Bitcoin has set a new record high of $75,000 amidst the volatility stirred by the US elections. The surge is linked to early election results showing Donald Trump leading the presidential race.
US Election Sparks Bitcoin's Surge
Bitcoin's price hikes began on November 5, as the US elections injected volatility into the market. With polling stations closing and more results emerging, Bitcoin's price rose over 3% to reach an intra-day high of $70,577. By the morning of November 6, the price on Coinbase hit $75,000.
The 'Trump Trade' and Its Impact on Crypto
As the Republican candidate gained ground, markets responded positively, with Bitcoin leading the rally among risk assets. Anticipation of favorable policies for cryptocurrencies under a potential Trump presidency spurred this movement. His plans to replace SEC Chairman Gary Gensler and establish a national Bitcoin reserve have excited crypto enthusiasts.
Bitcoin’s Volatility: A Continuing Theme
Despite the price hike, the cryptocurrency market remains volatile. On November 4, 2024, Bitcoin ETFs experienced rare outflows of $541.1 million involving major funds like Fidelity and ArkInvest. However, BlackRock's IBIT ETF saw inflows of $38.3 million. Bitcoin spot ETFs also noted $116.9 million in outflows on November 5. Experts advise caution, as investor position adjustments are crucial for sustained growth.
Bitcoin's peak has sparked a broader cryptocurrency rally, with significant increases in Ether and meme coins like Dogecoin and Shiba Inu. However, given the volatility, the future remains uncertain.
