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Bitcoin Stocks rose overnight, hitting all-time highs as investors bet that former President Donald Trump was gaining an advantage in the US election as the results came in.
The price of the major cryptocurrency has reached a record high of $75,000, according to Coin Metrics. It was last up 7% at $74,392.00. It debuted the previous record of $73,797.68 on March 14 and has traded in a narrow range below $70,000 for most of the year since.
Bitcoin's gains increased overnight as Trump took an early lead in the Electoral College. NBC News projected that Trump had won 230 electoral college votes, including the battleground state of North Carolina.
Drainage agent Coinbase It rose 3% in after-hours trading, while… Accurate strategyadvanced 4%.
Investors expect Bitcoin trading to be volatile until a clear winner is announced. A win by Vice President Kamala Harris is expected to risk downward movements for the Bitcoin price, while traders are anticipating a rise in the price if former President Donald Trump wins.
Bitcoin rises above $71,000 on election night
“The election has a huge impact on cryptocurrencies,” said Ryan Rasmussen, head of research at Bitwise Asset Management. “Expect Bitcoin – and cryptocurrencies more broadly – to be volatile in the coming days…until we get final election results.”
“If Trump wins, I think we will see new all-time highs,” Rasmussen added. “If Harris wins, I expect a good sell-off in the short term, with prices taking a month or two to recover. But ultimately, either way, I think we will go higher.”
In the 2012, 2016, and 2020 elections, Bitcoin saw returns of about 87%, 44%, and 145% in the 90 days following Election Day, respectively. This is partly because election years fall on half of bitcoin years, when the supply of the cryptocurrency plummets. Post-election returns also tend to align with major shifts in Federal Reserve policy. This year, the market is looking forward to further interest rate cuts.
At just under $70,000, bitcoin was trading at fair value ahead of Election Day, according to CryptoQuant. This means that if the election proves to be a positive catalyst in the coming days, Bitcoin could rally and prepare to set a new record, said Cryptoquant analyst Julio Moreno.
“For now, everyone we've spoken to is keeping calm,” said James Davies, CEO of crypto futures and options trading platform Crypto Valley Exchange. “I've heard from many top market makers and traders, and I can say with all conviction that almost everyone is ready to respond. They don't even know which way the markets will go based on the outcome. There will likely be a massive sell-off – range volatility whatever the outcome “
This year's presidential elections have been described as the most important in the life of the cryptocurrency industry. Harris' win is viewed by many as a threat to cryptocurrencies, something that has been discussed throughout this election cycle. Trump, on the other hand, is viewed by many as a force for good in the industry after he presented himself earlier this year as a pro-crypto candidate and was courting the industry more directly than Harris did.
Many voters are concerned about the state of the government deficit, which rose 8% in fiscal year 2024 to $1.8 trillion, and the increased tax cuts promised by both candidates. Many investors view Bitcoin, like gold, as a hedge against the potential for fiscal and monetary policy to combine to devalue the dollar and raise inflation.
