Excitement around the U.S. presidential election is drawing investors to cryptocurrency. So, who’s on crypto’s side, and why?

Early Tuesday, Bitcoin prices surged above $71,000 for the first time since early June. The OG token is seeing a boost in the lead-up to the historical U.S. presidential election on November 5.

BTCUSD Chart by TradingView

Crypto traders are on edge, with the stakes higher than ever as Republican Donald Trump and Democrat Kamala Harris remain neck and neck in a heated race for the presidency.

Market sentiment seems to be factoring in a potential Trump victory. At his campaign rallies, Trump has repeatedly promised to support pro-crypto legislation, even expressing a desire for all Bitcoin to be "made in the USA." His stance on income tax and unrealized capital gains has garnered support on Wall Street, creating a favorable environment for crypto investments.

Meanwhile, Vice President Kamala Harris’s campaign has also shown interest in cryptocurrency as part of her economic vision aimed at appealing to younger, tech-forward voters. Harris has described crypto as one of the "industries of the future" that she would support, though she advocates for a more cautious regulatory framework for the industry.

The market is anticipating that the next administration, whether led by Trump or Harris, might adopt a friendlier approach toward the cryptocurrency sector. Both candidates have expressed a desire for clearer regulations for digital assets, and Trump, in particular, has actively sought support from the crypto community.

This political backdrop is enhancing positive market sentiment, adding to Bitcoin’s momentum.

It’s not just digital assets that are experiencing gains. Truth Social stock has gain more than 200% over the past month, driven by optimism from traders backing the Republican candidate, making it a prominent addition to the list of market movers.

Trump Stock Chart by TradingView

Bitcoin has been on a strong upward trajectory this month, aligning with the "Uptober" trend. Interestingly, it’s closing in on its all-time high from March, when it reached a record of $73,000, now just 3% away from that level. Expect Bitcoin to dominate the headlines if it hits a new peak.

However, while October’s performance is significant, the broader economic picture also matters. Key economic data, including nonfarm payrolls (NFP), the consumer price index, and retail sales, have all influenced Bitcoin’s recent upward trend.

So, while historical trends may provide insight, preparing for what’s ahead may be the better strategy.