Bitcoin reached a new high of $75,000 on Coinbase following the announcement of interim results from the US presidential election, where Donald Trump is leading.
How the US Election Influenced Bitcoin's Surge
Bitcoin's impressive rise began on November 5 as the US elections injected volatility into the market. As polling stations closed and more results trickled in, Bitcoin's price shot up over 3%, reaching an intra-day high of $70,577. By the early morning of November 6, Bitcoin surged past its previous all-time high, hitting $75,000.85 on Coinbase.
The 'Trump Trade' Effect on Cryptocurrencies
As the Republican candidate gained ground, markets responded positively, with Bitcoin leading amongst risk assets. Trump's support for digital assets resonates strongly with crypto enthusiasts. His promise to fire SEC Chairman Gary Gensler and establish a national Bitcoin reserve generated excitement.
Bitcoin’s Volatility: An Ongoing Theme
While Bitcoin's price has reached new heights, the crypto market remains volatile. On November 4, 2024, Bitcoin ETFs saw rare outflows, totaling $541.1 million, as major funds like Fidelity, ArkInvest, Bitwise, and Grayscale pulled out. Meanwhile, BlackRock's IBIT ETF saw inflows of $38.3 million. Although Bitcoin’s price surge is significant, experts warn it may not be sustained without adjustments in investor positioning.
Bitcoin's record has sparked a broader rally across the cryptocurrency market, including other digital assets like Ether and memecoins.
