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Highlights
- Bitcoin gains momentum amid US political shifts.
- Traders eye potential regulatory changes under Trump's possible return.
- Rising demand for Bitcoin ETFs signals growing interest in crypto.
Bitcoin traders are closely watching the political landscape in the United States, anticipating significant changes in cryptocurrency regulation if Donald Trump returns to the White House. With the possibility of more favorable conditions for digital assets under a Trump administration, traders are positioning themselves for what could be a major shift in the market.
Bitcoin has experienced a notable surge in the past week, reaching a peak of $69,474, marking a significant rise of over 60% this year. This momentum places the cryptocurrency just shy of its all-time high of $73,797. Although prices eased slightly to $67,314, there are expectations that Bitcoin could hit $80,000 in the coming weeks, particularly if Trump wins the upcoming presidential election.
The recent rally has been driven by speculation that Trump will implement more crypto-friendly policies, with his campaign promising to transform the U.S. into the "crypto capital of the planet." Democratic candidate Kamala Harris has also expressed support for a regulatory framework for digital assets, although her stance is seen as more cautious compared to Trump's bold promises.
Currently, the cryptocurrency sector faces significant regulatory challenges under the administration of President Joe Biden. The Securities and Exchange Commission (SEC) has taken a hardline approach, with a focus on regulating the market through enforcement actions. A prominent example of this was the SEC's accusation against DRW Holdings’ crypto division, Cumberland DRW, which allegedly operated as an unregistered dealer for more than $2 billion in crypto assets.
A Trump administration, however, is viewed by many as a potential turning point for the industry. Lisa Wade, chair of the Digital Economy Council of Australia, highlighted the impact of current regulations on the crypto market, noting that a shift in leadership could provide much-needed clarity and foster growth. She stated that crypto's credibility as a financial instrument could be bolstered with bipartisan support, leading to its mainstream acceptance.
Trump himself has already ventured into decentralized finance, promoting World Liberty Financial, a blockchain-based financial venture founded by his business partners. This venture, which recently began selling its token to qualified investors, demonstrates Trump's direct involvement in the crypto space.
One indicator of growing interest in Bitcoin is the rising demand for U.S. spot Bitcoin exchange-traded funds (ETFs), which have attracted over $20.7 billion in net inflows since their launch in January. In recent days, $2.4 billion has flowed into these ETFs, signaling heightened interest among traders.
As traders anticipate a potential breakout in Bitcoin prices, many are sitting on the sidelines, waiting for the right moment. According to BTC Markets, Australia’s largest crypto exchange, nearly half of its users are monitoring the market, expecting higher prices before making any moves. This cautious optimism is evident in the options market, where bets on Bitcoin reaching $80,000 by the end of November have increased.
With the political landscape playing a key role in shaping the future of cryptocurrency regulation, traders are preparing for what could be a pivotal moment for Bitcoin and the broader digital asset market.
