Bitcoin Nears ATH as a Trump Victory Could Energize the Market – Greed Season Is Starting?

• Bitcoin is 2% away from its all-time high (ATH) of $73K, and a potential Trump victory on November 5 may seal the deal.
• Analysts argue that Bitcoin will perform well and might reach six-digit figures regardless of the US election results.
• A dollar downfall isn't necessary for Bitcoin's surge beyond $200K-$400K, given continued growth in the store-of-value market and institutional $BTC adoption.

Is the bull run starting?

Bitcoin ($BTC) reached $72.4K, a 2% increase in the last day and an 8.47% pump in the last week. Its 24-hour trading volume is also up by 10.75%.

CoinMarketCap's Community Sentiment metric shows a 73% bullish trading stance, which might invite significant greed.

A Bitwise executive (Matt Hougan) also came out to say that the dollar doesn't have to crash for Bitcoin to reach six-digit values.

Plus, the upcoming US elections (and a potential Trump victory) are further energizing the market, leading to rarely-seen bullish moves.

Let's see what that's all about.

$BTC Might Reach $400K Without the Dollar's Demise

Matt Hougan (Bitwise's chief investment officer) argues that Bitcoin's store-of-value nature doesn't depend on the dollar's downfall to succeed.

He further explained that investing in Bitcoin relies on two assumptions:

1. Bitcoin will garner sufficient investor attention as a store-of-value asset.
2. Governments will continue to abuse fiat and make store-of-value assets more attractive.

Both these arguments seem to be coming true. $BTC is around 7% of gold's $18T market cap. Assuming $BTC can reach 50% of gold's value, every Bitcoin will be worth $400K.

Add the increasing interest in the store-of-value market, and Bitcoin could (technically) reach seven figures. Hougan argues this is the likeliest scenario.

Most importantly, traditional store-of-value assets have become increasingly popular due to the growing global economic uncertainty.

For instance, gold reached an all-time high of $2,778 on October 29. And dollar devaluation will continue to be a pillar of the US's industrial policies, according to a Financial Sense report.

All this opens Bitcoin's potential as a store-of-value asset. And US politics are another bullish factor.

Trump's Victory Might Push $BTC Beyond $80K

Last time we checked, Trump was winning the elections on Polymarket, the biggest derivative market in the world.

Now that the elections are so close (November 5), crypto pundits expect a Trump victory to provide a dopamine hit' to the market.

Bitcoin's pump from $65K to $73K was massive and likely indicative of an ATH breakout soon.

Altcoins like Cardano (+2.78% daily) and Solana (+8.51% weekly) have followed suit, with most of the market in the green. Even the meme coin market is thriving, with a 2.45% increase in the 24-hour trading volume ($103B).

With Trump's pro-crypto policies,traders are expecting Bitcoin to hit $80K before November 5, dubbing the coin a Trump trade.'

Others are more pragmatic. Nick Forster (Derive founder) advises caution in an increasingly volatile market.

The increased buying of calls indicates some traders are indeed betting on a bullish outcome, potentially expecting a buy the rumor' scenario, but the reality could pivot quickly to a sell the news' dip depending on actual election outcomes.Nick Forster, Derive Founder

While Swyftx analyst Pav Hundal sees Trump's victory as a good thing for the industry, he also doesn't think the elections will be the decisive factor in Bitcoin hitting $100K.' David Lawan (FalconX's head of research) agrees with this sentiment.

Is the Bull Run Finally Starting?

We're finally looking at a possible 2024 bull run. After the Bitcoin halving in April, the entire market was looking forward to this moment.

The US elections further support the bullish narrative, and with Bitcoin so close to an ATH breakout, the writing's on the wall.

The next few weeks will be instrumental in Bitcoin's surge alongside the rest of the market.

References

• Matt Hougan X Post About Bitcoin and the Dollar (X)
• In Depth: Dollar Devaluation and the Next Stage of US Industrial Policy (Financial Sense)
• Trump victory may give crypto a dopamine hit,' but traders should be cautious (Cointelegraph)
• Meme Coin Market Performance (CoinMarketCap)

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