Trump's election chances could impact Bitcoin and crypto prices

Donald Trump's Polymarket winning odds is showing signs of correlation with the crypto market as the US presidential elections approach.

Trump's crypto support is influencing investors’ positioning ahead of election

The Republican presidential candidate has wooed top crypto voices and community members through several actions, including accepting crypto donations and dedicating a part of the GOP platform to cryptocurrencies and blockchain.

The former president also announced the launch of a new crypto platform known as World Liberty Financial, with both his sons fully involved. The platform has already garnered much of the crypto industry's attention, with almost 150K members on its Telegram page.

Bernstein analysts predicted that a Trump win could send Bitcoin's price to $80,000, while a Harris win could see the top asset decline over 60% to $20,000. 

The prediction is based on the crypto industry's sentiment towards both administrations. While there has been much backing for Trump and the Republicans, Democrats and candidate Kamala Harris have not received much support from crypto community members.

As the elections draw closer, several crypto investors are positioning their investments based on the Polymarket odds of Trump and Harris. Many expect a Trump victory to lead to another price rally for Bitcoin, while a Kamala Harris win could negatively affect crypto prices. 

This is due to the Harris campaign's lack of clarity on her stand on crypto. Several crypto community members are also skeptical of another Democratic administration following the series of enforcement actions against crypto companies in the past few years.

Notably, President Biden's veto of SAB-121 earlier in the year also forced several crypto community members to shift attention toward Trump.

Trump's Polymarket odds faced strong competition in August after Kamala Harris's odds rose sharply. The Republican candidate retook the lead later in the month after news of a potential Harris anti-crypto administration surfaced.

Over the past few days, Trump has been behind on odds against Harris. This began after their debate on Wednesday night, where it seemed the Democrat candidate outmatched him. Consequently, the price of Bitcoin has declined after a brief rally based on hopes of the Federal Reserve (Fed) cutting rates by 50 basis points.

Notably, Bitcoin's price jumped over 6% in July after an assassination attempt on Donald Trump. This also resulted in a surge in Trump's winning odds on Polymarket.

Another notable event was Trump's appearance at the Bitcoin Conference in Nashville, which briefly caused prices to rise.

Meanwhile, PolitiFi tokens named after Donald Trump have all been down over 10% in the past 24 hours. MAGA, TREMP and STRUMP are all down 10%, 10% and 14% on the day, respectively, amid reports of a second alleged assassination attempt on Trump over the weekend.