Bitcoin reached a record high as US elections results began to roll in. It broke $75,000 by 3:08 UTC, signalling a strong investor sentiment linked to Republican Donald Trump’s crypto friendly platform.
As traders closely followed the close race between Trump’s rival Vice President Kamala Harris, cryptocurrency was already up more than 8 percent on Election Night.
Trump’s agenda includes policies that support the digital assets industry. This is in stark contrast with the regulatory scrutiny under Biden.
Bitcoin rallys amid close election results
Bitcoin’s rise in price was fuelled by Trump’s initial lead, especially in states like Georgia and North Carolina.
Although the results are still uncertain, some traders believe that a Trump win could bring about favorable policies towards cryptocurrency.
Fredrick Collins is the CEO of VeloData.
Bitcoin has been a popular instrument for traders to trade the results of tonight’s election. The price is highly volatile and closely tied to the result. Trump’s chances of winning are reflected in any increase in the price.
As the election unfolded other digital currencies rallied. Ethereum rose by 6.5%, and Dogecoin saw an 18% increase, due largely to its association Elon Musk, who is a Trump supporter.
Cosmo Jiang commented that “Doge has benefited from its association with Musk because it is associated with Musk.”
Digital assets are thrust into the spotlight by crypto-backed campaign financing
Both candidates have expressed differing opinions on cryptocurrency during this election.
Trump took a crypto-friendly stance. He proposed policies that would make the US “the world’s cryptocurrency capital”, and pledged to create a Bitcoin national reserve, if he were elected.
Harris has taken a cautious approach in contrast to the aggressive enforcement of the present administration. He advocates for clearer regulation and a structure framework for the sector.
Experts in the crypto industry say that a Trump victory could help to give cryptocurrency a stronger foothold within US economic policy. His platform may bring tax benefits and promote innovation in decentralized financial services.
Harris supports a more clear regulatory environment and appeals to businesses seeking clarity on the legal aspects of digital assets.
Election uncertainty causes a spike in market volatility
The crypto markets have been volatile since the outcome of the elections is uncertain.
Bitcoin’s implied 30-day volatility index soared to the highest level since last July. Options markets are pricing an 8-percent swing either way following the elections, a dramatic increase compared with typical market movements.
Caroline Mauron is the co-founder and CEO of Orbit Markets. She explained how Orbit Markets provides crypto liquidity.
Options market signals were much higher after the election, with a move of approximately 8%. This is very high compared to a normal day. Investors’ unease over the outcome of an election is reflected in this volatility.
Bloomberg reported that investors withdrew $579.5 Million from Bitcoin ETFs on Monday. This was the biggest one-day withdrawal ever recorded. It is a sign of nervousness as we approach the elections.
Bitcoin, despite the temporary outflows in 2018, has increased by more than 70 percent since 2024. It is outperforming other traditional assets such as stocks and gold.
Bitcoin performance is boosted by ETFs, market changes and inflows
Bitcoin’s strong performance in 2018 is largely due to the large amount of money that major financial institutions like BlackRock and Fidelity have invested into recently launched Bitcoin ETFs.
According to Bloomberg, the net flows into Bitcoin ETFs total $23.6 billion. Investors are attracted by their convenience and perceived security.
After a court order, the SEC reluctantly approved Bitcoin ETFs for 2023. This was an important milestone in making digital assets accessible to investors.
Some institutional players have been cautious due to regulatory uncertainty, waiting for more clear guidance regarding compliance and reporting.
As the election approaches, crypto industry is focusing on policy changes.
Crypto executives have expressed their optimism about either candidate’s policy, compared to the Biden administration and its enforcement-heavy approach.
The SEC has taken regulatory action against crypto companies under President Biden. It launched multiple enforcement actions and accused them of misconduct.
Gary Gensler is the SEC chair and a vocal critic who has argued the digital asset industry suffers from fraud. He cites events such as the collapse of the FTX in 2022 to demonstrate its instability.
Trump’s policies, however, have provided hope for a regulatory change that could promote innovation and maintain investor protections.
Both crypto- and political markets have high stakes
Both the US crypto market and US policy will be affected by the final result of the election in 2024.
If Trump wins, a supportive environment could be created for digital assets. A Harris-led administration might focus on regulatory structures.
Investors and crypto enthusiasts alike are preparing for future developments as Bitcoin reaches record-highs.
The post Bitcoin surpasses $75,000 and Trump leads early elections may be updated as new developments unfold.
