Bitcoin price surged on Tuesday, driven by optimism surrounding potential friendlier crypto regulations in the U.S. amid speculation that Donald Trump could win a second term in the 2024 presidential race. Reports indicated that the Securities and Exchange Commission was nearing approval of exchange-traded funds linked to Ether, the world’s second-largest token, further enhancing the positive regulatory outlook.
In the past 24 hours, Bitcoin rose 2.3% to reach $64,073.6 by 01:27 ET (05:27 GMT). The speculation around Trump’s potential victory overshadowed concerns about selling pressure from the now-defunct crypto exchange Mt Gox, which had caused Bitcoin to plummet to as low as $54,000 earlier in July.
Bitcoin’s resurgence followed a failed assassination attempt on Trump over the weekend, which was perceived to boost his popularity and give him an advantage over President Joe Biden in the upcoming presidential race. Trump, who was officially nominated as the Republican candidate on Monday, has expressed support for the crypto industry, emphasizing the importance of developing the future of Bitcoin within the U.S. rather than abroad.
A potential second term for Trump is expected to bring a more favorable regulatory environment for crypto in the U.S., following a series of regulatory crackdowns by the SEC and the Department of Justice in recent years. The SEC is currently pursuing cases against XRP issuer Ripple and crypto exchange Coinbase, alleging the distribution of unregistered securities.
In the broader crypto market, altcoins saw an uptick in prices alongside Bitcoin. Ether rose by 2.6% to $3,420.75, with reports suggesting that the SEC had granted preliminary approval for spot ETFs, paving the way for trading to commence next week. The launch of spot Ether ETFs could attract a similar level of institutional investment as seen with Bitcoin earlier this year, driving prices to record highs.
Other altcoins, such as Dogecoin and Cardano, also experienced gains, while meme tokens like Shiba Inu and SafeMoon recorded notable increases. Overall, the crypto market showed signs of optimism fueled by regulatory developments and speculation surrounding the political landscape in the U.S.