As the United States gears up for the upcoming presidential election, Bitcoin’s price fluctuations appear to be increasingly linked to the race, according to two leading figures in the cryptocurrency industry. On October 30, Bitcoin soared past $70,000 for the first time since June, nearly surpassing its all-time high of $73,750, only to halt just shy of the record.
Cory Klippsten, the CEO of Swan Bitcoin, spoke to Cryptopolitan, suggesting that the recent price surge is likely a reflection of investor sentiment surrounding prospective regulatory policies, legal clarity, and potential Bitcoin adoption by the federal government.
“The price surge in Bitcoin, bringing it tantalizingly close to its all-time high, can be attributed to a blend of investor optimism surrounding the election, triggered by active engagement from both campaigns, and a significant influx of capital into Bitcoin ETFs,” Klippsten stated.
In October, the 11 U.S.-based spot Bitcoin exchange-traded funds (ETFs) experienced consecutive inflows, hitting a near-record total of almost $900 million on October 30, marking the second-highest ever, as per data from Farside Investors.
However, a significant shift occurred on November 4, the day preceding the election, as ETFs posted their second-largest day of outflows, with $541.1 million leaving the market. This reflects the highest outflow since May 1, when $563.7 million was recorded.
The observation of candidates’ views on cryptocurrency regulation has gained increasing prominence leading up to the 2024 election. According to a survey conducted by crypto advocacy group, The Digital Chamber, about 26 million voters could form a “crypto voting bloc,” considering pro-crypto policy as a crucial factor in deciding their vote.
Klippsten indicated that the discussion of crypto by both candidates and their campaigns is likely fueling investor optimism for a potential crypto-friendly environment in the U.S. post-election.
“Donald Trump has shown strong support for Bitcoin, pledging to transform the U.S. into a leading Bitcoin hub and even proposing the establishment of a national Bitcoin reserve,” Klippsten noted.
“Kamala Harris has taken a more balanced stance, with many industry insiders predicting a period of regulatory clarity and support under her potential administration,” Klippsten continued.
Former President Donald Trump has voiced support for the crypto industry, hinting at his ambition to make the U.S. the “crypto capital of the planet” and transform Bitcoin into a “superpower of the world.”
Vice President Kamala Harris, although yet to reveal an official stance on crypto, refers to “digital currencies” in her 2024 policy platform and outlines plans to “encourage innovative technologies like AI and digital assets while protecting our consumers and investors.”
Greg Magadini, the director of derivatives at Amberdata, suggested to Cryptopolitan that the post-election Bitcoin price could swing in either direction, depending on the election outcome.
“Key price levels are $60,000, a dip if Kamala wins, or a surge to $75,000/$77,000 if Trump wins, bringing spot right back to the all-time highs, then surpassing them, as election enthusiasm breaks last week’s high,” Magadini noted.
As vote-counting proceeds, Bitcoin has surged approximately 9.46% in the past 24 hours, hitting an all-time high of $75,000, with projections indicating a likely victory for former President Donald Trump.
