Bitcoin (BTC) Price Surges Above $68,000 as Market Optimism Grows Around the Upcoming U.S. Election

Bitcoin's price is seeing a strong upward trend

Bitcoin (BTC) price action continues to heat up as the world’s largest cryptocurrency breached $68,000 once again, with market optimism simmering around the upcoming U.S. election and potential pro-crypto policies.

As the dust settles on August, BTC’s recent price momentum has been placing it in a prime setup for a potential rally, according to VanEck’s Head of Digital Assets, Matthew Sigel. In a recent interview with Bloomberg, Sigel highlighted a “bullish setup” for Bitcoin as investors and the market at large are aligning with pro-crypto sentiment surrounding the election.

"Maybe we're setting up for something similar to 2020, in terms of a pre-election period of low volatility, followed by a post-election period of very high activity and volatility, which would be consistent with increased demand for Bitcoin," explained Sigel.

This scenario would unfold as the market anticipates an administration known for its pro-crypto stance, potentially leading to greater demand for BTC.

Pro-Crypto Sentiment Bodes Well For Bitcoin Price

Recent betting odds have placed Donald Trump as the frontrunner in the upcoming election, currently polling at 66%. Trump’s administration is speculated to be more favorable towards cryptocurrencies, which could draw more buyers into the market.

"Bitcoin has also historically moved in the same direction as M2 money supply growth, and we know that we're in a very liquid environment with very low interest rates, both of which are bullish for Bitcoin," added Sigel.

This correlation to both money supply trends and political shifts underscores the broader economic and political landscape that may be influencing Bitcoin’s price movements.

Potential U.S. Debt Downgrade To Bring Market Impact

Aside from the election and liquidity factors, Sigel pointed towards Moody’s impending decision on the U.S. sovereign debt rating, which could bring further impact on the market.

"We're also going to be watching Moody's decision on whether to downgrade U.S. sovereign debt, which they're expected to decide on in the coming weeks or month," said Sigel.

Bitcoin’s next test would be the $70,000 mark as market watchers look for whether BTC will sustain this bullish trajectory before November’s election. The cryptocurrency’s price pattern suggests that further volatility may emerge, reinforcing its correlation to both money supply trends and political shifts.