Bitcoin has set a new record, reaching $75,000 on Coinbase. The surge was mainly driven by the influence of the US presidential election results, where Donald Trump temporarily took the lead.
US Elections and Bitcoin's Rise
On November 5, amid the US elections, Bitcoin began a rapid ascent. As election results gradually came in, Bitcoin's price increased by over 3%, reaching an intra-day high of $70,577. By early morning on November 6, Bitcoin surpassed its previous high, hitting $75,000.85. According to The New York Times, Donald Trump was leading with 247 electoral votes compared to Kamala Harris’s 210, impacting specific financial markets.
The Impact of the 'Trump Trade' on the Crypto Market
As the Republican candidate gained more traction, markets responded positively, with Bitcoin taking the lead among risk assets. Trump's support for the digital asset industry was met with investor optimism. His promise to dismiss SEC Chairman Gary Gensler and establish a national Bitcoin reserve created excitement. Gensler's policies, often seen as unfavorable to cryptocurrencies, made him a target for criticism.
Bitcoin's Volatility and Market Reaction
Despite achievements, the cryptocurrency market remains volatile. On November 4, 2024, significant outflows were observed from Bitcoin ETFs, totaling $541.1 million, as Fidelity, ArkInvest, Bitwise, and Grayscale withdrew their funds. However, BlackRock’s IBIT ETF saw inflows of $38.3 million. Bitcoin ETFs also experienced $116.9 million in outflows during this period. Despite the impressive rise, experts warn that its sustainability might require a shift in investor positions.
Bitcoin's record surge has sparked a wide reaction across the crypto market. Ether (ETH) also saw a rise of over 7%, with memecoins like Dogecoin and Shiba Inu increasing by 25% and 10%, respectively.
