Bitcoin has once again soared to unprecedented heights amid market volatility related to the U.S. presidential elections.
US Elections Drive Bitcoin's Surge
Bitcoin's impressive rise began on November 5, 2024, as polling stations closed in the U.S., leading to a sharp increase exceeding 3%, with an intra-day high of $70,577. By the morning of November 6, Bitcoin surged past its previous all-time high to $75,000.85 on Coinbase. This was partly due to early election results showing Donald Trump with 247 electoral votes compared to Kamala Harris's 210.
The 'Trump Trade' and Its Impact on Crypto
As the election intensified, Bitcoin led the charge among risk assets. Over the past 24 hours, it climbed more than 9%, reflecting positive expectations surrounding Trump's potential reelection. Trump has expressed his intent to support the digital asset industry, resonating with crypto enthusiasts.
Bitcoin’s Volatility: A Continuing Theme
Despite hitting new highs, the cryptocurrency market remains volatile. On November 4, 2024, Bitcoin ETFs saw outflows of $541.1 million, although BlackRock's IBIT ETF reported inflows of $38.3 million. Experts caution that sustainable price stability may require adjustments in investor positioning.
The U.S. elections have propelled Bitcoin to new heights, sparking a broader rally across the crypto market. Yet, volatility remains a key factor requiring attention in investor strategies.
