The world of cryptocurrency and politics has always had a complex relationship, but recent developments are raising eyebrows. While Donald Trump’s popularity has surged on betting platforms, fueled by his appearance on Joe Rogan’s podcast, Bitcoin’s price movement seems to be going its own way.
Following Trump’s highly-watched interview on ‘The Joe Rogan Experience’, which garnered over 32 million views, his odds of winning the 2024 election soared on Polymarket, reaching 66.3% compared to Vice President Kamala Harris’s 33.7%. This surge fueled the initial perception of Bitcoin as the ‘Trump Trade’, but Bitcoin’s performance has been surprisingly muted, with only an 8% gain in October. This is a notable departure from the historical trend of stronger rallies during this month, averaging around 21%.
While Trump’s Rogan interview delved into a wide range of topics, including electoral reform, tax policies, and even the existence of extraterrestrial life, it was his repetition of claims about the 2020 election being ‘stolen’ and his pledge to end federal income tax that potentially caught the attention of Bitcoin investors. However, despite the political buzz surrounding Trump, Bitcoin’s price hasn’t mirrored his rising popularity on betting platforms, suggesting a weakening correlation between the two.
Analysts at QCP Capital believe broader economic indicators, rather than political sentiment alone, are driving Bitcoin’s current performance. The upcoming release of key economic data, including the Core Personal Consumption Expenditures (PCE) data and Non-Farm Payroll (NFP) reports, could have a more significant impact on Bitcoin’s price than political developments.
The divergence between Bitcoin’s price action and Trump’s political momentum has sparked a debate about the future of their relationship. As the cryptocurrency market continues to evolve, the question of whether political events will continue to influence Bitcoin’s price trajectory remains a point of contention.
The upcoming Benzinga Future of Digital Assets event on November 19 is likely to feature discussions on this evolving dynamic, offering valuable insights into the future of Bitcoin and its connection to the political landscape.
