Bitcoin surged to its highest level in two weeks, spurred by Vice President Kamala Harris’ pledge to support a regulatory framework for cryptocurrencies. This move has been seen as a breath of fresh air for the crypto industry, which has long criticized the U.S. government for its approach to regulation through enforcement rather than offering clear guidelines.
The optimism surrounding Harris’ promise was further boosted during Asian trading hours, as traders reacted to China’s latest economic stimulus measures. Interestingly, speculators seem more inclined to bet on cryptocurrencies than on Chinese stocks. As a result, Bitcoin spiked as much as 5.6% on Monday, hitting $65,585 before easing slightly. Alongside Bitcoin, smaller tokens like Ethereum and Solana also saw upward momentum.
The Election Factor in Crypto
Harris’ pledge comes at a time when former President Donald Trump is actively courting the crypto community in his presidential race. He’s made several crypto-related moves that resonate with digital asset investors. Analysts suggest the recent bump in Bitcoin’s price is largely election-driven, with Trump’s increasing poll numbers contributing to the market’s bullish sentiment.
“The bump is largely election-driven, initially from Trump’s lead in both prediction markets and polls, and later from semi-supportive statements regarding crypto markets from the Harris campaign,” noted Noelle Acheson, author of the Crypto Is Macro Now newsletter. Although the Harris campaign has not yet released specific details about its crypto policy, her statements appear less negative than those of the current administration under President Joe Biden.
Prediction markets have recently tilted in Trump’s favor, assigning him higher odds of victory over Harris, which further fuels the speculation-driven price surge in Bitcoin.
Market Reactions
The rally wasn’t limited to cryptocurrencies alone. Bitcoin-related companies saw their stock prices rise, with digital exchange Coinbase gaining about 9% and MARA Holdings, a leading Bitcoin mining firm, climbing 5%. Meanwhile, MicroStrategy, a company heavily invested in Bitcoin, remained relatively stable after a 16% surge last Friday.
Adding to the positive sentiment was the news surrounding the long-bankrupt Mt. Gox crypto exchange. The repayment deadline for its remaining assets, valued at approximately $2.9 billion, has been postponed by another year to October 31, 2025. This delay alleviates fears of a sudden influx of Bitcoin flooding the market from creditors looking to cash in.
“Good news such as the Mt. Gox delayed repayment plan will be received more positively, especially with Trump polling improving,” said Benjamin Celermajer, co-chief investment officer at Magnet Capital.
Historical Trends & China’s Influence
Bitcoin’s latest rally has pushed it into positive territory for October, traditionally a strong month for the crypto market. Over the past decade, Bitcoin has posted an average 20% gain in October, with the latter half of the month historically seeing the most significant price increases. “Historical data suggests that October’s seasonal strength in crypto markets is typically weighted toward the latter half of the month,” explained Sean Farrell, head of digital-asset strategy at Fundstrat Global Advisors LLC.
Meanwhile, China’s latest efforts to revive its slowing economy fell short of expectations. The lack of specific details in the government’s weekend policy briefing left economists questioning whether officials are doing enough to combat deflation. With capital flowing away from Chinese equities, Bitcoin appears to be the beneficiary of this shift in investor sentiment.
“Markets are probably taking a disappointing China stimulus to be positive news for Bitcoin,” said Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for digital-asset derivatives trading. “Capital rotation from Bitcoin into Chinese equities was understood to be previously weighing on crypto prices.”
As Bitcoin continues to show strength amid global economic uncertainty and election-driven speculation, the upcoming months will be crucial in determining whether this rally has the momentum to sustain itself.
