Bitcoin Eyes $100K With New All-Time High As Donald Trump Victory Odds Shoot to 88%

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As a seasoned researcher with a decade-long career in the financial markets and a keen interest in cryptocurrencies, I find myself intrigued by this recent surge in Bitcoin (BTC) price and the broader crypto market. The correlation between Donald Trump’s victory odds and the crypto market is noteworthy, to say the least. My personal experience has taught me that politics often plays a significant role in shaping financial markets, but the magnitude of this relationship seems exceptional.

The Bitcoin (BTC) price has skyrocketed by over 9% in the last 24 hours hitting a new all-time high of $74,917 levels as Donald Trump’s victory odds jump to 88% with strong gains in just over the last over. Along with Bitcoin, altcoins are also delivering a strong show with Ethereum (ETH), Solana (SOL), Chainlink (LINK), and Avalanche (AVAX) rallying by 7-15% today. Also, the meme coin sector led by Dogecoin’s (DOGE) 28% single-day gains has been cheering the most over Trump’s victory.

Bitcoin (BTC) to $100K Soon After Donald Trump Victory?

In simple terms, the wider cryptocurrency market appears to be placing wagers on Donald Trump’s potential victory and anticipates fulfillment of his election pledges for a robust crypto landscape within the U.S. According to the Associated Press, at the time of reporting, Trump is ahead in approximately 198 electoral seats, while Kamala Harris leads in about 112 seats.

As a researcher, I’ve noticed an intriguing trend: Data from Polymarket indicates that in the last hour, Donald Trump’s chances of winning the election have surged by 30%, now standing at 88%. This development has ignited a Bitcoin price surge, reaching unprecedented new highs, finally breaking the long-anticipated barrier. Post-election, it will be fascinating to observe how quickly Trump follows through on his earlier promise to dismiss Gary Gensler from his position.

As a financial analyst, I am observing a growing sentiment among investors that Bitcoin’s price could potentially reach $100,000 in a rally. This perspective is echoed by Frederick Collins, the CEO and founder of crypto data platform VeloData, who has shared his insights on this development.

It seems that early indications favor Trump, which could be a reason why Bitcoin is being closely watched as a trading instrument tonight. In my view, Bitcoin’s liquidity and strong correlation with the election outcome make it an attractive choice. Therefore, any price hikes might indicate growing optimism for Trump’s chances of victory.

It was widely anticipated among investors that the crypto market would experience significant fluctuations around the election, with Bitcoin options suggesting a potential 8% swing in either direction. Moreover, data from Coinglass indicates that within the past hour, Bitcoin reaching new record highs has triggered approximately $350 million in short liquidations across the entire crypto market.

In simple terms, Bitcoin currently controls over 60% of the overall cryptocurrency market. According to well-known cryptocurrency expert, Benjamin Cowen, it’s likely that Bitcoin’s control over the market will reach its peak within the following 8 weeks.

Conversely, following a robust October, the Bitcoin ETF market experienced three straight days of withdrawals. On Monday alone, the outflow reached an impressive $541 million, which is the second-largest on record.

As an analyst, I firmly believe that the growth momentum of Bitcoin, Ethereum, and stablecoins remains unaltered, irrespective of the election results. To put it simply, the crypto sector is resilient enough to withstand any potential regulatory actions from Washington. In other words, the evolution of cryptocurrencies is largely independent of political decisions.

All Eyes on FOMC Meeting Next

Attention will be focused on the FOMC meeting taking place on Thursday, November 7th. It’s expected that the Federal Reserve could decrease interest rates by 25 basis points during this week. Furthermore, there’s been a noticeable cooling in the labor market compared to its peak a few years ago. This trend provides another justification for the US Central Bank to consider lowering interest rates in the future.

Steven Blitz, the chief US economist at TS Lombard, stated without any ambiguity that a reduction of 0.25% will be made in November, and another reduction of the same amount will follow in December.

As an analyst, I posit that this potential development could significantly enhance liquidity across the cryptocurrency market, thus sparking a new significant bull rally.

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2024-11-06 07:32