Bitcoin soared past $75,000 as traders closely monitored the U.S. presidential election, a contest between Donald Trump, an advocate for digital assets, and Kamala Harris, who has previously taken a cautious stance on the crypto industry.
As election results poured in, Bitcoin jumped by over 8% to a record $75,000 by 10:08 p.m. in New York, breaking its previous March high. This spike follows the U.S. launch of Bitcoin exchange-traded funds (ETFs), signaling robust interest in digital assets.
The cryptocurrency gained momentum as early results favored Trump, who had strong leads in swing states like Georgia and North Carolina. According to Fredrick Collins, CEO of VeloData, Bitcoin’s value rose as Trump’s chances increased: “Bitcoin is highly liquid and connected to the election. The price hikes reflect Trump’s strengthened position.”
Other Cryptocurrencies Rally
The election also fueled gains in other cryptocurrencies. Ethereum rose 6.5%, and Dogecoin — boosted by Elon Musk, a prominent Trump supporter — surged by 18%. “Doge has particularly benefitted due to its Musk association,” noted Cosmo Jiang from Pantera, a crypto investment firm.
Trump has cultivated strong support within the crypto community by pledging to transform the U.S. into a global crypto hub. His promises include establishing a Bitcoin reserve and appointing pro-crypto regulators. Harris, by contrast, has advocated for regulatory structure, aiming to balance growth and oversight within the industry.
Market Braces For High Volatility
The election’s tight race has led to heightened market volatility. Bitcoin’s implied volatility index hit its highest level since July’s political upheaval. Caroline Mauron, co-founder of Orbit Markets, reported an 8% expected price movement following the vote—far higher than Bitcoin’s usual 2% fluctuation.
Spot-Bitcoin ETF investors prepared for this by cashing out a record $579.5 million on Monday, anticipating potential election-related turbulence.
Bitcoin’s price has surged over 70% in 2024, outpacing traditional assets like global stocks and gold. Prior to election-driven interest, ETF inflows, especially from BlackRock and Fidelity, boosted Bitcoin prices significantly. Together, these firms contributed to a net inflow of $23.6 billion, following the SEC’s approval of ETFs after a court reversal in 2023.
The crypto industry remains optimistic about future support, contrasting sharply with President Joe Biden’s administration, which imposed strict regulations. Under Biden, the SEC led by Gary Gensler implemented rigorous oversight, labeling crypto as a sector vulnerable to fraud and enforcing restrictions after several notable scandals, including the collapse of FTX.
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