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Bitcoin hit a new all-time high of $75,000 on Coinbase, surpassing its previous record of $73,800 from March.
The catalyst behind this price rally appears to be tied to the U.S. presidential election results, where early returns show Donald Trump ahead in the race.
US Election Sparks Bitcoin's Surge
Bitcoin's impressive rise began on November 5 when the U.S. elections injected volatility into the market. As polling stations closed and more results trickled in, Bitcoin's price shot up over 3%, reaching an intra-day high of $70,577.
By early morning on November 6, Bitcoin had surged past its previous all-time high, hitting $75,000.85 on Coinbase, according to TradingView.
At the same time, early election results showed Donald Trump leading with 247 electoral votes compared to Kamala Harris’s 210, according to The New York Times, at press time. With 270 electoral votes needed to win, these results gave a boost to the "Trump trade" in financial markets.
Traders anticipated that a Trump presidency might bring favorable policies for risk assets, including cryptocurrencies.
The 'Trump Trade' and Its Impact on Crypto
As the Republican candidate gained ground in the election, markets responded positively, with Bitcoin leading the charge among risk assets. Over the past 24 hours, Bitcoin has climbed more than 9%, a remarkable figure that reflects investor optimism surrounding Trump’s pro-crypto stance.
Trump has been vocal about his support for the digital asset industry, a message that has resonated strongly with crypto enthusiasts. His promise to fire SEC Chairman Gary Gensler and establish a national Bitcoin reserve has generated excitement.
Gensler’s regulatory policies, which have often been seen as unfavorable to cryptocurrencies, have made him a target among crypto advocates. Trump's proposed initiatives have further fueled expectations that the digital currency sector could thrive under his leadership.
Bitcoin’s Volatility: A Continuing Theme
While Bitcoin’s price has reached new heights, the cryptocurrency market remains volatile. On November 4, 2024, Bitcoin ETFs saw rare outflows, totaling $541.1 million, as major funds like Fidelity, ArkInvest, Bitwise, and Grayscale pulled out, per SoSoValue data.
However, BlackRock’s IBIT ETF saw inflows of $38.3 million. Adding to that, Bitcoin spot ETFs also saw $116.9 million in outflows on Nov. 5.
While Bitcoin’s price surge is significant, experts warn that it may not be sustained without adjustments in investor positioning.
The Ripple Effect Across the Crypto Market
Bitcoin’s all-time high has sparked a broader rally across the cryptocurrency space. Ether (ETH), the second-largest digital asset, has risen over 7% in the past 24 hours, trading at $2,600. The rally has extended to memecoins as well, with Dogecoin surging by more than 25% and Shiba Inu seeing a 10% increase.