Egypt Daily News – The price of Bitcoin rose to its highest level in two weeks after U.S. Vice President Kamala Harris pledged to provide a regulatory framework for cryptocurrencies.
This commitment boosted the optimism that emerged during Asian trading hours, as speculators saw the mixed reaction to the latest economic stimulus measures in China as a reason to seize cryptocurrencies instead of Chinese stocks.
The price of the largest cryptocurrency rose by 5.6% on Monday, before trimming some of its gains to trade at $65,585 by 2:04 PM in New York. The smaller cryptocurrencies, “Ether” and “Solana,” also made gains.
Harris’s pledge to support a regulatory framework came after years of complaints from cryptocurrency industry officials that U.S. officials had taken an enforcement-based approach to regulation instead of providing regulatory clarity.
It is noted that former President Donald Trump is actively seeking to win the votes of cryptocurrency supporters during his current presidential campaign, and he has several initiatives related to this field.
Noelle Acheson, author of the “Crypto Is Macro Now” newsletter, said the rise is largely tied to the elections, starting with Trump’s lead in prediction markets and polls, and then due to semi-supportive statements from Harris’s campaign regarding cryptocurrency markets.
She added, “I haven’t seen the details of Harris’s cryptocurrency policy yet, but it seems less negative than the Biden administration.”
Volatility of cryptocurrency markets
The prediction market has fluctuated over the past few days, giving Trump better chances of winning compared to Harris.
Similarly, the stocks of companies linked to Bitcoin rose, with the value of Coinbase jumping by nearly 9%, and the mining company Mara Holdings increasing by 5%. As for MicroStrategy, it stabilized after a 16% rise on Friday.
At the same time, the bankrupt trading platform “Mt. Gox) last week extended the deadline for debt repayment to creditors to October 31, 2025, which Arkham Intelligence estimates to be around $2.9 billion. This delay calms concerns about an increase in supply resulting from creditors selling the “Bitcoin” they recovered.
Benjamin Seliermajer, co-head of investment at Magnet Capital, said: “Trump’s improved poll results will increase the market’s acceptance of positive news and its impact on prices.” He added: “Good news like the postponement of the Mt. Gox debt repayment plan will be received more positively by the markets.”
It is noted that Bitcoin rose in October after a weak start to the month, which recorded an average increase of 20% over the past decade, according to data collected by Bloomberg.
The seasonal strength of cryptocurrencies
Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors LLC, noted in a memo that “historical data indicates that the seasonal strength of October in cryptocurrency markets typically tends to the latter half of the month.”
At a time when China is striving to revive its economy, the briefing on fiscal policy that was awaited for a while over the weekend did not precisely specify the amount of financial stimulus the government intends to inject. Economists doubt that officials are doing enough to overcome the recession, as the record surge in Chinese stocks has begun to wane.
Caroline Morron, co-founder of Orbit Markets, a liquidity provider for cryptocurrency derivatives trading, said: “Markets might be treating the disappointing stimulus in China as positive news for Bitcoin, as it was previously believed that capital outflows from Bitcoin to Chinese stocks were putting pressure on cryptocurrency prices.”
