Bitcoin hit a new all-time high, surpassing $75,000 on Coinbase, amid early US election results and increasing support for crypto assets.
US Election Impact on Bitcoin's Rise
Bitcoin's rise began on November 5 when the US elections injected volatility into the market. As polling stations closed and results emerged, Bitcoin's price surged 3%, reaching an intra-day high of $70,577. By the morning of November 6, Bitcoin reached a new all-time high of $75,000.85 on Coinbase. These developments were accompanied by news of Donald Trump's lead with 247 electoral votes compared to Kamala Harris's 210, boosting the 'Trump trade' in financial markets.
The 'Trump Trade' and Crypto Influence
As the Republican candidate gained ground in the election, the market responded positively, with Bitcoin leading among risk assets. Bitcoin has climbed more than 9%, reflecting investor optimism regarding Trump's pro-crypto stance. Trump has been vocal in his support for the digital asset industry, promising to fire SEC Chairman Gary Gensler and establish a national Bitcoin reserve, stirring excitement among crypto enthusiasts who believe the sector could thrive under his leadership.
Bitcoin's Volatility: A Continuing Theme
Despite reaching new heights, the cryptocurrency market remains volatile. On November 4, 2024, Bitcoin ETFs saw rare outflows totaling $541.1 million, as major funds like Fidelity and Grayscale pulled out. Meanwhile, BlackRock's ETF attracted $38.3 million. Additionally, Bitcoin spot ETFs saw $116.9 million in outflows on November 5. Experts warn that without adjustments in investor positioning, Bitcoin's current price rally may not be sustained.
Bitcoin's new all-time high has sparked a broader rally across the crypto market, impacting assets like Ethereum, Dogecoin, and Shiba Inu. US elections and potential policy changes play a significant role.
