Bitcoin reached $66,000 in the last week. Market observers cited the upcoming US election as the reason for the rise. The question is whether the rally can be sustained.
Bitcoin's price hit $66,000 on Tuesday, a 5% gain over the past week on renewed bullishness over Donald Trump's campaign.
Although the price has fallen slightly, analysts predict that this is just the beginning of a new crypto rally.
Analysts at Bernstein say that the Bitcoin market has been linked to crypto bettors on the back of Donald Trump's candidacy for the US presidency.
“Bitcoin's recent strength is driven by the return of bitcoin's correlation to Trump election odds,” Bernstein analysts Gautam Chugani, Mahika Sapra and Sanskar Chindalia wrote in a note on Tuesday.
Trump has 13 percentage points the way Kamala Harris is Vice President at PolyMarket, a crypto prediction market.
Despite Trump's large lead on the site, Harris briefly elevated the former president after suggesting support for digital assets. At the time, Polymarket was in line with mainstream election polling data.
However, PollyMarket has returned to the trend of being at odds with mainstream polls.
In national polls, Harris leads by 2% Five thirty eight A pole is a pole.
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While Bernstein analysts expect the election outcome to have little impact on bitcoin in the long run, they say the price of bitcoin could reach $90,000 if Trump wins in November and fall to $30,000 if Harris wins.
Crypto elections
The industry is investing heavily in this year's elections.
Crypto celebrities have thrown their weight around this election cycle like never before. This led to spending hundreds of millions of dollars in lobbying to gain influence among the powers that be in Washington.
However, other factors are driving Bitcoin's price outside of the White House race.
On the institutional side, markets recorded $550 million in spot bitcoin exchange-traded fund inflows — more than half of the largest daily outflow ever recorded and the largest since early June.
Monday's massive inflow took cumulative bitcoin ETF outflows to over $19 billion, data From UK crypto fund Farside Investors shows.
This is far from the optimistic $32 billion that market analysts forecast by the top of 2024, when Bitcoin ETFs will be accepted in the US.
While Bitcoin ETFs lifted Bitcoin to a new peak of $73,000 in March, the market slowed significantly.
However, Bernstein analysts argue that this is a “gestational period” for the market.
Analysts say global asset managers are working hard to hack bitcoin ETFs to institutional players like private banks and wealth advisors.
“This gestation and distribution is reflected in the rapid inflows reflected in the price of Bitcoin,” the analysts wrote.
Crypto market movers
Bitcoin has gained 1.7% in the past 24 hours, trading at $65,660 at the time of writing. Ethereum rose 3.5% to trade at $2,616.
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Osato Awan-Nomayo Our Nigeria based DeFi representative. He covers DeFi and technology. To share tips or information about articles, please contact him here [email protected].
Related TopicsBitcoins ElectionDonald TrumpKamala Harris
