Bitcoin Surges Ahead of Stocks and Gold in October, Boosted by Election Outlook

Bitcoin is outperforming stocks and gold this month, with the cryptocurrency seeing a 4% increase in October so far. This surge is being attributed to growing optimism around the US regulatory environment for the crypto sector, especially in light of the upcoming presidential election.

Democratic nominee Kamala Harris recently announced her support for a regulatory framework for cryptocurrencies, a move that has been seen as positive for the industry. In contrast, Republican candidate Donald Trump has also shown support for the digital asset industry, making the race for votes in the tight election even more interesting.

“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,” said Noelle Acheson, author of the Crypto Is Macro Now newsletter.

Smaller tokens like Ether and Solana have also seen gains, along with crypto-linked shares such as Coinbase Global Inc. The industry has become a significant player in the election, with crypto businesses making large donations to political action committees in hopes of influencing regulatory decisions.

Historical data shows that October is typically a strong month for Bitcoin, with an average 20% increase over the past decade. Analysts are optimistic about the cryptocurrency’s performance in the coming weeks, with Sean Farrell of Fundstrat Global Advisors LLC noting that October’s seasonal strength tends to be weighted towards the latter half of the month.

Overall, the cryptocurrency market is buzzing with excitement as investors eagerly await the outcome of the election and the potential impact on the regulatory landscape for digital assets.