Bitcoin surged past $75,000 on Tuesday night, setting a new all-time high, fueled by investor optimism tied to the ongoing U.S. election. The cryptocurrency gained more than 10% in just 24 hours, reflecting market enthusiasm for former President Donald Trump’s possible return to the White House and his pro-crypto stance.
Key Points:
- Market Reaction: Bitcoin began Election Day trading at $70,000 and peaked above $75,000 by 10 p.m. Tuesday.
- Trump’s Crypto-Friendly Campaign: Trump has embraced digital assets, accepting campaign donations in Bitcoin, Ether, and other major tokens.
- Broader Market Surge: Bitcoin’s rally boosted the entire crypto market, with Ethereum up 6% and Dogecoin surging 30%.
Bitcoin’s rally highlights heightened interest in crypto amid political uncertainty. Trump’s outspoken support for digital assets has created a “Trump trade” that appeals to investors. He has positioned himself as a “crypto candidate,” promising policies that could benefit the industry, including firing SEC Chair Gary Gensler if he wins.
Impact on Other Cryptocurrencies
The excitement around Bitcoin also spread to other cryptocurrencies. Ether, the second-largest digital currency by market capitalization, climbed to $2,560. Memecoins also saw gains, with Dogecoin and Shiba Inu rising 30% and 12%, respectively. Analysts believe this surge reflects broader bullish sentiment tied to Trump’s stance on crypto and the election’s potential impact on financial regulations.
Bitcoin ETFs and Halving Influence
The latest Bitcoin rally follows previous price highs earlier this year, linked to the approval of Bitcoin exchange-traded funds (ETFs). In January, the SEC approved several Bitcoin ETFs, prompting a wave of capital inflows. This regulatory shift made Bitcoin accessible to traditional investors, with inflows totaling over $20 billion this year. The next halving event, which reduces Bitcoin’s supply, also adds anticipation, often sparking a price increase.
With Trump gaining an early lead in the electoral college, crypto markets appear optimistic about a potential pro-crypto administration. As Election Day continues, the crypto market remains watchful, awaiting any shifts that may shape Bitcoin’s trajectory in the months ahead.
