Bitcoin jumps as markets see increased odds of election victory for pro-crypto Trump

Bitcoin hit a two-week high Monday, as betting markets suggested an increased chance of victory for crypto-friendly candidate Donald Trump in the U.S. presidential election.

The value of the world's biggest cryptocurrency, bitcoin, was up 5.8% at $63,555.01, according to CoinGecko.

The rallyfollows the dramatic assassination attempt on the former presidenton Saturday.

"There is a 'parallel' to the 1981 shooting of President Reagan" even though that was not an election year, Ben Emons, chief investment officer at FedWatch Advisors, said in an emailed note.

"After the incident, Reagan's popularity catapulted amidst a double-dip recession. The S&P 500, however, fell 9% in the aftermath due to economic malaise. But in the current strong economy, former President Trump's favorability will likely skyrocket and impact markets positively."

Investors said over the weekend they expected so-called Trump victory trade to receive a boost. Those trades broadened to include various crypto stocks such as Coinbase Global and miner Riot Platforms, which were up 4.5% and 5.25%, respectively, in premarket trading.

"Bitcoin's price increased by about 9% over the weekend, which could signal that investors expect that a Trump presidency would create a more favorable regulatory climate for the crypto industry," Zach Pandl, head of research at Grayscale Investments, told CNBC by email.

Trump has yet to set out any detailed proposals regarding cryptocurrency regulation, but the Republican candidate is now seen as broadly supportive of the sector — despite his past skepticism. He is due to speak at a major annual bitcoin conference later this month.

The Trump campaign began accepting donations from the crypto industry in May and his messaging has become