As the US presidential election nears, crypto traders and analysts speculate a Donald Trump victory could significantly boost Bitcoin, per the Financial Times.
Despite post-Halving rally hopes, Bitcoin faces challenges since April—US and German asset sales and a $9 billion Mt Gox overhang. Market talk centers on a potential “Trump trade” lifting Bitcoin later in 2024.
Post-Halving in April, Bitcoin fell 20% in a month amid factors like $15 billion in governmental sales and hedge funds dampening volatility. Traders seek a catalyst for Bitcoin’s next move up.
Trump’s viewed as crypto-friendly, with optimism growing about his victory benefiting the industry and regulations. Analysts suggest Trump’s energy policies could aid crypto mining. Concerns linger over Biden’s past crypto tax proposals.
Potential Trump policies—higher US deficit, tariffs, and tax cuts—could raise inflation and Treasury yields, influencing Bitcoin as a hedge, notes Standard Chartered’s Geoff Kendrick.
Impact of a “Trump trade” on Bitcoin hinges on Trump’s election rival. RealClearPolitics Betting puts Trump at 55%, Biden at 16.5%. Biden staying could boost Bitcoin bulls; a new contender may stymie gains. Narratives and perceptions drive market sentiment, potentially bolstering Bitcoin on belief in a Trump win.
Following a 6.4% pullback from its record high of $111,980, Bitcoin has stirred debate among analysts about what comes next.
Japanese investment firm Metaplanet has made another bold move in the crypto space, acquiring 1,088 more Bitcoins in its latest purchase, and pushing its total holdings to 8,888 BTC—valued at over $930 million at current prices.
As more corporations rush to add Bitcoin to their balance sheets in hopes of replicating the success of early adopters, concerns are growing that many of these firms may not have the resilience to endure a sustained crypto downturn.
Popular crypto analyst Il Capo of Crypto has issued a cautionary outlook for the digital asset market, warning of deeper corrections ahead as macroeconomic pressures return to the spotlight.