Bitcoin spikes above $70k, stocks and gold trend higher to start election day in the U.S.

This election marks the first time in history that digital assets are a key issue for a large swath of voters. With both candidates signaling a more welcoming regulatory environment once elected, analysts widely agree that regardless of who wins, the future looks bright for cryptocurrencies.

“It has been exciting to see crypto emerge as a key issue in this presidential election cycle, underscoring its entry into the mainstream,” said Federico Brokate, Vice President and Head of US Business at 21Shares. “Regardless of this week’s election outcome, Bitcoin’s long-term potential remains strong given its status as an apolitical, global, macro asset. Bitcoin’s primary use case as a store-of-value asset will be supported as the US deficit is expected to continue to grow under both candidates.”

“Additionally, both candidates have committed to delivering clearer regulations for digital assets, which will determine the U.S.’s position in the global race for digital asset adoption and innovation,” Brokate noted. “We’re confident that over the next four years, we’ll see greater regulatory clarity, which will lead to broader retail and institutional investor adoption of digital assets.”

Bitcoin (BTC) bulls harnessed the building momentum to rally above $70,000 in early trading on Tuesday, hitting a high of $70,320 as Americans started to cast their votes officially.

BTC/USD Chart by TradingView

As a result of the early bullishness, the crypto market cap is up 2.18% to 2.33 trillion, with market watchers calling for an extended rally. Part of the gains have been driven by Dogecoin (DOGE), which has also surged higher thanks to a little help from Elon Musk.

“The crypto market has been buzzing with anticipation as the U.S. presidential election approaches,” said Shivam Thakral, CEO of BuyUcoin. “Dogecoin has surged impressively by 10.9%, driven by renewed investor interest and positive sentiment surrounding its community,”

“This uptick highlights a growing interest in cryptocurrencies among younger and more diverse voters, especially as candidates Kamala Harris and Donald Trump embrace pro-crypto policies,” he added. “As political discussions evolve, market analysts predict that favorable election outcomes could lead to increased institutional investment and a more robust regulatory environment.”

While prices are trending higher early, analysts note that caution is warranted as volatility is expected until the election results are known.

“The 2024 U.S. presidential election could impact the cryptocurrency market differently in the short term and in the long term,” said Ryan Lee, Chief Analyst at Bitget Research. “Different candidates have varying regulatory stances on cryptocurrency, which may lead to market volatility.”

“In the short term, if the elected candidate is supportive of crypto, it could boost market confidence and surge market price,” he noted. “However, in the long term, it can help in framing balanced regulation surrounding crypto to reduce market volatility.”

“The uncertainty surrounding the election outcome could trigger market fluctuations,” Lee warned. “Investors should closely monitor election developments and market reactions and be prepared to manage risks accordingly.”

That said, once the dust settles on the election, the crypto bull market is expected to continue trending higher as both candidates are ultimately seen as positive for the industry.

“Fundamentally, we continue to see plenty of support around crypto assets in 2024, including what promises to be a friendly incoming US administration, whoever it might be,” said Joel Kruger, market strategist at LMAX Group.

“Indeed, Trump has been decidedly more crypto-friendly,” he noted. “At the same time, this has forced the hand of the Harris campaign to take on its own crypto-friendly policies, all of which have been supportive in the lead-up to the November election.”

“As far as uncertainty in global markets goes, a lot of that attention has been around US election risk. The battle for the next President has been a deeply contested and tight one,” Kruger noted. “Over the weekend, momentum swung back towards Harris, which has factored into the latest round of selling.”

“Ultimately, as this relates to the outlook for Bitcoin and crypto assets, we don’t believe there will be much impact other than short-term volatility in the immediate aftermath,” he said. “We believe the most important takeaway with respect to the election is what we’ve already learned over the past several weeks – namely, the fact that both parties have recognized the important innovation in the space while showing a clear willingness to support the emerging industry and asset class.”

Analysts at Amberdata said they expect a “+1.5-Sigma ($6k to $8k price range) as a result of the post-election price reaction,” so traders should be prepared for a potential whipsaw in Bitcoin’s price.

“Therefore, major price levels are $60k (A Kamala win dip) or a $75k/$77k a Trump win that brings spot right back to the ATHs then THROUGH them, as election enthusiasm breaks the high seen last week,” they wrote.

At the time of writing, Bitcoin trades at $69,713, an increase of 1.83% on the 24-hour chart.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com