Bitcoin to benefit from 'the Trump trade' ahead of November US elections, analysts say

Bitcoin BTC +0.79% is expected to benefit from "the Trump trade" over the next 105 days leading up to the November elections, analysts said.

The digital asset, along with certain stocks, is likely to be buoyed by anticipation of a Donald Trump victory, according to Monday's ZeroCap crypto market report. "'The Trump Trade' has become a major catalyst to a sustained move higher from here, with investors going long energy, banks and bitcoin," ZeroCap analysts said.

Joe Biden steps out of presidential race

According to the ZeroCap report, the possibility of Donald Trump returning to the White House has been strengthened by incumbent U.S. President Joe Biden's announcement that he will withdraw from the election and his subsequent endorsement of Vice President Kamala Harris as his successor in the race, adding that Harris is less popular in opinion polls than the incumbent Biden.

In light of this, the analysts said the latest developments at the top of the Democrat Party increase the possibility of a pro-crypto government come November.

"Trump has said he’ll release Ross Ulbricht, Silk Road Founder serving two life sentences, and has stated that he wants to enable innovation in the crypto space through looser regulation," the report said.

Kamala Harris-inspired memecoin surges after endorsement

Since Biden stepped out of the presidential race, Kamala Harris has secured support from major political figures to be the Democrats' new presidential nominee. Former president Bill Clinton and former Secretary of State Hillary Clinton were among the politicians who endorsed Harris in the hours following Biden's announcement.

The endorsement of Harris was reflected in the memecoin market. According to CryptoQuant data , a misspelled memecoin inspired by Kamala Harris, named Kamala Horris (ticker: KAMA), surged over 50% in the past 24 hours. In contrast, the misspelled Joe Biden-inspired coin, Jeo Boden (ticker: BODEN), dropped 70% during the same period.

Amid the cryptocurrency market's recent upswing, bitcoin reached a daily high of $68,400 today. If this momentum continues, it could close in on its all-time high of over $73,000.