Bitcoin price “holds its breath” waiting for the 2024 US election results

Financial experts say the results of the US presidential election will directly affect the price outlook of the Bitcoin cryptocurrency.

Bitcoin hits 3-month high

Bitcoin, the world's largest cryptocurrency by market capitalization, hit a three-month high of nearly $68,000 in mid-October 2024. One of the main drivers of this surge was the US approval of Bitcoin spot exchange-traded funds (ETFs). This was a major step forward for the cryptocurrency market, as it allowed investors to gain easier access to Bitcoin without having to own it directly. ETFs simplify the process of investing in Bitcoin and attract large institutional investors, thereby significantly increasing market demand. Bitcoin ETFs have been long-awaited, and the official US approval of these ETFs has created a positive wave in the financial market. These ETFs will be listed on major exchanges, allowing investors to easily buy and sell Bitcoin like regular stocks. This not only helps boost capital inflow into the crypto market but also increases Bitcoin liquidity.

These ETFs will be listed on major exchanges, allowing investors to easily buy and sell Bitcoin like regular stocks. Photo: Watchguru.

According to data from Farside Investors, more than $2.1 billion was invested in 11 US-listed Bitcoin ETFs last week alone. Notably, this was a week in which all sessions recorded continuous net inflows into these funds. Among them, BlackRock's IBIT fund led the way with a net inflow of up to $1.14 billion, while Fidelity's FBCC fund also attracted more than $300 million. Last Friday, the US Securities and Exchange Commission (SEC) granted fast-track approval to 11 exchange-traded funds (ETFs) related to spot Bitcoin, allowing these funds to list and trade options tied to the spot price of Bitcoin on the New York Stock Exchange (NYSE). In addition to being supported by ETFs, expectations about the US Federal Reserve's monetary policy also contributed significantly to the increase in Bitcoin's price. With the prospect of the Fed cutting interest rates in the near future, investors appear to be shifting capital flows to riskier assets like cryptocurrencies, adding to the appeal of Bitcoin.

Bitcoin and the US Election

The rise in Bitcoin prices is also closely linked to the political situation in the US, especially predictions about the upcoming presidential election in 2024. Some experts believe that if former President Donald Trump is elected, the price of Bitcoin could continue to rise, even surpassing the $90,000 mark. This is explained by the fact that Trump's policies tend to be friendly to the financial market and cryptocurrencies, creating favorable conditions for investors. During his previous term, he reduced corporate taxes and loosened financial regulations, which helped boost growth in the stock market. With this trend, investors can expect that Trump will continue to facilitate investments, including cryptocurrencies like Bitcoin.

If former President Donald Trump is elected, Bitcoin prices could continue to rise, even surpassing the $90,000 mark. Photo: cryptoslate.

When Mr. Trump was president, the financial market had many periods of strong growth, especially in the period before the pandemic. This created expectations from investors that Trump would bring a new boom to the markets, including cryptocurrencies. In addition, Mr. Trump also has a view of reducing government intervention in economic sectors. If elected, it is likely that he will reduce regulations related to cryptocurrencies, allowing the industry to develop more freely.

Earlier this week, US Vice President Kamala Harris, a presidential candidate, pledged to significantly improve the regulatory environment for cryptocurrency companies in the US. This is a rare time for Harris to publicly speak out on the sector, while her Republican rival Donald Trump has repeatedly expressed his ambition to turn the US into the "cryptocurrency capital of the world". Under President Biden, the US Securities and Exchange Commission (SEC) has adopted a strict regulatory policy towards the cryptocurrency industry, taking more than 100 regulatory actions against companies in the industry, creating many challenges for crypto businesses.

On the other hand, if Vice President Kamala Harris wins, the market could face more difficulties. Experts predict that Bitcoin prices could plummet to around $30,000 if Harris implements stricter cryptocurrency regulatory policies. This reflects the uncertainty about the direction of the cryptocurrency market under different administrations, which is also a factor that investors are closely monitoring the political situation.

Baogiaothong.vn

Source: https://www.baogiaothong.vn/gia-bitcoin-nin-tho-ngong-ket-qua-bau-cu-my-2024-192241021221600795.htm