Bitcoin reached a new all-time high of $75,000 overnight, fueled by growing speculation that former President Donald Trump was gaining momentum in the U.S. election.
As election results trickled in, the cryptocurrency surged by 7%, reaching $74,392 after briefly hitting its previous record of $73,797.68 in March.
This price spike comes as Trump made significant strides in the Electoral College, winning key states, including North Carolina.
Coinbase and MicroStrategy also saw gains, rising by 3% and 4%, respectively, as investors anticipated heightened volatility in the markets until a clear winner emerges.
The potential outcome of the election has become a significant driver for cryptocurrency, with analysts predicting potential price movements based on the result.
Ryan Rasmussen, Head of Research at Bitwise Asset Management, stated that Bitcoin’s behavior in the days ahead would largely depend on the election outcome, highlighting the possibility of new highs if Trump wins, and a possible short-term sell-off if Vice President Kamala Harris emerges victorious.
Historically, Bitcoin has posted strong returns following the U.S. elections, particularly during Bitcoin halving years when the supply of the cryptocurrency decreased.
This year, investors are expecting a continued upward trend, especially if a favorable result for Trump sparks optimism in the market. Crypto analysts are watching the election results closely, bracing for potential short-term volatility but ultimately anticipating a rally in the longer term.
