Bitcoin Bulls Eye $70K Amid Donald Trump’s Rising Chances of Returning as President

The bitcoin bulls are back, and they’re eyeing a price target of $70,000. This surge in optimism is driven by a more favorable macro environment and the prospect of a crypto-friendly U.S. administration under Donald Trump.

“The rebound in Bitcoin price shows the market has a more optimistic outlook in the near-term macro environment,” shared Lucy Hu, senior analyst at Metalpha. “The market was encouraged by Trump’s vice president pick, which indicates a more crypto-friendly administration and policies.”

Despite recent volatility and concerns over Mt. Gox repayments, traders expect prices to touch as much as $70,000 in the near term. The technical indicator, 120-day moving average, is widely used as a long-term indicator, and bitcoin is expected to hover around it.

Bitcoin price action

In recent weeks, bitcoin showcased rollercoaster price action, dropping to as low as $53,500 in early July as wallets from defunct exchange Mt. Gox started their bitcoin repayments, triggering bearish predictions. However, favorable developments have since put bulls back on track.

Wallets linked to the German state of Saxony have emptied their entire stack of bitcoin. At the same time, Republican candidate Donald Trump’s pro-crypto stance has ushered in renewed hope. Trump has picked Ohio senator JD Vance, a crypto-friendly figure, as his 2024 running mate. In 2022, Vance held as much as $250,000 worth of BTC.

“A change in perspective on the digital assets industry in the US is creating expectations of more favorable policy toward Bitcoin and crypto as the elections look to capture single issue voters and special interest groups,” shared Nick Ruck, head of growth at BitU Protocol.

Trump and Vance

Odds of Trump winning the 2024 elections have shot up to 69% from 60% in the past week, data from betting application Polymarket show. This shift in sentiment has traders expecting less selling pressure in the long term as Mt Gox distributes funds to creditors.

Bitcoin’s future

With the crypto sector expecting a more favorable policy environment, bitcoin’s price is likely to continue its upward trend. As the market continues to monitor closely the Fed policies and implications of Mt Gox, one thing is certain - bitcoin is back in the spotlight.

Bitcoin back in the spotlight