Key Points
- Excitement in prediction markets leads to a rally in spot Bitcoin prices, analysts believe.
- Significant ETF inflows are also fueling the ascendant trajectory for BTC.
Even though Bitcoin kicked off October with a price drop from around $64,000 to the $60,000 levels, Uptober is still on the table, as the coin's price picked up steam starting October 11.
Bloomberg analyzes Bitcoin's recent trajectory, highlighting that the markets are pricing in a potential victory for Donald Trump in the 2024 US elections.
Bitcoin's Rally Surpasses Other Assets in October
The publication notes that BTC is up about 13% in the past seven days.
At the moment of writing this article, BTC is trading above $67,000, up by 0.5% in the past 24 hours, following a recent price rally above $68,000, a level that has not been reached since July 29.
Bloomberg also highlighted that BTC's upward trajectory surpassed the ones of the global stock gauge and gold in October.
Despite gold that saw a surge below 5% this month, BTC is heading toward a 10% rise, according to official data as of October 17.
Crypto Markets Anticipate a Trump Victory
Bloomberg's recent article addresses the recent Bitcoin rally, stating that it's correlated to the victory of the pro-crypto Republican candidate for the US Presidency.
The publication brings up billionaire Stan Druckenmiller who cited crypto as being among the indicators that markets are pricing in a potential win for Trump next month.
Trump has been showing increased support for Bitcoin and crypto in 2024, becoming the first president to accept digital assets for his presidential campaign, and vowing to make the US the crypto capital of the planet. He also criticized the US government for selling its BTC reserves.
Just recently, official data reported that the Trump 47 joint fundraising committee raised around $7.5 million in crypto since June.
As Bloomberg noted, Trump's embrace of the crypto sector has led to Bitcoin's classification as a so-called Trump trade - one of a series of wagers predicted on his return to the White House.
As we also reported recently, Bitcoin's rally came alongside important shifts in prediction markets which revealed Trump's winning odds surging above 60% on October 16, while Kamala Harris' winning odds dropped below 40%. The rising chances for Trump coincided with a spike in Bitcoin's price above $68,000.
Co-founder of Cega, a crypto derivatives service provider, Arisa Toyosaki said that the excitement in prediction markets is leading to high levels of implied volatility and a rally in spot Bitcoin prices.
Toyosaki also mentioned the recent significant inflows into Bitcoin ETFs in the US which also feeling the coin's rally as well.
Continuous Inflows in US BTC ETFs
As we mentioned earlier today, the US Bitcoin ETFs saw four consecutive inflow days, starting October 11, and totaling around $1.6 billion since. This week alone, the crypto products recorded inflows of over $1.38 billion.
Of these four days, October 14 was the most notable one with inflows of almost $556 million, the biggest amount since June, according to SoSoValue data.
Kamala Harris' Crypto Stance
Bloomberg also analyzed the Democrat candidate, Kamala Harris' stance on crypto., saying that she adopted a nuanced position on digital assets, pledging to support a regulatory framework and industry growth under appropriate safeguards.
Bloomberg noted that he position was also received with optimism among crypto traders, in contrast with he huge crackdown under the Biden administration.
On September 22, Harris made her first public comments regarding crypto, promising to support digital assets and AI if elected.
Crypto - An Election Issue in 2024
Crucible Capital General partner Meltem Demirors recently said on Bloomberg Television that crypto's emergence as an election issue this year is driving significant attention to Bitcoin and the broader crypto industry and this attention is translated into sentiment. Sentiment leads to flows, Demirors, stated.
Also, in a Bloomberg Television interview today, billionaire Druckenmiller highlighted how the past 12 days are showing the markets convinced of a Trump win. He stated that this is mirrored in the bank stocks and crypto as well.
