Bitcoin Investors Anticipate Market Surge with Potential Trump Election Win – Financial Times

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<p>The speculation of a second term for <a target="_blank" href="https://cryptoslate.com/people/donald-trump/">Donald Trump</a> is generating buzz around a possible Bitcoin boon, as Financial Times noted on July 5, referencing the insights of various market experts.</p>
<p>Financial Times observes the notion of a "Trump trade" gathering momentum in cryptocurrency circles thanks to Trump's apparently favorable crypto stance and policy implications.</p>
<p>A slew of factors including sales from Bitcoin miners and the regulatory measures from U.S. and German officials have recently muted Bitcoin's advances. Additionally, the expected disbursement of funds from the <a target="_blank" href="https://cryptoslate.com/companies/mt-gox/">Mt. Gox</a> liquidation has agitated the market, dipping Bitcoin's price below $54,000 for a while.</p>
<p>Yet, market analysts maintain a bullish outlook, suggesting Trump's potential election win could catalyze a Bitcoin upswing, possibly setting a new record by August and touching the $100,000 mark by the time polls close.</p>
<p>At the time of reporting, Bitcoin's price has seen a modest recovery, trading slightly beyond $56,000, as per the numbers from <em>CryptoSlate</em>.</p>
<h2>Trump: The Crypto Ally</h2>
<p>Per the report, the prospect of a Trump-led government, especially with a strong Republican Congress, is believed to pave a smoother regulatory path for cryptocurrencies.</p>
<p>Donald Trump is now being talked about as a significant crypto proponent. His recent engagement with crypto mining leaders at Mar-a-Lago and acceptance of campaign donations in cryptocurrency exemplify this stance. There's even chatter about Trump mulling over making Bitcoin a national reserve asset.</p>
<p>Market commentators argue that Trump's ardent crypto support could elevate the appeal of Bitcoin, propelling its value into new territories. There are speculations that Bitcoin could soar to $100,000 by Election Day if Trump secures a victory.</p>
<p>A Trump presidency also presents broader implications for the financial markets. Anticipated Trump-era measures such as higher immigration restrictions, increased tariffs, and tax cuts are likely to swell the U.S. deficit, which could elevate inflation and Treasury yields.</p>
<p>Geoff Kendrick, from Standard Chartered and heading the digital assets research, touched on the possibility of "fiscal dominance," where hefty governmental deficits coupled with debt could weaken the Federal Reserve's hold on inflation control.</p>
<p>Kendrick speculates that such a scenario might bode well for Bitcoin due to its ties with significant U.S. Treasury indicators. He posits that a steeper yield curve and a higher break-even than real yields might drive Bitcoin prices upward, positioning it as a safeguard against dwindling confidence in the U.S. Treasury sector.</p>
<h2>The Fluctuating Political Scene</h2>
<p>The FT suggests that should it become evident by end of July that President <a target="_blank" href="https://cryptoslate.com/people/joe-biden/">Joe Biden</a> will seek reelection, this might impact the likelihood of a Trump triumph, and in turn, potentially catapult Bitcoin to new record levels.</p>
<p>The analysis further comments on the "Trump trade" being contingent on Biden remaining Trump's rival come November. With RealClearPolitics Betting Average positioning Trump with a 55% win probability and Biden at 16.5%, it signals that Bitcoin supporters may retain their optimism as long as Biden stays in contention.</p>
<p>Conversely, if Biden exits and a fresh candidate considered more capable of challenging Trump enters the fray, this could dampen Bitcoin's ascent.</p>
<p>Significant bets on Biden's possible withdrawal from the race have flooded betting platforms like Polymarket, with stakes exceeding $11 million on this very prediction.</p>
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    <h6>Bitcoin Market Figures</h6>
    <p>As of this press time <span class="press">10:52 pm UTC on Jul. 5, 2024</span>, <a target="_blank" href="https://cryptoslate.com/coins/bitcoin/" title="Bitcoin">Bitcoin</a> holds the number one position by market capitalization with a <strong>2.85% downturn</strong> in the past day. Boasting a market cap of <strong>$1.12 trillion</strong> and a 24-hour trade volume of <strong>$57.17 billion</strong>. <a target="blank" href="https://cryptoslate.com/coins/bitcoin/" title="Bitcoin">Find out more about Bitcoin ›</a></p>
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      <h6>Cryptocurrency Market Overview</h6>
      <p>Recorded at <span class="press">10:52 pm UTC on Jul. 5, 2024</span>, the overall crypto market cap stands at <strong>$2.07 trillion</strong> with a 24-hour trading volume of <strong>$135.31 billion</strong>. Bitcoin's current dominance index is at <strong>53.99%</strong>. <a target="_blank" href="https://cryptoslate.com/coins/">Explore the crypto market further ›</a></p>
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<h6>Referenced in this Report</h6>
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