Price Approaches $65K as Trump’s Bets Mitigate Mt. Gox Concerns

Bitcoin’s price experienced an uptick on Wednesday, continuing a recent recovery trend. This increase was mainly attributed to growing speculation that a potential Donald Trump presidency could lead to a more favorable regulatory landscape for cryptocurrencies. This optimism helped mitigate concerns stemming from potential selling pressure related to the defunct Mt. Gox exchange.

In addition, there was renewed interest in the cryptocurrency market due to expectations surrounding the approval of spot exchange-traded funds (ETFs) for Ether. Reports suggested that the U.S. Securities and Exchange Commission was nearing a decision on various applications submitted by fund operators.

Bitcoin rose by 1.7% over the past 24 hours, reaching $64,848.7 by 08:48 ET. Furthermore, market sentiment was bolstered by increasing hopes that the Federal Reserve would lower interest rates in the upcoming months.

### Trump’s Influence on Bitcoin’s Recovery

The surge in Bitcoin’s value has largely been fueled by speculation that Trump could secure a second term. The former president has championed pro-crypto policies in his recent campaigns and is slated to speak at the upcoming Bitcoin Conference in Nashville. Additionally, an attempted assassination on Trump over the weekend seemingly contributed to a spike in his popularity.

On Tuesday, Trump announced his plans to release a fourth collection of non-fungible tokens (NFTs) and confirmed that his campaign accepts cryptocurrency donations.

### Mt. Gox and Bitcoin Movements

The defunct Mt. Gox exchange has reportedly moved about $2.8 billion worth of Bitcoin this week, likely as part of its plan to distribute funds to creditors affected by a significant hack in 2014. The exchange is expected to begin returning stolen tokens to creditors starting in July. There were concerns that this would lead to an influx of Bitcoin into the market, which had previously driven prices down to their lowest levels in over four months. However, Bitcoin has regained its value over the past four days.

### Overall Crypto Market Trends

The broader cryptocurrency market also saw gains, with major altcoins rising in tandem with the favorable regulatory sentiment in the U.S. Ether increased by 1.1% to $3,456.94, supported by the anticipation of imminent SEC approvals for spot ETFs. Other significant cryptocurrencies also posted gains, while some meme tokens experienced slight fluctuations.

### Potential Shift in Investment Trends

According to Marex Solutions, the recent transition on Wall Street from mega-cap stocks to small-cap stocks may offer an additional boost to the crypto market. The Nasdaq, which includes several major tech firms, has remained relatively stagnant, while small-cap indexes have surged by over 12% since early July. This rotation in investor interest could benefit cryptocurrencies, as funds are redirected towards smaller assets. Marex anticipates that this shift could particularly favor Ether and the expected launch of spot Ether ETFs.

Their perspective highlights the possibility that the dynamics influencing cryptocurrencies may extend beyond trends in the Nasdaq, suggesting a broader economic narrative at play.