According to the Zhitong Finance APP, Bitcoin hit a two-week high on Monday, as the gambling market showed an increased likelihood of Donald Trump, who is seen as friendly to cryptocurrencies, winning the US presidential election. As of the time of publication, the price of the world's largest cryptocurrency, Bitcoin, has risen by 7.86%, reaching $64,644.00.

Prior to this, Trump was assassinated on Saturday.

"This event is 'similar' to the shooting of President Reagan in 1981," said Ben Emons, chief investment officer at FedWatch Advisors, although it was not an election year that year.

"After the event, Reagan's popularity soared in the midst of a double-dip in the economy. However, the S&P 500 index fell 9% as a result of the economic downturn. But with the current strong economic situation, former President Trump's approval rating may soar, which could have a positive effect on the market."

Investors said over the weekend that they expect so-called Trump victory trades to get a boost. These trades range from various crypto stocks such as Coinbase (COIN.US) and mining company Riot Platforms (RIOT.US). As of Monday's close, Coinbase rose over 11% and Riot Platforms rose over 17%.

"Bitcoin rose about 9% over the weekend, which may indicate that investors are expecting President Trump's election to create a more favorable regulatory environment for the crypto industry," said Zach Pandl, Head of Research at Grayscale Investments.

Trump has yet to put forward any detailed proposals on cryptocurrency regulation, but the Republican candidate is now seen as widely supportive of the industry - despite his past skepticism. He is due to speak at an important annual Bitcoin conference later this month.

In May of this year, the Trump campaign began accepting donations from the crypto industry, and his views on such digital assets have become increasingly positive. He has also tried to position himself as an opponent of Democratic senators such as Elizabeth Warren who support financial controls.

"Additionally, macro policy changes in Trump's second presidential term - including sustained deficit spending, a declining US leadership position in international affairs, a weakening of the Fed's independence, and a desire for currency depreciation to help narrow the trade deficit - could result in downside risks to the dollar in the medium term. Any downside risks to the dollar could support Bitcoin prices," Pandl added.

Last month, analysts at Standard Chartered Bank said the US presidential election was the next key catalyst for Bitcoin's price, and a Trump victory could push Bitcoin prices up to $0.15 million by the end of the year.

"In recent months, cryptocurrencies have been going through a tough time. We are currently in a period of weakness, with capital that previously flowed into the market now frozen, measured by the capitalization of stable coins, which has been frozen for the past two months," said Grzegorz Drozdz, market analyst for Conotoxia.

With the increased likelihood of Trump being elected president and the reduced risk of civil unrest and turmoil in the US, Drozdz now sees the possibility of a "surge in market confidence" which could have a positive impact on cryptocurrencies and Bitcoin in the coming weeks.