Bitcoin Blasts Past $70,000: Is a $100,000 Breakthrough on the Horizon

Ahead of the US presidential election on 5th next month, the approval ratings between Democratic Vice President Kamala Harris and Republican former President Donald Trump are extremely tight. The Democratic Party proposed a corporate tax hike aimed at ‘compensating the middle class and labor’, tax increases for the wealthy and large corporations, and tax cuts for the middle class and low-income people. The Republican Party, which adheres to America First, promotes ‘deregulation and comprehensive tax cuts’ policies such as lowering corporate tax rates and personal income taxes and expanding the limits of the inheritance tax exemption. Regardless of who is elected, the outcome of the US presidential election is expected to have a significant impact on the international situation and global financial markets. We look at the impact of the US presidential election on overall Korean financial markets, including interest rates, exchange rates, bonds and virtual assets [편집자주]

Bitcoin, the leading cryptocurrency, has surpassed $70,000 ahead of next month’s US presidential election. Assuming that US Republican presidential candidate Donald Trump is elected, the ‘Trump trade’ phenomenon, which shows strength, is becoming more apparent and Bitcoin is showing a sharp rise every day.

The US presidential election, in which virtual currency-friendly candidate Trump is likely to be elected, coincides with Bitcoin’s halving, with some predicting a Bitcoin market rally to $100,000.

◇ Bitcoin, at one point surpasses $73,000… near peak price

According to CoinGecko on the 30th, at 6:31 a.m. on this day, the price per bitcoin was recorded at $72,408, up nearly 4% from 24 hours earlier.

It crossed the all-time high of $72,000 at 00:30 hrs on this day and crossed $73,000 around 3:50 hrs.

In Korea, Bitcoin exceeded 100 million won in about 7 months since last April. The market predicts that there is a high possibility that Bitcoin will surpass the all-time high price (104.5 million won) recorded in March.

The reason why Bitcoin is showing such strength is that candidate Trump may be elected president ahead of the US presidential election on the 5th of next month (local time). With the US presidential election less than a week away, candidate Trump and Democratic presidential candidate Kamala Harris are locked in a close race with a margin of error.

However, some recent opinion polls show that candidate Trump has an advantage, analyzing that investment funds are flocking to virtual assets while candidate Trump is showing a friendly trend.

Blogger News also believes that Bitcoin rallied on the day as pro-cryptocurrency candidate Trump’s chances of being elected increased.

◇ Bitcoin is expected to surpass $100,000

Experts predict that Bitcoin’s upward momentum will strengthen in the future, such as surpassing $100,000.

Investors are rushing into the virtual asset market amid anticipation of candidate Trump’s election, and mid- to long-term bullish factors such as Bitcoin’s halving are also overlapping.

Democratic candidate Harris also has a greater interest in virtual assets than President Biden, but shows a clear difference in temperature compared to candidate Trump.

Trump has consistently expressed his desire to ease regulation of virtual assets. He declared, “We will make America the cryptocurrency capital of the world,” and promised to fire SEC (Securities and Exchange Commission) Chairman Gary Gensler, who has been criticized for tightening regulations on virtual assets.

“It will depend on how aggressively the Federal Reserve cuts interest rates, but $100,000 would be a ‘reasonable target’ for Bitcoin right now,” said John Patrick Mullin, CEO of blockchain company Mantra.

Kim Min-seung, head of the Corbitt Research Center, said, “In the previous three years, in 2012, 2016 and 2020, there were US presidential elections and a half, and there was a significant price increase and an explosive growth in the fourth quarter. “I don’t think it’s impossible to reach $100,000,” he added the following year.