Bitcoin has achieved a new milestone, surpassing $75,000 for the first time in its history. This latest record was reached on Wednesday after the cryptocurrency rose 8.4% to $75,060, breaking its previous high of $73,750. Analysts credit the ongoing US presidential election as a significant factor driving this surge. With early exit polls indicating a narrow lead for Donald Trump, investors are speculating that a Trump victory could bring favorable regulatory changes for the crypto industry.
As per the preliminary results, Trump has taken the lead in eight states, while Democratic candidate Kamala Harris has won in three states and Washington, DC. “Trump’s policies are often perceived as more beneficial to the crypto sector, sparking optimism among investors,” said crypto analyst James Morgan. By comparison, Harris’s center-left policies are viewed as less supportive of the digital currency market. These developments have led to a sharp rise in Bitcoin’s price as well as increases in other major cryptocurrencies, reflecting a broader rally across the sector.
Ether, the second-largest cryptocurrency by market cap, saw a 7.2% rise to $2,576, while other altcoins also gained traction. Solana jumped by 13.5%, Dogecoin surged 21.6%, and tokens such as Cardano, Shiba Inu, Avalanche, and Chainlink recorded gains ranging from 5% to 12.3%. This collective rise highlights the crypto market’s sensitivity to political developments and its anticipation of potential policy shifts under a Trump administration. The market sees the possibility of new policies that could favorably impact both individual investors and institutional players within the crypto space.
The effect of the US presidential election has not been limited to cryptocurrencies. Traditional financial markets have also seen shifts in response to the exit poll results. The US dollar index, which measures the dollar’s strength against other major currencies, climbed by 1.25%, reaching 104.72. This uptick suggests that investors are preparing for inflationary pressures and economic shifts potentially driven by Trump’s proposed policies, which include tax cuts, stricter immigration laws, and higher tariffs. Financial analysts speculate that these policies could increase inflation and affect bond yields, adding to the appeal of riskier assets like Bitcoin and other digital currencies.
US Treasury yields responded to the election results as well, with the 10-year Treasury yield reaching 4.351% and the two-year yield rising to 4.241%. Such increases signal potential economic tightening under a Trump administration, which could further drive inflation and boost bond yields. Analysts note that this trend could indirectly benefit Bitcoin and other cryptocurrencies, as investors seek alternatives to hedge against inflation and economic volatility.
With Bitcoin’s market cap now soaring to $1.445 trillion, the cryptocurrency continues to solidify its position as the world’s largest digital asset, commanding a dominant 59.86% share of the total crypto market. In addition, trading volumes for Bitcoin saw a dramatic 40.89% increase within 24 hours, reaching $59.26 billion. The volume for stablecoins, which are pegged to traditional currencies like the US dollar, also surged, hitting $100.92 billion, or 92.46% of the total crypto market’s 24-hour volume.
Many experts see the heightened market activity as a response to the favorable policy changes expected under a potential Trump administration, which may create a more supportive regulatory landscape for digital currencies. “The election outcome has re-energized the crypto market,” said crypto strategist Anne Wallace. Investors remain on edge, closely watching how the final election results may influence both the traditional and digital financial landscapes, with expectations that Trump’s economic policies could bolster the crypto market’s growth.
The combination of the US presidential election and rising investor interest in cryptocurrencies has brought Bitcoin and other digital assets to new heights. As exit polls reveal a possible Trump lead, investors are increasingly optimistic about a more favorable regulatory environment. With Bitcoin’s new record high and a rally across the broader crypto market, it is clear that the ongoing election has injected fresh momentum into digital assets. As election results continue to roll in, all eyes remain on the potential implications for both traditional and digital currencies.
