Election optimism pushes bitcoin near new high as investors 'vote with their buy orders'
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Bitcoin (BTC-USD) is once again flirting with an all-time high as investors bet on a boost from the outcome of the presidential election.
The price of the world’s largest cryptocurrency rose to $73,577 Tuesday, putting it within reach of its previous high of $73,750, as measured by Yahoo Finance data, set on March 13 of this year. It is currently trading below $72,000.
Bitcoin is up more than 8% over the last five days. Year to date, its price has climbed over 70%.
The two biggest factors driving the blistering rally are seasonality (the second half of October is usually bitcoin's best-performing period) and the US election, according to Sean Farrell, a digital asset strategist with Fundstrat.
Investors are "voting with their buy orders," Farrell told Yahoo Finance.
Much is riding on a victory by Republican presidential candidate Donald Trump, who made a number of promises to the industry back in July.
He promised to appoint a crypto presidential advisory council; fire Securities and Exchange Commission Chair Gary Gensler, one of the industry’s greatest antagonists; and establish a "strategic national bitcoin stockpile” with the help of Congress.
The Democratic nominee, Kamala Harris, has promised to create a regulatory framework for cryptocurrency and other digital assets as part of an outreach to Black men. Roughly 20% of Black Americans are estimated to own or have owned digital assets.
Read more: What the 2024 campaign means for your wallet: The Yahoo Finance guide to the presidential election
"There's no doubt that if Trump were to win the White House, it would be enormously constructive for digital assets," said Funstrat’s Farrell. "If Harris were to win, I do think we would see a pretty strong wick lower initially," he added.
The difference "between a Harris win and a Trump win would be significant," added Ian Katz, a managing director at Capital Alpha Partners.
Many in the industry expect a more favorable regulatory regime in store for crypto in 2025, regardless of who wins.
"It is a Trump premium as opposed to Harris discount, and a big reason for that is the Senate is likely to shift red," Fundstrat's Farrell added.
"The most important thing for bitcoin is that the election happens," Bitwise Asset Management chief investment officer Matt Hougan told Yahoo Finance Live. "I think we're going above $100,000."
Crypto corporations have poured $160 million into federal elections to elect more industry-friendly politicians as of Oct. 22, according to a Politico report.