Crypto Market On Fire: What’s Sparking Today’s Explosive Growth?

crypto

Bitcoin has been having a solid run, hitting $73,490 today, registering a seven-month high. This latest momentum brings the top crypto asset closer to its all-time peak, and many experts expect a new record price with the US presidential elections days away.

The world’s top digital currency isn’t the only digital asset enjoying an uptrend. Solana is now trading at $180, and Dogecoin is up 8%. Some of the major altcoins are also up, and even Michael Saylor’s MicroStrategy and the company’s stocks are enjoying a good run, hitting $267.89, a 52-week high.

So, what’s up with crypto, and why is the market enjoying a bullish sentiment lately?

Image: Zerocap

Republican’s Donald Trump Leads The Surveys

There are plenty of reasons why crypto has been active and surging lately. One apparent reason is the Republican presidential candidate Donald Trump’s lead in the betting markets.

Trump is more vocal in supporting crypto and community initiatives compared to his election rival, Kamala Harris, although there are moments that Harris also, somehow, indirectly suggested that she’s open to adopting crypto in her administration once elected.

BTCUSD trading at $72,210 on the daily chart: TradingView.com

Strong Machinery

Trump has the support of popular tech entrepreneurs, including Elon Musk, and that says a lot about his political campaign machinery. Musk, the Tesla and SpaceX big boss, is an avid crypto supporter.

In short, the market is picking up in anticipation of Trump’s possible victory next Tuesday. This, according to the latest survey by Polymarket, which has the former US president ahead with 67% chance of winning compared to Harris’ 33%.

Trump leads the survey. Source: Polymarket

The anticipation of Trump retaking the Oval Office is seen as a bullish sign for many thanks to the former president’s remarks on proposed policies and regulations on Bitcoin and crypto.

Although Trump initially expressed skepticism about crypto and Bitcoin, he immediately changed his position in 2024 to court big donors. At a conference last July, Trump commented that he envisions the United States to become the “crypto capital” of the world.

Bitcoin As Crypto Market Bellwether

For most industry watchers, Bitcoin’s impressive performance is the most obvious reason for the broader market’s enthusiasm. Traditionally, Bitcoin has been the barometer of sorts that determines the crypto landscape’s direction and health: if Bitcoin moves up, most major altcoins join the surge.

This week, Bitcoin finally broke the $70,000 level after consolidating at the $68,000 level for four months. BTC is up roughly 8% to breach past the key $73k barrier — its highest value since March 14th.

Meanwhile, Bitcoin’s current run can be attributed to increased inflows into the spot Bitcoin ETFs. These ETFs have enjoyed three weeks’ of net inflows, and it’s expected to repeat this week.

Featured image from Getty Images, chart from TradingView

Exit mobile version