Daily Crypto Market Update: Bitcoin Surges Amid Election Speculations

Daily Crypto Market Update

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Latest Prices

• CoinDesk 20 Index: $1,774.87 (+1%)
• Bitcoin (BTC): $55,372.84 (+1.4%)
• Ether (ETH): $2,319.53 (+0.63%)
• S&P 500: 5,408.42 (−1.73%)
• Gold: $2,494.24 (−0.11%)
• Nikkei 225: 36,215.75 (−0.48%)

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Bitcoin has recently crossed the $55,000 mark during the European trading session, showing resilience after hovering between $54,000 and $55,000 over the weekend. The leading cryptocurrency has gained approximately 1.45% in the past 24 hours, while the broader crypto market has experienced a 1.15% uptick, as indicated by the CoinDesk 20 Index. This week, market participants will be closely monitoring the U.S. release of August’s Consumer Price Index (CPI) and Producer Price Index (PPI) data scheduled for Wednesday and Thursday, respectively. Additionally, on Tuesday, Donald Trump will face off against Kamala Harris in the first presidential debate ahead of the November elections. Trump has expressed his ambition to establish the U.S. as the “crypto capital” of the world, while aides for Harris are reportedly exploring policies to support the cryptocurrency industry.

According to a research report by broker Bernstein, a Trump victory in the upcoming elections could potentially propel Bitcoin to an unprecedented high of $90,000. Conversely, a win for Harris might lead Bitcoin to test the $30,000-$40,000 range. Bernstein highlighted Trump’s outspoken endorsement of Bitcoin, emphasizing his desire to position the U.S. as the “bitcoin and crypto capital of the world,” and noted that he has referenced cryptocurrency in every policy speech he has delivered. Analysts led by Gautam Chhugani noted, “After a challenging three years of regulatory scrutiny, a shift towards favorable crypto regulations could ignite innovation and draw users back to blockchain-based financial products.” The report further added, “While the election outcome remains uncertain, those holding long positions in crypto are likely betting on a Trump victory.”

In another analysis, trading firm Presto Research stated that Bitcoin is currently “grossly undervalued,” attributing this to the market’s neglect of Bitcoin’s robust network security. The firm’s latest note highlighted that Bitcoin’s hashrate, which measures the computational power dedicated to securing the network, has recently reached an all-time high of 679 EH/s. Analysts Peter Chung and Min Jung commented, “If you believe that this upward trend will persist (especially with the introduction of spot ETFs signaling a more favorable environment), Bitcoin appears to be significantly undervalued at present.” They noted that Bitcoin miners have been expanding their operations since August, coinciding with record-high hashrate levels, which have historically indicated price bottoms for the cryptocurrency. Meanwhile, some traders have suggested that lower-than-expected U.S. payroll figures point to a weakening labor market, although the decline in unemployment rates has somewhat alleviated fears of an impending recession.

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