Investing.com– Bitcoin’s price rose slightly on Thursday and was headed for strong weekly gains as speculation over a potential Donald Trump victory in the upcoming presidential elections boosted prices.
The world’s biggest cryptocurrency hit its highest level since late-July earlier this week amid a storm of positive factors, although gains now appeared to be cooling.
rose 0.8% to $67,727.0 by 09:05 ET (12:05 GMT), having briefly crossed $68,000 earlier this week.
Bitcoin heads for weekly gains
The token was trading up more than 7% this week, its best performance since early-September.
Bitcoin was boosted by a storm of factors, including increased speculation over a Trump victory, while Democratic presidential nominee Kamala Harris also pledged to create a regulatory framework for crypto.
Additionally, sentiment towards Bitcoin was buoyed by defunct exchange Mt Gox extending its timeline to return tokens to creditors by a year. Bitcoin distributions by Mt Gox- which began in July- were expected to present a major selling scenario for the token.
Capital flows into crypto investment products were also seen improving in the past week.
Trump victory bets boost crypto
Bitcoin was boosted by increased expectations of a Trump victory in the upcoming elections. Trump was seen gaining substantially better odds in online prediction and betting markets such as Polymarket, while a recent Fox News poll also showed him with a slight edge over Vice President Harris.
Other polls, such as a recent survey from Reuters/IPSOS, showed Harris with a slight lead over Trump, while most polls pointed to a tight race.
Crypto markets welcomed the prospect of a Trump victory, given that he has been largely pro-crypto in campaigning, even promising to build the future of Bitcoin in America.
Promises of a regulatory framework from Harris also boosted sentiment, although she did not provide more clarity on the plans.
Crypto price today: altcoins lose steam
While Bitcoin was positive, other major cryptos were seen losing steam after recent gains.
World no.2 crypto climbed 0.3% to $2,619.39, but was trading up 8% in the past 7 days.
, , and traded in a flat to slightly lower range, but remained up for the week.
Among meme tokens, surged more than 9%.
Republican win in US election seen as most favorable outcome for Coinbase, crypto space
A Republican victory in the upcoming US election could be the most favorable scenario for both Coinbase Global Inc (NASDAQ:) and the broader cryptocurrency market, Citi analysts said. According to a research report seen by CoinDesk, a Harris presidency with a divided Congress, however, would likely result in increased uncertainty for digital assets.
“The Trump/Vance ticket has publicly endorsed digital asset reform, Republican control of the Senate would be important for passing bills like FIT21 and confirming pro-crypto agency leaders,” analysts noted. They added that “the pace of digital asset reform would likely move faster with both chambers of Congress aligned.”
Even in the event of a Republican win in the Senate alongside a Democrat-controlled House, Citi views this as a bullish outcome for Coinbase and the crypto sector. The US election will take place on Nov. 5, with the results expected by Nov. 8.
The report also noted that some key members of the current House Financial Services Subcommittee, which is made up of several Democrats, have expressed strong opposition to crypto. However, Citi analysts suggested that a “combined Democrat and Republican pro-crypto contingent” would likely carry more influence.
A Republican Congress under a Harris presidency would bring some uncertainty to the digital assets space, as her stance on crypto remains unclear. According to the bank, a Democrat-led administration would likely retain many of the current agency heads to avoid complications with Senate confirmations.
The most uncertain scenario for crypto, according to Citi, would be a Harris win alongside a divided Congress, which could create challenges for passing crypto legislation and leave Coinbase investors less confident about gaining sufficient Senate support.
Ambar Warrick contributed to this report.
