After a long period of decline, Bitcoin has started to rise shortly before the US presidential elections.
At this point, analysts state that the BTC price is associated with the increasing probability of Donald Trump winning, and predict that the BTC price may increase as the probability of Trump winning increases.
As Bitcoin approaches the $70,000 resistance on its way up, Bernstein analysts said that investors and the market are shifting to a “risk-on” mode as the elections approach. At this point, analysts stated that strong spot ETF inflows, positive crypto stock markets, and retail trading reflect the risk-off mode.
Bitcoin, along with other risk assets, has risen as crypto-supporting Donald Trump looks set to win the election and rival Kamala Harris makes clearer and more optimistic statements on crypto policy, Bernstein analysts led by Gautam Chhugani wrote in a note to clients.
According to Bernstein analysts, this rise was driven by investors becoming less concerned about downside risk and switching to risk-taking mode.
“With Donald Trump likely to win the US presidential election over Kamala Harris, who has recently supported crypto regulation, investors and the market see less downside risk.
“Investors' willingness to take more risks is also pushing prices higher.”
Analysts stated that bullish sentiment has increased among investors and in the market with the return of risk-taking mode, and the first sign of this was that spot Bitcoin ETFs saw a net inflow of $2.1 billion last week.
Analysts stated that the increase in ETF inflows also indicates increasing spot demand, and that the increasing probability of Trump winning and the increasing demand for BTC increased the price.
*This is not investment advice.