The Consumer Finance Institute has revealed that around 20% of American adults own at least one cryptocurrency, which is why it has become the center of the US Presidential Election in 2024. And now, as the 2024 elections are just three weeks away, the Bitcoin price has suddenly turned bullish, gaining more than 3.8% in the last 24 hours. With this, it has become the tenth biggest asset in the world with a $1.34 Trillion market cap per CoinmarketCap data.
Why is Bitcoin Price Rising With US Elections?
In the last few days, Bitcoin has gained a good price momentum, hitting a three-month high at $67.8K after a 9.45% surge over the week. More importantly, this happened just weeks before the US election, creating many speculations around a connection between these and Bitcoin price. In this year’s election, the crypto industry has become the center of attention, aiding its hype. However, that is not the only cause, as the BTC price has also surged previously during these election times.
A trading QCP Capital reported that this similar moving pattern was also visible during the 2016 and 2020 US elections. As per the report, during 2016, Bitcoin traded in a very tight range for three months but began to rally three weeks before the election days. At that time, BTC was valued at $600 but doubled by January’s first week.
In 2020, the BTC price struggled for months but began to rally three weeks before the election. As a result, it achieved a high of $52K by January from the pre-election value of $11k. So, the same might be happening right now.
For now, there are four main reasons why the Bitcoin price is rising before the 2024 Elections, as confirmed by Standard Chartered’s Geoff Kendrick. He even forecasted that Bitcoin price would achieve the ATH target of $73,800 before aiming for more.
1. Significant Attention From US Presidential Election
Since the beginning of the year, the former US president and current presidential candidate, Donald Trump, has presented himself as a crypto ally, forgetting his past unsupportive opinions about the industry. With this, a fresh image of Trump is available, where he actively spoke about assisting the crypto industry to new heights of development. With this popularity, Trump has raised $7.5M in crypto donations recently. However, he is not the only one with a different mindset, as the US Vice President and presidential candidate, Kamala Harris, has also approached the crypto investors with promises of the right regulations. As a result, the US presidential election is bringing enough attention to the market to boost the token’s price.
Here, Trump is clear and sure of his goal, but market analysts believe that the outcome of the US election would not change the worth of the industry, and cryptos like BTC will continue to grow regardless of the next President. Confirming the same, the Bitwisise CIO predicted that Bitcoin to hit ATH before even elections were over. However, many also believe that Donald Trump’s win is better for Bitcoin price and have claimed to see it rise to $90K. The chances of this win are also high in this market, as Donald Trump is way ahead of Kamala Harris on the Polymarket data.
2. Growing Demand for Spot Bitcoin ETFs Pushing Bitcoin Price
The increasing demand for the Spot Bitcoin ETFs is the biggest factor behind the ongoing BTC price rally. After being approved at the beginning of the year, the popularity has grown exponentially, attracting more than $19 billion in net inflows. It has not only cleared the demand for Bitcoin but has also pushed the price of this cryptocurrency.
Presently, the ETF has witnessed its biggest single-day inflow since June, grabbing $555.8M, which is impressive. Additionally, user activity has increased movement around the Bitcoin call option. In the last week alone, crypto investors added 1500 BTC in the open interest at the 80K call option, set to expire on December 27. It clearly indicates that the investors are getting prepared for further upward movement.
[BIG DAY] The 11 Bitcoin ETFs saw a massive inflow of $556M on October 14, 2024, as the $BTC price rebounded by 4.6%!
Notably, this marks the largest net inflow since June 5, 2024, and the 8th largest inflow since the launch of BTC ETFs .
Follow @spotonchain and read the… pic.twitter.com/Wx8e3yqgdN
— Spot On Chain (@spotonchain) October 15, 2024
After analyzing the hype around Bitcoin ETFs, analysts have claimed that these could push the BTC price to $115,000 in the upcoming few months.
3. S&P 500 Opening At New High Plus Uptober Anticipation
Bitcoin price has also faced a positive push from the S&P 500 data and the expectations around China leaning toward the industry. The BTC price grew to a month high, with the S&P 500 index opening at a new high, which is also a sign of a bullish market trend. Though it is not entirely related, there are points where one financial market gets impacted by the performance of the other.
Additionally, there is a heavy buzz around Uptober, the most profitable month in the last thirteen years’ Bitcoin reports. However, the first two weeks of the month were disappointing, as the crypto market’s red zone took over, reducing the expectation around Uptober. However, like previous records, the Bitcoin price growth turned positive after the first two weeks. And now, the Coingalss report revealed a +6.83 in monthly growth, causing increased hype around this token.
4. Large Company Holding in BTC Boosting User Confidence
Earlier, only Michael Saylor’s firm, Microstrategy, was known to have a large Bitcoin holding, making it the biggest corporate Bitcoin treasure reserved on this earth. However, a few other firms are also aiming for the same. It includes Metaplanet holding 855 bitcoins, nicknamed Asia’s MicroStrategy.
However, this is nothing compared to the original Microstrategy’s 252,500 BTC holding, worth around $16.6 billion. More importantly, the CEO Michael, has revealed the plans to become or evolve as the Bitcoin Bank, strengthening the people’s mindset about cryptocurrency.
Even Elon Musk’s company has significant holdings in this cryptocurrency, where just today, Tesla has moved over $759M from Bitcoin Stash. Overall, these large firms are boosting the users’ confidence in this cryptocurrency with their trust in Bitcoin’s strengths and capabilities.
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