Bitcoin is on fire! After last week's surge, the crypto bulls are eyeing the all-time highs of March, with prices jumping 11% to over $67,800. This Bitcoin rally is turning heads and sparking excitement among investors, many of whom think it points to a big win for pro-crypto Republican candidate Donald Trump in the upcoming U.S. presidential election.
Trump vs. Harris: Crypto's Role in the Election
As the race between Trump and Harris intensifies, cryptocurrency is emerging as a key issue. Trump has pledged to make the U.S. a global leader in crypto, turning Bitcoin into a “Trump trade” where investors speculate on his potential White House return. His strong support for digital assets aligns with a bullish Bitcoin trend and increasing activity in prediction markets, where bets on election outcomes are on the rise.
On platforms like Polymarket, Trump's odds have surged to 59.7%, with Harris trailing at 40%. PredictIt also shows Trump slightly ahead at 54%. This optimism among investors correlates with Bitcoin's rising price, suggesting a growing belief in a Trump victory.
Harris, however, offers a balanced approach, promising to support crypto growth with regulations that ensure safety. This contrasts with the more restrictive stance of the current administration, stirring cautious optimism among some crypto enthusiasts.
ETF Inflows Fueling the Rally
In addition to election-related excitement Arisa Toyosaki, co-founder of Cega, a crypto derivatives service, noted that the excitement surrounding prediction markets is contributing to Bitcoin's price volatility and recent rally.
Significant inflows into U.S. Bitcoin exchange-traded funds (ETFs) have added to the momentum, with net inflows exceeding $700 million since October 11. As of Thursday, Bitcoin's price stabilized around $67,260,
Despite the positive trend in prediction markets, polling remains tight, with Harris leading Trump by a slim margin of 1.6 percentage points in national polls. However, Trump has a slight edge in critical battleground states.