Trump’s Presidential Bid: Will Bitcoin Soar to New Heights

The price of the virtual currency Bitcoin is expected to fluctuate significantly as Democratic Vice President Kamala Harris and Republican former President Donald Trump are in a close race in the U.S. presidential election.

According to Bloomberg News, Caroline Moren of Orbit Markets, a liquidity provider for cryptocurrency derivatives trading, said on the 4th (local time) that the Bitcoin price is expected to change by about 8% in either direction the day after the vote in the options market. . The ‘Bitcoin Volatility Index’, compiled by CF Benchmark, a digital asset index provider, using the Chicago Mercantile Exchange (CME) Group’s Bitcoin option prices, also rose to its highest level since early August, when the global financial market was in turmoil. It’s a state.

Bitcoin has been considered a representative ‘Trump beneficiary’. This is because former President Trump showed friendly actions towards virtual currency during this presidential election. At the election campaign, he said, “I will stockpile Bitcoin as a national strategic asset of the United States,” and “I will make the United States the virtual currency capital.” Former President Trump’s representative pledges include holding Bitcoin strategic reserve assets and immediately dismissing Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), a virtual asset regulator. In addition, a decentralized finance (DeFi) project led by the Trump family was recently launched, and a non-fungible token (NFT) modeled after former President Trump was also launched.

Jeff Kendrick, head of digital asset research at SC, said, “If Trump wins, there is a possibility that it will rise by about 10% in the next few days,” and added, “Bitcoin option investors are flocking to call options over $80,000 that expire on December 27th. “We can move quickly to that level,” he diagnosed.

Meanwhile, Vice President Harris promised to support and legislate technological innovation related to virtual assets, but the policy content is evaluated as being more ambiguous than that of former President Trump. Kendrick, head of SC, predicted, “If Harris wins, Bitcoin will initially decline,” and added, “It will close at around $75,000 this year.”

However, not all cryptocurrency officials support Trump. Chris Larson, co-founder of the large virtual currency ‘Ripple’, donated about $10 million to the Democratic Political Action Committee (PAC) to support Vice President Harris in this presidential election. “It is time for the Democratic Party to take a new approach to technological innovation, including virtual assets,” Larson said through .

Vice President Harris also promised support for the virtual asset industry in his first public appearance last September. He said, “If elected president, I will encourage innovative technologies such as virtual assets,” and “I will protect consumers and investors while encouraging innovative technologies such as artificial intelligence (AI) and virtual assets.”

Reporter Ahn Kyung-jun eyewhere@segye.com

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