As the results of the US presidential election are gradually revealed, market sentiment is high, and Bitcoin has soared to a new all-time high in overnight trading. Investors betting on the former president Trump taking the lead in the election have driven the price of this cryptocurrency to rise. Under the keen attention of investors, whether Bitcoin can maintain this upward trend has become a focus.
Table of Contents
ToggleTrump exceeds the threshold of 270 electoral votes to win, and will address the crowd
Before the deadline, Trump has already won 277 electoral votes. To be elected as the US president, a candidate only needs to win more than 270 electoral votes in the states. Trump's supporters have already gathered at the campaign headquarters, waiting for Trump to deliver his victory speech.
On the on-chain prediction platform Polymarket, the results are also pointing to a Trump victory:
Bitcoin breaks through 75 K, setting a new record
The price of Bitcoin has reached a new all-time high of $75,000, rising more than 8% in 24 hours, and closed at $74,500 before the deadline. Previously, the highest record for Bitcoin was $73,797.68 set on March 14 this year, and it has been hovering below $70,000 since then.
Trump leads the election, and Bitcoin surges
The overnight surge in Bitcoin coincides with Trump's early lead in the electoral vote. NBC News predicts that Trump will win in North Carolina and Georgia, while the competition in other key swing states remains deadlocked. In addition, the Republicans are also likely to regain control of the Senate majority, further stimulating the cryptocurrency market.
Cryptocurrency-related company stocks benefit from the positive news
Along with the rise in Bitcoin, the stock price of the cryptocurrency exchange Coinbase rose 3% in after-hours trading, while the business intelligence company MicroStrategy rose 4%. Both companies have large investments in the crypto market and are particularly sensitive to Bitcoin price fluctuations, and investors expect their stock prices to continue to fluctuate before the election results are finalized.
Bitcoin has performed well after elections in the past, and the market expects policy trends to be favorable
Historical data shows that Bitcoin's performance is usually better in the 90 days after an election. In the election years of 2012, 2016, and 2020, Bitcoin's returns were 87%, 44%, and 145% respectively. This trend is to some extent due to the fact that election years coincide with Bitcoin's halving, which reduces the supply and drives up the price. In addition, changes in Federal Reserve policy after the election also often affect Bitcoin prices. The market expects the Federal Reserve to further cut interest rates after this election, which enhances the appeal of Bitcoin as a hedging tool.
Trump Gains Crypto Industry's Favor, Kamala Harris' Stance Raises Concerns
This US presidential election is being called the most important election for the crypto industry, especially as many crypto currency supporters believe that Trump is the more favorable candidate for the industry. Trump has self-proclaimed to be "pro-crypto" and has expressed support for the industry multiple times during the election campaign, in contrast with Kamala Harris' attitude. Conversely, the risk of a Kamala Harris victory makes crypto businesses uneasy, as she may implement stricter policies towards the industry.
Economic Deficit and Tax Policy Concerns, Bitcoin Becomes a Hedging Tool
Another focus of voters is the ever-expanding US government deficit. In the 2024 fiscal year, the US government deficit rose by 8%, reaching $1.8 trillion, which has made some voters concerned about inflation risks and the devaluation of the US dollar. Just like gold, Bitcoin is seen as an effective tool to hedge against currency devaluation and inflation, and as the uncertainty around the election and fiscal policies increases, investors' demand for Bitcoin has correspondingly increased.
