As a result of the US elections, Bitcoin reached a new record high value, becoming a key topic within the cryptocurrency community.
US Election Sparks Bitcoin's Surge
Bitcoin's impressive rise began on November 5 when the U.S. elections injected volatility into the market. As results poured in, Bitcoin's price shot up over 3%, reaching an intra-day high of $70,577. By early morning on November 6, Bitcoin surged past its previous all-time high, hitting $75,000.85 on Coinbase. These results boosted confidence in Donald Trump's potential victory among traders.
The 'Trump Trade' and Its Impact on Crypto
As the Republican candidate gained ground in the election, markets responded positively, with Bitcoin leading the charge among risk assets. Donald Trump, vocal about his support for the digital asset industry, promised to fire SEC Chairman Gary Gensler and establish a national Bitcoin reserve, which excited the crypto community. These initiatives have fueled expectations that the digital currency sector could thrive under his leadership.
Bitcoin’s Volatility: A Continuing Theme
While Bitcoin's price has reached new heights, the cryptocurrency market remains volatile. On November 4, 2024, Bitcoin ETFs saw rare outflows totaling $541.1 million. However, BlackRock's IBIT ETF saw inflows of $38.3 million. Bitcoin spot ETFs also saw $116.9 million in outflows on Nov. 5. Experts warn that the sustained growth may not continue without adjustments in investor positioning.
Bitcoin's new record high has influenced the entire cryptocurrency market, sparking a rally across a wider range of digital assets.
