Bitcoin reached a new all-time high of $75,000 on Coinbase, surpassing its previous record. The surge is tied to the U.S. presidential election results, with Donald Trump leading early returns.
US Election Sparks Bitcoin's Surge
Bitcoin's rise began on November 5 as the U.S. elections injected volatility into the market. By early morning on November 6, Bitcoin had surged past its previous all-time high, reaching $75,000.85, according to TradingView. At this time, early election results showed Trump leading with 247 electoral votes versus Kamala Harris's 210, fueling the 'Trump trade' in financial markets.
The 'Trump Trade' and Its Impact on Crypto
As Trump gained ground in the election, markets responded positively, and Bitcoin led risk assets. Trump's support for the digital asset industry and promise to fire SEC Chairman Gary Gensler resonated with crypto enthusiasts. Gensler's policies were seen as unfavorable to cryptocurrencies, making Trump's proposals particularly exciting for the sector.
Bitcoin’s Volatility: A Continuing Theme
Despite Bitcoin's new heights, the cryptocurrency market remains volatile. On November 4, Bitcoin ETFs saw outflows of $541.1 million, though BlackRock’s IBIT ETF saw inflows of $38.3 million. Bitcoin spot ETFs also saw outflows of $116.9 million. Experts caution that without changes in investor positioning, the rally may not sustain.
Bitcoin's all-time high has sparked a broader rally across the cryptocurrency market, boosting ether and other digital assets. While sentiment is positive, investor caution remains necessary due to potential volatility.
