Bitcoin’s price has experienced a remarkable 10% increase over the past week, briefly surpassing $68,200 on Friday, marking its highest level since late July. Despite its volatile performance in recent months, industry experts are increasingly optimistic about Bitcoin’s potential for a substantial price surge before the year’s end.
Initially, the upcoming US presidential elections were seen as a source of uncertainty for Bitcoin’s price. However, recent analysis suggests that a victory by either Donald Trump or Kamala Harris could prove favorable for the cryptocurrency.
Alex Thorn, head of research at Galaxy Digital, noted that “a Trump victory is extremely likely to be positive for cryptos — particularly altcoins — we view a Harris administration as likely to be equal or slightly better than the Biden administration.”
Reflecting this sentiment, Trump currently holds a lead over Harris on crypto betting platform Polymarket, while polls show Harris slightly ahead. Matt Hougan, chief investment officer at Bitwise, believes that the election-related uncertainty is giving way to a “fear of missing out” (FOMO) among investors.
Bitcoin’s recent rally coincided with a significant influx of institutional capital into spot Bitcoin ETFs. This trend, referred to as “flowmageddon,” indicates a growing number of institutions are viewing Bitcoin as a strategic asset rather than a speculative one.
Alice Liu, research head at CoinMarketCap, emphasized that “large companies and asset managers have started integrating Bitcoin into their investment portfolios or treasuries, which gives Bitcoin more legitimacy and reduces its perceived risk as a fringe investment.”
The availability of Bitcoin ETFs has opened new avenues for wealth managers, who collectively manage trillions of dollars. With major financial institutions like Goldman Sachs and Morgan Stanley already holding substantial amounts of Bitcoin ETFs, further inflows are expected.
While the outlook for Bitcoin appears promising, certain risks remain. Ryan Lee, chief analyst at Bitget Research, highlighted technological threats such as hacking and security breaches, which could negatively impact investor confidence.
“The threat of hacking and security breaches is still significant, as a successful attack on an exchange or wallet could result in substantial financial losses,” Lee warned.
Additionally, geopolitical tensions and the potential sale of seized Bitcoin by governments could also influence market dynamics. For instance, Germany’s sale of $2.3 billion worth of seized Bitcoin earlier this year led to a significant price drop.
