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

• Traders anticipate bitcoin rallying to $70,000, buoyed by a more optimistic macro environment and the prospect of a crypto-friendly U.S. administration under Donald Trump.
• Reduced selling pressure from key wallets and a more positive political outlook for the crypto sector have contributed to the bullish sentiment, despite recent volatility and concerns over Mt. Gox repayments.

Bitcoin BTC$89,363.30 traders expect prices to touch as much as $70,000 in the near term as sentiment around the broader crypto sector bumps ahead of the U.S. elections and selling pressure from key wallets subsides.

“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, in a Wednesday message to CoinDesk. “The market was encouraged by Trump’s vice president pick, which indicates a more crypto-friendly administration and policies.”

“BTC could hover around the 120-day moving average, and the price may have the momentum to go up to $68k or even $70k, but we need to continue to monitor closely the Fed policies and implications of Mt Gox,” Hu added.

Moving average is a technical indicator that sums price data over time to determine a trend's direction. A 120-day moving average is widely used as a long-term indicator.

BTC showcased rollercoaster price action in the past few weeks, dropping to as low as $53,500 in early July as wallets from defunct exchange Mt. Gox started their bitcoin repayments, triggering bearish predictions.

But 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, in a Telegram message.

“There’s also less expected sell pressure in the long term as Mt Gox distributes funds to creditors,” Ruck added.

Odds of Trump winning the 2024 elections have shot up to 69% from 60% in the past week, data from betting application Polymarket show.