framework, but has not elaborated on her stance towards the industry.
These are candles that will show extremely large growth, Mow believes, and will eventually lead Bitcoin above the $1 million price mark. The key reason why BTC is bound to rise violently and cause those massive green candles to appear is that “Bitcoin has been coiled so tightly,” per JAN3 boss Mow.
This trade picked up in recent weeks as prediction markets largely favored a Trump victory, while polls pointed to a tightly contested election. Analysts said the election was still too close to call.
The world’s largest cryptocurrency was boosted largely by growing speculation that Donald Trump will beat Kamala Harris in the upcoming election, with voting set to take place on November 5.
Crypto prices took some support from improved risk appetite after Israel’s attack on Iran was less severe than feared. Sentiment was also slightly aided by Hong Kong proposing a tax break for crypto and digital assets.
Bitcoin’s price moved little on Friday, while broader crypto prices retreated as appetite for risk-driven assets remained weak amid uncertainty over a tight U.S. election and high interest rates.
Crypto trading volumes were also mostly subdued amid increased risk aversion, while overnight losses in stock markets also provided middling cues to crypto markets. Most altcoins also tracked muted moves in Bitcoin, while Solana rallied past its peers on increased activity on the blockchain.
