Originally published on: November 06, 2024
Bitcoin reached a historic milestone, soaring past $75,000 on November 6, surpassing its previous high of $73,800 set in March. This surge came as traders flocked to cryptocurrency amid early election results in the United States showing Donald Trump in the lead.
As the New York market opened, Bitcoin (BTC) displayed strength by rallying over 3% to reach an intra-day high of $70,577. The volatility in the crypto market was attributed to the uncertainty surrounding the US presidential elections.
Following the closure of the US trading day on November 5, Bitcoin surged to a new all-time high of $75,000.85 at 3:08 am UTC on November 6, according to TradingView data on Coinbase.
Early election data from the Associated Press indicated Trump leading with 198 electoral college votes, compared to Kamala Harris’ 112 as of 3:30 am UTC on November 6. To secure victory, a candidate needs at least 270 electoral votes.
Trump maintained his lead over Harris in early results, with several states on the US West Coast and vital battleground states yet to be decided.
At the time of writing, Bitcoin is trading at $74,339, showcasing a 7.2% increase in the last 24 hours.
Throughout the year, traders have been optimistic about Bitcoin’s price potential in the event of a Republican victory in the presidential elections. Both Republican and Democratic candidates have evolved their policy stances on cryptocurrency regulation over time.
Market analysts, including Tuur Demeester, have connected Bitcoin’s price rallies to news favoring Trump’s election prospects. Furthermore, the rise in Bitcoin’s price appears to mirror Trump’s increasing odds on decentralized prediction market Polymarket.
Despite hitting a record high, Bitcoin’s price is expected to remain volatile, reflecting uncertainties in market participants’ sentiments. Notably, there were substantial outflows from Spot Bitcoin ETFs on November 4, indicating a cautious approach among investors.
Protective measures observed in the Bitcoin options market also suggest a sense of prudent risk management among traders. Analysts like Pelion Capital founder Tony Stewart have highlighted this trend in discussions about Bitcoin’s market dynamics.
In conclusion, the surge in Bitcoin’s price to a new high of $75,000 amidst early election leads for Trump underscores the growing influence of external factors on cryptocurrency markets. Investors should conduct thorough research before making any trading decisions, as every investment move carries inherent risks.
