Bitcoin Sees “The Trump Boost”, Reaches Almost $68k Before Plunging
Bitcoin prices hit an almost 3 months high, rising to over $68,000 with a 8% increase today.
Standard Chartered analyst Geoff Kendrick says Republican presidential candidate Donald Trump is expected to trigger “The Trump Boost,” propelling the leading cryptocurrency to $74,000 before the election.
Bitcoin (BTC) experienced a dramatic price swing during the U.S. morning hours on Tuesday, Oct. 16th, 2024. The cryptocurrency surged to a near three-month high of $68,800 before plummeting back to the $67,000 level, creating a characteristic “upside down V” pattern on price charts.
BTC was trading at $67,900, down 0.4% over the past 24 hours and 3.3% lower than its session high reached only an hour prior. The broader CoinDesk 20 Index also mirrored this negative sentiment, declining by 1.3% over the last 24 hours. Notably, Solana (SOL) and Cardano (ADA) underperformed Bitcoin within the index.
Bitcoin Price Action in The Past Week
Despite this unsettling morning activity, Bitcoin remains 8% higher over the past week. Kendrick cites Polymarket’s prediction that Trump now has a 56.9% chance of winning the November election, marking his highest probability of winning since Joe Biden dropped out of the Democratic candidacy.
Furthermore, Kendrick points to the increasing likelihood of a GOP sweep of Congress. He calculates that if Trump secures the presidency, there is a 70% chance he will govern with a Republican-led House and Senate. This political landscape, with its potential for pro-crypto policies, could be driving the bullish sentiment around Bitcoin and the broader cryptocurrency market.
However, the volatile price action underscores the inherent risk associated with cryptocurrencies. The rapid ascent and subsequent decline demonstrate the market’s susceptibility to rapid changes in sentiment, influenced by factors such as political events, economic indicators, and regulatory news. While the potential for gains remains enticing, investors must remain cautious and aware of the market’s volatility.
Trump Effect on Bitcoin Price
In the X video posted on the 16th of October, Trump directed people to the website of his new crypto project, World Liberty Finance. He then declared “Crypto is the future”, urging U.S. citizens to “embrace this incredible technology and lead the world in the digital economy.”
This video sparked bullish sentiments for the world’s most valuable cryptocurrency which saw its price surge upward to $67,900 before plunging back down quickly to $65,000, however, BTC is currently trading at $67,920, according to coinmarketcap.
This latest surge comes just two months after a panic-induced sell-off that saw Bitcoin drop more than 20 percent in value over just a few days.
Crypto betting platform, Polymarket, has given Trump a 56% chance of winning the presidency again.
