Bitcoin Price Up 9% as Trump Debate Victory Sparks $2B BTC LONG Contracts

Bitcoin Price Analysis:

Bitcoin price surged to $63,700 in the early hours of July 1, 2024 as investors reacted to fresh developments surrounding US 2024 Presidential Elections. The BTC price surge has been accompanies by intense speculative activity. Can BTC sustain the upward trajectory and head towards $70,000 in the week ahead?

Why is Bitcoin Price Up today?

Bitcoin price surged to $63,700 in the early hours of July 1, 2024, marking a 9% increase from the previous Monday’s crash. This significant rise comes as investors react to developments surrounding the US 2024 Presidential Elections.

Bitcoin price surged to a 7-day peak of $63,699 in the early hours (GMT) of July 1. A closer look at the chart above also shows thatBTC has now erased losses booked during the widespread crypto market crash last Monday, June 24.

The recent boost in Bitcoin’s value is closely linked to a series of events that have unfolded in the political arena, particularly the recent debate between President Donald Trump and incumbent President Joe Biden. The debate ended in what many analysts have called a landslide victory for Donald Trump.

Notably, Donald Trump has been vocal about his support for Bitcoin and the broader cryptocurrency industry. Meanwhile his main opponent Joe Biden’s administration has been criticized for ostracizing the industry over the last 4 years of his tenure.

Impact of Donald Trump’s Debate Victory

Following the debate, Donald Trump saw a surge in support, with over $200 million worth of bets placed on his potential victory in the upcoming presidential election.

According to the decentralized predictions platform Polymarket, this massive influx of speculative bets has contributed to the heightened interest in Bitcoin. As of July 1, 2024, the total value of bets place on the US Elections has now exceeded $200 million. And at the time of writing crypto-friendly Donald Trump is the overwhelming favourite, cornering over 62% of all active bets.

The correlation between political events in the US and Bitcoin’s price is not new, as market sentiment often reacts to uncertainty and potential policy changes that could impact the economy.

However, the speculation activity has not been limited to the US elections markets alone. Crypto trading data also shows that Bitcoin as witness a significant surge in leveraged LONG positions as well.

Bitcoin Bulls Mount $2 billion LONG Contracts after Trump Debate Victory

Looking the beyond the price charts, Donald Trump’s debate victory seems to have boosted Bitcoin traders confidence in the asset’s short-term price prospects. The recent trends observed in the Bitcoin derivatives markets suggests that BTC has now recorded a significant surge in leverage bullish positions over the weekend.

Accompanying Bitcoin’s price increase is the notable activity in the derivatives market. Over the past week, BTC leveraged LONG positions have exceeded $2 billion, surpassing SHORTs by $1.2 billion.

This shift towards LONG contracts indicates a strong bullish sentiment among traders who are betting on the continued rise of Bitcoin’s price. The substantial volume of these contracts highlights the speculative nature of the current market, with many investors looking to capitalize on short-term price movements.

The spike in derivatives contracts can be attributed to various factors, including the political developments mentioned earlier and broader market dynamics.

Without an accompanying organic bullish catalyst i.e ETFs demand, the heightened speculative activity puts BTC in danger of another reversal in the week ahead.

Looking ahead, US Non-Farm Jobs data to be released on July 5 could also be pivotal to the Bitcoin mid-term price trajectory.