Eighty per cent of the 9,375 crypto investors surveyed believe that Bitcoin will rise if US presidential candidate and business magnate Donald Trump is re-elected, said an AMBCrypto report.
According to the report, Bitcoin will potentially reach $80,000, surpassing its previous high of $73,780.
Addressing a gathering at the Bitcoin2024 Conference in Nashville last week, Trump promised to make the US a “Bitcoin superpower” and “crypto capital of the planet,” if re-elected president.
According to reports, Bitcoin exited from a six-week high as traders speculated that the US may sell seized tokens days after the former president pledged to create a government stockpile of the cryptocurrency if re-elected. For over 45 days before July 27, BTC had struggled to touch $69,000. However, immediately after Trump’s speech, BTC breached $69,000, albeit with a low trading volume. After almost hitting $70,000 on Monday, it declined by around 2.2 per cent to $66,482 in New York.
“Bitcoin has seen considerable volatility recently, largely driven by former President Trump’s proposal to designate Bitcoin as a strategic asset for the US. This unexpected announcement caused significant price fluctuations, with Bitcoin initially spiking before experiencing a subsequent decline. The market reacted swiftly, leading to a surge in trading volume and heightened market activity,” said CoinSwitch Markets Desk.
‘A strategy to reduce national debt’
Additionally, US Senator Cynthia Lummis has introduced a proposal for the government to purchase one million Bitcoins as a strategy to help reduce the national debt. Lummis contends that Bitcoin’s long-term potential as an appreciating asset could provide a substantial financial advantage to the country over time.
“These political and market developments underscore the growing recognition of Bitcoin’s potential and its evolving role in the global financial landscape,” it further said.
The AMBCrypto report also found that crypto traders are betting on the US presidential race using PolitiFi tokens, with tokens linked to Donald Trump showing big price changes. The MAGA token soared 51 per cent in just two hours after news of Trump’s attempted assassination broke out. As of July 19, it was trading at $6.19, up 5 per cent for the week. The weekly trading volume for MAGA tokens jumped from $10-15 million in February to $120 million in June.
Mridul Gupta, Founding Partner, CoinDCX, said, “The outcome of the US presidential election could have significant implications for the crypto market. Should Trump win the election, we anticipate a notably positive impact on Bitcoin and the broader crypto market. His commitment to making the US the “crypto capital of the world” aligns with a favourable regulatory environment and increased institutional interest, which could propel Bitcoin to new heights.”
Gupta added that in this scenario, Bitcoin is poised for a potential bull run, driven by favourable market conditions and speculation surrounding Russia’s consideration of crypto for cross-border payment further elevating its value on the global stage.
“We’re confident about Bitcoin’s future trajectory and expect a notable upward swing shortly. Overall, Trump’s presidency could enhance the market’s confidence, fostering growth and stability in the cryptocurrency ecosystem both in the US and worldwide.”
‘Republican Party is better for regulating crypto’
Furthermore, AMBCrypto stated that 46 per cent of crypto investors think the Republican Party is better for regulating crypto, while 37.4 per cent prefer the Democratic Party. However, 16.6 per cent are unsure about both parties and doubt their support for crypto regulations. Among the 46 per cent of investors who support the Republican Party, many are long-term investors anticipating market’s growth.
Twenty five per cent of crypto discussions on social media center around the US elections, especially Trump’s influence on Bitcoin. “Despite recent sell-side pressure, Bitcoin’s recovery to $66,000 has seen 86 per cent of investors remain profitable, with significant movements of Bitcoin into cold wallets, indicating bullish sentiment. The Long Term Holder market value to realized value (MVRV) might hit 3.9, indicating potential threefold profits for long-term investors,” said the report.