Bitcoin Soars to Record $75,000 Amid Election Uncertainty
Bitcoin surged to an unprecedented high on Tuesday evening, reaching $75,000 as investors speculated that former President Donald Trump was gaining traction in the U.S. election. As results trickled in, the flagship cryptocurrency’s price spiked, reflecting heightened optimism among traders anticipating a Trump advantage. The cryptocurrency touched this all-time peak based on data from Coin Metrics, before stabilizing slightly to $74,315.91, marking a 10% increase. The previous record of $73,797.68 had been set on March 14, with Bitcoin’s trading in a narrow range below $70,000 for much of the intervening months.
Bitcoin Gains Momentum Amid Early Election Lead
Bitcoin’s late-night rally intensified as Trump took an early lead in the Electoral College, although major swing states remained uncalled. Market volatility increased, with traders watching closely for indications of who might secure the presidency. Investors believe that if Trump ultimately wins, Bitcoin could see further gains. On the other hand, if Vice President Kamala Harris wins, traders anticipate a possible dip in the cryptocurrency’s value.
As Bitcoin prices climbed, key industry players also benefited. Cryptocurrency exchange Coinbase saw its shares rise 3% in after-hours trading, while MicroStrategy, a company known for its extensive Bitcoin holdings, saw its stock price rise by 4%.
Election Impact on Bitcoin Price and Volatility
Traders are expecting significant Bitcoin volatility until a clear election winner emerges. With results still uncertain, both directions remain plausible. A Harris victory is thought to pose a potential downside risk for Bitcoin, as traders anticipate policies less favorable to cryptocurrency growth. Conversely, a Trump win is seen as a potential boost for the crypto sector.
The ongoing election has had a substantial impact on the cryptocurrency market, with analysts predicting that Bitcoin and other digital assets will experience significant price swings. According to Ryan Rasmussen, head of research at Bitwise Asset Management, Bitcoin and other cryptocurrencies may continue to be volatile in the coming days until election results are finalized. Rasmussen believes that if Trump wins, Bitcoin is likely to hit new all-time highs. If Harris wins, the market might see a short-term sell-off with a recovery expected over a month or two. In the long term, however, Rasmussen sees an upward trajectory regardless of the outcome.
Election Year Trends and the Role of Bitcoin Halving
Historical data suggests a connection between election years and Bitcoin’s performance. In previous election years, Bitcoin delivered impressive returns in the three months following election day: 87% in 2012, 44% in 2016, and 145% in 2020. Analysts attribute these gains in part to Bitcoin halving events that coincide with election years, during which the cryptocurrency’s supply is reduced. Such events, along with potential Federal Reserve policy adjustments, have historically bolstered Bitcoin prices in the months following elections.
As of Tuesday, Bitcoin’s fair value was estimated to be slightly below $70,000, making the new election-fueled high particularly notable.
