Bitcoin set a new record amid the US presidential elections, showcasing significant growth amid political uncertainty.
US Election and Bitcoin's Rise
On November 5, the day of the US elections, Bitcoin began to rise sharply, reaching an intra-day high of $70,577. By the morning of November 6, the cryptocurrency's price reached a new record of $75,000.85 on Coinbase. At that time, early election results showed Donald Trump leading with 247 electoral votes compared to Kamala Harris's 210, boosting the 'Trump trade' in financial markets.
The 'Trump Trade' and Its Impact on Crypto
Donald Trump's support for the digital asset industry has boosted Bitcoin. In the past 24 hours, the cryptocurrency's price has increased by more than 9%. His promises to oust SEC Chairman Gary Gensler and establish a national Bitcoin reserve have inspired crypto enthusiasts.
Bitcoin’s Continuing Volatility
Despite the growth achieved, the cryptocurrency market remains volatile. On November 4, Bitcoin ETFs experienced a rare outflow totaling $541.1 million. However, BlackRock's IBIT ETF recorded inflows of $38.3 million. Experts warn that without adjustments in investor positioning, the current growth may not be sustained.
Bitcoin's peak has sparked a wide-ranging rally in the cryptocurrency market, but experts advise caution given the potential volatility risks.
