Bitcoin’s rally is facing pressure as it becomes increasingly associated with market dynamics linked to former President Donald Trump’s potential return to the White House. Recent shifts in global markets, partly driven by Trump’s rising prospects in prediction markets, are causing some unease in the crypto space.
Impact of Trump’s Economic Outlook
Rising bond yields and a stronger US dollar have emerged alongside Trump’s lead over Vice President Kamala Harris, the Democratic nominee, in some polls. Investors seem to be adjusting their expectations, anticipating that a Trump victory could see the implementation of a pro-growth agenda in an already robust US economy. This outlook is dampening hopes for looser monetary policies, which have traditionally benefited risk assets like Bitcoin.
Despite Trump’s support for the digital-asset industry during his campaign—something that initially boosted market sentiment—Bitcoin and stocks have wavered in response to the broader financial tightening. The question now is whether Trump’s broader economic priorities could temper optimism for the crypto market.
Bitcoin’s Performance
Bitcoin rose about 1% to $67,300 early Thursday morning in London, trimming its weekly decline to around 2%. The leading cryptocurrency has surged roughly 60% this year, reaching an all-time high of $73,798 in March, driven by demand for US spot-Bitcoin exchange-traded funds.
However, the current cooling of the rally marks Bitcoin’s first weekly loss in three weeks as investors weigh the potential outcomes of the US presidential race.
Crypto Policies: Trump vs. Harris
Trump has pledged to make the US the “crypto capital of the planet,” a promise that has resonated with digital-asset enthusiasts as he seeks to secure votes. His stance contrasts with Vice President Harris’s more cautious approach, which focuses on establishing a regulatory framework for the crypto industry. This difference is stark when compared to the crackdown on digital assets under the current Biden administration.
The tight race between the two candidates is evident in key US swing states, where a Bloomberg News/Morning Consult poll shows Trump and Harris statistically tied among likely voters. The narrow margins in these battleground states highlight how pivotal the final stretch of campaigning will be in determining who takes the White House.
