Bitcoin is up more than 8% this week, just a few dollars away from Tuesday’s record high. The cryptocurrency initially surpassed $73,000 before paring gains on Wednesday as the crypto industry priced in a victory for Republican presidential candidate Donald Trump.
Cryptocurrency bulls predict Bitcoin will reach a new all-time high, previously set in March, in the days before the election. After increasing by more than $2,000 within a few hours, Bitcoin price decreased slightly and continued to fluctuate between $71,000 and $73,000. The coin rose 12% during “Uptober,” the nickname given to Bitcoin’s historically profitable month.
The broader crypto market is following a similar trend this week with Ethereum and Solana gaining 4% and 5% respectively. Dogecoin—the memecoin often associated with Elon Musk—has surged 23%, thanks to the billionaire’s backing mentioned of coins at many Trump rallies.
Spot Bitcoin exchange-traded funds saw strong inflows coinciding with Bitcoin’s price rally on Tuesday. ETFs raked in $870 million amid pre-election market volatility, the third-largest inflow since approval in January. Bitcoin hit all-time high above $73,000 in March after introducing these Bitcoin ETFs to the market.
The contest comes as Trump widens his lead over Vice President Harris on Polymarket, a cryptocurrency prediction market. With the election less than a week away, Polymarket bettors give Trump a 67% chance of winning, while traditional polls show the two tied — albeit tied. New evidence shows a large portion of transactions on the site is fake.
Both candidates are in the final stages of their campaigns, making a final push to woo undecided voters and encourage their supporters to get to the polls. On Sunday, Trump held a rally at Madison Square Garden at which Elon Musk talked about his involvement in Trump’s proposed Department of Government Effectiveness, or DOGE — a nod to Dogecoin.
Trump has made a significant effort to woo the crypto industry this election cycle, promising to make America the “crypto capital of the planet.” He founded his own cryptocurrency venture, spoke at this year’s Bitcoin conference in Nashville and vowed to SEC fire chair Gary Gensler on day one, among other things.
While Harris has a more moderate pro-crypto stance than President Biden, some analysts predict that Bitcoin prices could plummet if Harris wins. Transform Ventures CEO and crypto millionaire Michael Terpin, said the currency will continue to grow both ways.
“There’s so much momentum right now,” Terpin said Luck. “We’re at a point in the cycle where prices typically go up quite a bit. I just think a Trump victory will make things go faster, faster and higher.”
