Bitcoin Rises Amid Trump’s Campaign Promises, Trading at $72,784

Bitcoin has seen a significant surge in New York trading, climbing 3.9% to reach $72,784.40, inching closer to its record high of nearly $74,000 set in March. This recent rally is being attributed to what analysts are referring to as the “Trump trade,” following the Republican candidate’s bold declarations regarding cryptocurrency.

Donald Trump has vowed to make the United States the “bitcoin superpower of the world” if he regains the presidency, a commitment that has resonated with crypto investors. Many in the market view a potential Trump victory as favorable for digital assets, fueling investor enthusiasm and driving up prices.

As Trump and Democratic candidate Kamala Harris remain neck and neck in the polls, market sentiment appears to be leaning towards Trump. The former president, who once labeled bitcoin a “scam,” has recently shifted his stance, actively courting the cryptocurrency sector. Notably, Trump has pledged to fire Gary Gensler, the current chairman of the US Securities and Exchange Commission (SEC), known for his stringent regulation of crypto markets.

Supporters of bitcoin argue that the cryptocurrency serves as a hedge against inflation, benefiting from a fixed supply cap of 21 million coins, with over 19 million already in circulation. Although Trump’s proposed tariffs on foreign goods—including a universal 20% tariff and a potential 60% tariff on Chinese imports—are expected to carry inflationary implications, he claims these tariffs will not lead to higher prices for consumers.

Kamala Harris, the Democratic nominee, has also expressed a positive outlook on digital currencies. In her recent economic strategy, she described cryptocurrency as vital to the “industries of the future” and has engaged in discussions with crypto firms, suggesting a willingness to collaborate with the sector.

Market analyst Tony Sycamore from IG Australia noted that bitcoin’s current price surge reflects investor optimism surrounding a potential Trump victory. Meanwhile, Ryan Lee, chief analyst at Bitget Research, emphasized that both Trump and Harris advocate for a clearer regulatory environment for digital assets, but Trump’s enthusiastic support appears to have heightened market optimism.

Investor interest in the cryptocurrency market has also positively affected other digital currencies. Ether, the second-largest cryptocurrency by market capitalization, experienced a similar 3.9% increase, trading at $2,667 in New York on Tuesday.

Overall, bitcoin’s recent performance highlights the influence of political developments on cryptocurrency markets, with investors keenly watching the upcoming election outcomes as they position themselves in this volatile landscape.