Bitcoin’s bullish rally gains speed with the U.S. election on the horizon, drawing investor interest as inflation concerns and pro-crypto candidate Trump fuel its rise. With BTC approaching historic highs, markets anticipate a major move as election day nears.

Bitcoin’s Bullish Setup Gains Momentum as Election Nears

Matthew Sigel, head of digital assets research at VanEck, told CNBC on October 28 that investors are bracing for the US presidential election in November, and Bitcoin's performance is providing a "very bullish setup" for the digital asset.

"Our bet is that this is a very bullish setup for Bitcoin going into the election," Sigel stated. He also added:

"We saw the same pattern in 2020: Bitcoin was quiet before rallying with high volatility once a winner was announced."

Spot Prices Hint at Record Highs

Per Cointelegraph, spot Bitcoin prices surpassed $69,000 on October 28th, suggesting a possible surge toward all-time highs in the run-up to the elections.

"Bitcoin is […] up 100% over the past year," Sigel stated. "It seems this latest run from $57,000 to almost $70,000 is correlated with Trump’s improving odds on betting sites."

On betting sites like Kalshi and Polymarket, former US president Donald Trump has a huge lead over his opponents. As of October 28th, the platforms indicate that Trump has a 62% chance of being elected, while the other website puts the probability at 66%.

Pro-Crypto vs. Neutral Stances in Election

Democratic candidate Kamala Harris has been mostly silent on the industry, in contrast to Republican contender Donald Trump, who has stated his desire to make America "the crypto capital of the world" in November's election.

“Trump is viewed as the more pro-crypto candidate, while Vice President Harris hasn’t shown much interest in it,” Sigel explained.

Inflation Adds Fuel to Bitcoin’s Appeal

Paul Tudor Jones, a hedge fund manager, told CNBC on October 22 that "all roads lead to inflation," meaning that rising prices will be good for Bitcoin and other commodities regardless of who wins the election.

Jones, the founder of Tudor Investment Corporation, a hedge fund, stated on CNBC's Squawk Box, "I probably have some basket of gold, Bitcoin, commodities and Nasdaq [technology stocks], and I would own zero fixed income."

VanEck’s Long-Term Projection for Bitcoin

According to a research dated July 24, VanEck predicts that by 2050, the decentralized currency may reach a price of around $2.9 million per coin due to the high demand for it as a reserve for central banks and as collateral for trade settlement.

"We do have a long-term model that assumes Bitcoin could become a reserve asset by 2050, held by central banks and used in global trade," stated Sigel.

“If Bitcoin reached a modest 2% weight in global central bank reserves, our model projects a price of around $3 million per Bitcoin.”