Bitcoin Surpasses $67,000 for First Time in More Than a Month, Reviving Record High Hopes

(Bloomberg) -- Bitcoin surpassed $67,000 for the first time in more than a month, reviving speculation that the largest cryptocurrency may soon make another run at record highs amid optimism that a second Trump presidency will be beneficial for digital assets.

Bitcoin rose to above $67,000 for the first time in more than a month on Friday, tracking increasing optimism that a second Donald Trump presidency will be favorable for digital assets.

The world’s largest cryptocurrency by market value rose almost 6% to $67,434 as of 11:08 a.m. in New York. Smaller tokens including Solana, Dogecoin and Avalanche were all up more than 3%.

Bitcoin reached an all-time high of almost $74,000 in March amid optimism over demand for US exchange-traded funds that were permitted to hold the token directly for the first time.

The increasing likelihood of the Republican nominee becoming president is driving Bitcoin and the rest of the cryptocurrency market higher, according to FRNT Financial Chief Executive Officer Stephane Ouellette.

“We’re on the precipice of another bull market cycle, similar to 2021,” said Ouellette, in an interview. Bitcoin reached its previous bull market all-time high in late 2021.

Crypto is rallying even as stocks are falling, eroding the sector’s recent correlation with other so-called risk assets. Most groups in the S&P 500 dropped Friday, with the gauge having its worst week since April.

In the days following a failed assassination attempt against Trump, the odds of him becoming president have risen to around 63%, according to PredictIt. In about the same time, the price of Bitcoin has jumped around 15%.

JD Vance being selected as the Repubican vice presidential candidate is also a tailwind for crypto, according to Ouellette. Vance’s ties to Silicon Valley and pro-crypto views will favorably impact policy if the Republicans win back the White House in November from President Joe Biden, he said.

“While there is a premium for options that have election exposure, it is relatively muted since Trump is currently the runaway favorite to win,” said FalconX Head of Markets Ravi Doshi. “That could of course change drastically if Biden drops out of the race.”

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