Bitcoin Hits Record Highs Amid Political Landscape Changes
Biden exited the presidential race prematurely for Trump to seek revenge from 2016, leading Trump to target his VP instead.
Bitcoin presents an opportunity for Trump to surpass Biden in a significant popular vote. Bitcoin reached record highs alongside the stock market following Trump's recent win, with the S&P 500 increasing by 4% over the past month compared to Bitcoin's 18% rise.
This performance contrasts sharply with post-2016 election trends, where Bitcoin experienced only a brief 5% increase. In 2012, Obama's victory correlated with a 20% drop in Bitcoin's price before it recovered in subsequent weeks. However, Biden's 2020 win coincided with a substantial rally, with Bitcoin climbing 30% in the month before the election and an additional 50% in the following month.
This period marked the beginning of Bitcoin's significant surge from $10,000 to $60,000 as Trump transitioned out of office, spanning September 2020 to March 2021.
Bitcoin's current market cap is approximately $1.5 trillion, significantly higher than the under $300 billion at the time of Trump's exit. Consequently, larger movements are required to impact Bitcoin's price today.
If Bitcoin were to rally similarly to previous elections, an 87% increase surrounding Biden's win would be notable. Currently, Bitcoin has increased about 20% since Trump's win, with another 70% gain potentially elevating its price to nearly $130,000 before year-end.
Significant upward momentum is necessary for this scenario to materialize.