Dubai: Bitcoin prices have shot past $74,000 as the crypto markets turned in some heavy action as a clearer picture started to emerge of who will be the next US President.
As voting patterns showed a Trump win as the strongest possibility, Bitcoin cleared its previous high of just over $73,000 struck during March last. The cryptocurrency was trading at slightly over $71,000 just over two hours ago.
"It has been a huge day for the crypto scene, with Bitcoin hitting $75k and with some truly grown-up sized moves playing out in the smaller coins," said Chris Weston, Head of Research at Pepperstone.
Bitcoin as hedge
"As the market sees Trump’s prospects as a done deal, the idea of having the president of the world’s biggest economy championing your corner is obviously a nice position to be in," said Weston. "The hope is he makes good on his proposal to turn the US into the global home of crypto output.
"Backing this, we see the prospect of the Republicans picking up both the House and Senate increasing – not yet a done deal, but the odds have increased, and this brings up concerns of deficit spending and ballooning debts – a dynamic to which some see as reason to buy Bitcoin as a hedge against debasement."
As the market sees Trump’s prospects as a done deal, the idea of having the president of the world’s biggest economy championing your corner is obviously a nice position to be in.
There will be some hesitation to chase the Bitcoin price at current levels, as it always feels hard to buy any market at all-time highs, and while Trump and certainly a red sweep are yet to be called, pullbacks should be well supported as you cant really get any more bullish that a market at all-time highs, and it is here for a reason – the market likes the story.
The latest leap for Bitcoin continues the pattern of sharp rises close to and immediately after the US Presidential election. This time, crypto followers had the extra spice of Elon Musk, the Tesla chief, being closely associated with the Trump campaign. (As well as being one of the key contributors to Trump’s run for the US presidency. In fact, there were quite a few tech titans who were on the Trump side.)
“We’ve said for months that Trump’s stance on cryptocurrency, combined with the uncertainty surrounding the election, would push Bitcoin to new heights," says Nigel Green, CEO of deVere Group, in a statement. “This rally isn’t just about the election; it’s about the fundamental shifts happening in the digital financial system, of which Bitcoin is the leader.
"People are waking up to the fact that traditional systems are changing.”
So, Bitcoin continues the tradition of gaining quite a bit each time a US Presidential election happens. The currency registered an increase of more than 450% in the 12 months following the 2020 election. By end 2021, it had hit a then all-time high of nearly $69,000.
2024 US election continues the tradition
“Trump’s open support of cryptocurrency has triggered this (latest) surge," said Green. "As many investors anticipate that a Trump victory would clear the path for mainstream adoption and regulation that is both favorable and necessary for Bitcoin’s continued growth.”
