Bitcoin will hit a rate high regardless of the outcome of the US presidential election. Why?
There are just over eleven days left until the election of a new US president, and the vote will take place on 5 November. Among cryptocurrency enthusiasts, there is an opinion that the victory of Republican Donald Trump will play into the hands of the industry and lead to a noticeable increase in the value of Bitcoin. At the same time, the election of Democrat Kamala Harris as president could even lead to a prolonged market correction. However, such reasoning may be a delusion, because the price of BTC will go to a new all-time high despite any of the possible outcomes of the event.
The growth of cryptocurrencies is counted on, including some well-known participants of the financial market. These include billionaire and hedge fund manager of the Tudor Investment Corporation Paul Tudor Jones.
The day before, he took part in a programme on CNBC, where he commented on the current situation in the economy. According to him, “all roads lead to inflation”, i.e. the markets may still face serious problems.
Billionaire Paul Tudor Jones
That is why the expert holds long positions in gold and Bitcoin. In other words, Paul buys the precious metal and the first cryptocurrency, counting on their growth.
How will the US presidential election affect Bitcoin?
Traders have long perceived the likely victory of Republican Donald Trump as a bullish factor for the industry. The reason for this stance is his favourable stance towards crypto and his promises to make the US a leader in the field.
In addition, Trump previously became the first US president to conduct a transaction on the Bitcoin network. He also wants to stop the sale of coins confiscated by the U.S. government and approve an adequate regulatory framework for digital assets.
Former US President Donald Trump buys burgers with bitcoins
At the same time, Democrat Kamala Harris limited herself to general statements about her willingness to support the crypto industry along with the artificial intelligence niche, as well as protect investors who will connect with digital assets.
Similar narratives in the two election campaigns tipped the scales of public opinion in favour of the Republicans. However, some experts believe that the asset will grow in any case, as it is primarily influenced by macroeconomic factors.
This is the opinion of Geoff May, chief operating officer of the crypto exchange BTSE. Here is his commentary, as quoted by CoinDesk.
Both presidential candidates have adopted cryptocurrency-friendly positions. This is done to appeal to voters, however it is hard to say if their promises will come true. While it’s already clear that the market is reacting positively to the upcoming changes in administration and policy – whether it’s Harris or Trump, traders and investors believe that any change will be for the better.
The expert continues.
The fact that what is happening coincides with the Fed’s first interest rate cuts in four years and the recent rise in stock prices only reinforces the view of Bitcoin’s ability to surpass its all-time high and reach the $80,000 mark.
Users of decentralised platform Polymarket are increasingly leaning towards a Trump victory
Options traders are already increasing their bets that Bitcoin will hit new highs by the end of November. This is evidenced by the rising implied volatility of options expiring on election day.
The U.S. presidential election is likely to cause Bitcoin price volatility to spike on the spot as well, causing some market players to traditionally panic and get rid of their own coins. That’s certainly not what Tesla will do, though. Last week, it was revealed that Ilon Musk’s company moved 11,509 BTC – its entire bitcoin balance – to new cryptocurrency wallets.
The coin move appeared to be the company’s first interaction with crypto wallets since it sold most of its own crypto assets in 2022. With that in mind, Tesla’s transactions have piqued the interest of the blockchain community. Some of its representatives have even suggested that the company is allegedly preparing to finally get rid of its bitcoins.
According to Arkham analysts, 11,509 BTC Tesla is now distributed among seven wallets. The largest of them holds 2,109.3 BTC, The Block reported.
Tesla’s Bitcoin Balance History
As of today, Arkham experts estimate Tesla’s total cryptocurrency balance at the same 11,509 BTC. At the current exchange rate, this amount is equivalent to $773 million.
Actual bitcoin balance on Tesla’s wallet
At the beginning of 2021, the company announced a large investment in Bitcoin for 1.5 billion dollars, with its balance reaching 43 thousand BTC at the peak.
Tesla is currently the fourth largest public corporate holder of Bitcoin, behind MicroStrategy, Marathon Digital and Riot Platforms.
Largest publicly traded companies by number of Bitcoins purchased
Experts are inclined to believe that Bitcoin and other representatives of the cryptocurrency market will be able to show good results regardless of the outcome of the US presidential election. One way or another, the current situation in the economy hints at a further reduction of pressure by lowering the base interest rate. And this traditionally leads to the activation of investors, who are looking for more and more profitable instruments for investing funds.
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