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Cryptocurrency traders are increasingly optimistic due to the prospect of a government more supportive of digital assets, according to reports from industry professionals.

BTC and Major Altcoins Gain Momentum

Bitcoin (BTC) briefly surpassed $68,000 before settling at $67,500 during Monday’s Asian trading session, buoyed by bullish sentiment driven by favorable U.S. election expectations.

Altcoins Follow BTC’s Lead

Other major cryptocurrencies also saw gains: Ether (ETH) briefly touched $3,500, Cardano’s ADA and Solana’s SOL rose up to 5%, and dogecoin (DOGE) surged more than 8% before retracing some gains.

Market Reaction to U.S. Election Outlook

BTC’s rally began late Sunday following U.S. President Joe Biden’s announcement on X that he would not contest the upcoming November elections. This development lowered the odds of Republican candidate Donald Trump on Polymarket from 71% to 65% by Monday morning in Asia. Meanwhile, Vice President Kamala Harris’s odds rose from 16% to 30%.

My fellow Democrats, I have decided not to accept the nomination and to focus all my energies on my duties as President for the remainder of my term. My very first decision as the party nominee in 2020 was to pick Kamala Harris as my Vice President. And it’s been the best… pic.twitter.com/x8DnvuImJV

— Joe Biden (@JoeBiden) July 21, 2024

Crypto-Friendly Government Potential

Singapore-based crypto research firm Presto highlighted in a note to CoinDesk that Biden’s decision opens up the possibility of a more positive regulatory environment for the digital asset industry post-election, regardless of the election outcome.

Industry Perspectives

Presto noted, “The option for a constructive stance towards digital assets, previously unlikely, now exists,” although the direction would depend on Harris or other potential candidates.

Trump’s Influence and Market Sentiment

President Trump’s known support for cryptocurrencies has garnered significant backing from industry leaders in recent months. His upcoming appearance at the Bitcoin 2024 conference in Nashville further bolsters market confidence.

Market Analyst’s Insights

Lucy Hu, senior analyst at Metalpha, commented, “We anticipate the market rallying higher based on Trump’s economic policies favoring lower interest rates and reduced borrowing costs, which would benefit all risk assets, including BTC.”

“In the medium to long term, leading up to the 2025 elections, we foresee continued bullish momentum for BTC,” Hu added.