Bitcoin has surged more than 8% this week, coming within a few dollars of its record high from Tuesday. The original cryptocurrency topped $73,000 before paring gains on Wednesday as the crypto industry weighs Republican presidential candidate Donald Trump’s victory.
Crypto bulls predict that Bitcoin will hit a new all-time high, previously set in March, in the days leading up to the election. After climbing over $2,000 in a matter of hours, the price of Bitcoin has declined slightly and continues to oscillate between $71,000 and $73,000. The currency rose 12% throughout “Uptober,” a nickname coined for Bitcoin’s historically lucrative month.
The broader crypto market is following a similar trend this week, with Ethereum and Solana rising 4% and 5%, respectively. Dogecoin – the memecoin commonly associated with Elon Musk – rose 23%, thanks to the billionaire’s mention of the coin at several Trump rallies.
Bitcoin spot exchange-traded funds saw strong inflows coinciding with Bitcoin’s rise on Tuesday. ETFs raised $870 million amid pre-election market volatility, the third largest inflow since their approval in January. Bitcoin reached its all-time high of over $73,000 in March following the introduction of these Bitcoin ETFs to the market.
This race comes as Trump widens his lead against Vice President Harris on Polymarket, a crypto prediction market. With less than a week until the election, Polymarket bettors give Trump a 67% chance of winning the election, while mainstream polls have the two deadlocked – even as new evidence shows much of the trading on the site are false.
Both candidates are in the home stretch of their campaigns, making one last effort to woo undecided voters and encourage their supporters to go to the polls. On Sunday, Trump held a rally at Madison Square Garden at which Elon Musk spoke about his involvement in Trump’s proposed Department of Government Efficiency, or DOGE — a nod to Dogecoin.
Trump has made significant efforts to attract the crypto industry this election cycle, promising to make America “the crypto capital of the planet.” He started his own crypto company, spoke at this year’s Bitcoin conference in Nashville, and pledged to, among other things, fire SEC Chairman Gary Gensler on day one.
Although Harris has taken a more moderate pro-crypto stance than President Biden, some analysts predict that the price of Bitcoin could collapse if Harris wins. Transform Ventures CEO and crypto millionaire Michael Terpin says the currency will continue to grow in any case.
“There’s just too much momentum right now,” Terpin said. Fortune. “We’re at the point in the cycle where prices are generally going up a bit. I just think Trump winning would make things go faster and higher.”
