Bitcoin surged on Thursday, nearing a three-month high as speculation around a second Trump presidency, potential for crypto-friendly regulation, and increased capital inflows lifted cryptocurrency markets.
As of 01:05 ET (05:05 GMT), Bitcoin rose 0.5% to $67,328.4, having briefly surpassed $68,000 earlier in the week. The token has broken out of the $50,000 to $65,000 range that dominated much of this year’s trading.
The broader cryptocurrency market also saw gains, driven by hopes of a favorable regulatory environment in the U.S. This comes after Vice President Kamala Harris pledged to introduce a regulatory framework for the industry.
Bitcoin received an additional boost from defunct exchange Mt. Gox, which postponed the return of stolen tokens to creditors.
Bitcoin Gains Amid Trump Victory Speculation
The recent rise in Bitcoin is partly fueled by growing speculation that Donald Trump, the Republican candidate, could secure a second term in office. Online betting platforms like Polymarket now show Trump leading with 58.4% odds over Harris’ 41.3%.
Media polls show a tight race, with Harris holding a slight lead as the election approaches. Trump’s pro-crypto stance, including accepting campaign donations in cryptocurrency, has bolstered market sentiment. He also reiterated earlier this year that Bitcoin’s future would be built in America.
By contrast, Harris has only recently addressed the crypto space, focusing on the need for regulatory frameworks.
Dollar Strength, Rate Cuts Temper Gains
Despite recent momentum, Bitcoin’s gains were curbed by a stronger U.S. dollar, bolstered by optimism surrounding Trump and the expectation of slower rate cuts from the Federal Reserve. U.S. retail sales and industrial production data, due later on Thursday, are expected to offer more direction for markets.
Meanwhile, other central banks are also expected to cut rates, with the European Central Bank widely anticipated to lower rates later today.
Altcoins Follow Bitcoin’s Lead
Other cryptocurrencies tracked Bitcoin’s rise. Ether, the world’s second-largest cryptocurrency, gained 0.5% to $2,631.21, while XRP jumped 3.5%. ADA and SOL dipped slightly, while MATIC remained steady.
Meme token DOGE saw the biggest rise, up 5.4%.
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