The price of Bitcoin crossed $75,000 on anticipation of a victory for former US President Donald Trump in the US election.
Early today, the most popular cryptocurrency was trading at $75,317.59, up over 8.41 percent. The crypto had crossed the $73,000 level in March, but dropped since then. It was at 53,949.09 on September 7.
Trump win anticipated
The cryptocurrency surged as Republican Party candidate Trump held the lead with 267 electoral votes, compared to 224 by Democratic Party candidate and vice president Kamala Harris, as of 12.32am UAE time.
“Bitcoin has just hit a new record high, reaching $75,000 as the market continues to price in a Donald Trump victory in the US elections. The asset is now in price discovery, and the momentum from this could continue to push the price higher, meaning Bitcoin could potentially reach six figures within a few months,” said Josh Gilbert, market analyst at eToro.
“Volatility will certainly stay high for crypto assets over the next week, especially with the Federal Reserve meeting later this week,” Gilbert added.
Institutional appetite for Bitcoin is also growing at a time when interest rates are set to fall sharply and risk assets are gaining more traction. Monthly inflows to Bitcoin ETFs are picking up significantly, with over $5 billion in net flow in October.
“This record high could also be the driver that brings retail interest back to the ‘euphoria’ levels we’ve seen in previous cycles, that the asset class hasn’t quite experienced this year,” said Gilbert.
Mixed trends
The cryptocurrency market had showed mixed trends on Tuesday as investors awaited the outcome of the closely contested US presidential election. However, the global cryptocurrency market cap rose 0.36 percent over the past 24 hours, reaching around $2.26 trillion.
Read | How will the US election affect the stock market and trade: Insights and impacts
Bitcoin’s price has experienced a rollercoaster ride since March 2024. Following a period of steady growth, the cryptocurrency surged to a new all-time high of over $73,000 in March. This surge was fueled by a combination of factors, including increased institutional adoption, positive regulatory developments, and the anticipation of the Bitcoin halving event in April 2024.
However, the price of Bitcoin had since retraced somewhat. It’s important to note that Bitcoin’s price has historically been volatile, with periods of rapid growth followed by periods of consolidation or decline.
What a Trump win means
The value of the US dollar is a critical factor in international trade and finance, making the election outcome significant for global markets.
Read: Largest Bitcoin mining companies
“Trump’s possible expansionary fiscal policies could strengthen the dollar, benefiting US imports but adding pressure to emerging market currencies that rely on dollar stability. His protectionist measures may drive short-term appreciation of the dollar but could create volatility if trade restrictions strain global financial flows,” said Amro Zakaria, a financial services industry strategist.
“Meanwhile, Harris would likely promote a more stable fiscal environment, which could bring predictability to currency markets. Her emphasis on international cooperation and steady trade relations may curb currency volatility, appealing to multinational investors. Her moderate fiscal approach may result in a less rapid dollar appreciation, offering a steady environment for global trade,” he added.
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