Bitcoin prices surged over 10 percent on Wednesday, reaching the $75,000 mark for the first time and achieving new record highs, fueled by the excitement surrounding Donald Trump’s victory in the 2024 US election. While these are just early indicators, the Republican Party’s win is perceived as a significant boost for the cryptocurrency sector.
Crypto investors have been eagerly anticipating the presidential election for months, believing that a win for former President Donald Trump would positively impact Bitcoin and other digital assets. At the Bitcoin 2024 conference earlier this year, Trump positioned himself as a supporter of cryptocurrency, leading to optimism that a Republican victory would benefit digital currencies.
Since its launch in 2009, Bitcoin has experienced three election cycles, each followed by a rally to new heights, with prices never reverting to pre-election levels. Although these gains have lessened over time, Bitcoin’s consistent upward trend highlights its resilience and lasting appeal as a long-term investment, according to Sumit Gupta, co-founder of CoinDCX.
“A Trump victory could bolster this perspective, as potential regulatory appointments may favor crypto-friendly policies. A decrease in regulatory uncertainty could further promote institutional participation, likely increasing Bitcoin’s value and generating more interest in altcoins,” he stated.
After initially reaching a high of $75,011.06, Bitcoin experienced a slight pullback but remained around the $74,700 mark, reflecting a 9.25 percent increase over the last 24 hours, according to data from CoinMarketCap. The total market capitalization of Bitcoin approached $1.48 trillion.
At this juncture, all attention turns to the crypto regulations and innovations the next president may introduce, stated Edul Patel, CEO of Mudrex. “These developments could further influence institutional adoption, global market stability, and encourage other nations to establish clearer regulations for cryptocurrency,” he added.
Bitcoin has achieved a new all-time high, surpassing $75,000. This surge is driven by substantial inflows into exchange-traded funds and increased speculation surrounding the US presidential election results, according to Balaji Srihari, Business Head at CoinSwitch. In addition to Bitcoin, other popular tokens like Dogecoin, Solana, and Shiba Inu have also seen notable increases in trading volume, he noted.
“As the results start coming in today, we anticipate significant market volatility. Early signs point to a possible Trump victory, and as a strong proponent of cryptocurrency, his win could indicate a bright future for the industry. However, considering the increasing influence and adoption of crypto, its momentum is undeniable, regardless of the election outcome,” he stated.
Among other leading cryptocurrencies, Dogecoin surged nearly 30 percent, while Uniswap rose by 23 percent. Solana, Cardano, and Shiba Inu each saw increases of 10 to 15 percent. Notably, the total market capitalization of all crypto assets jumped nearly 11 percent, reaching the $2.5 trillion mark, with trading volumes soaring 77 percent to $138.48 billion in the last 24 hours.
It’s worth mentioning that memecoins like Dogecoin and Shiba Inu have experienced substantial gains, largely due to their association with Elon Musk, the world’s richest man, who has openly supported Donald Trump and campaigned for the Republican candidate in the 2024 US elections.
Crypto has played a significant role in Trump’s campaign, and his future perspective on digital assets is viewed as friendly and adaptable to the industry, according to Nischal Shetty, Co-founder of WazirX. “However, investors should exercise caution regarding the volatility of Bitcoin prices at this time, as changes in sentiment surrounding the election and the announcement of results could greatly impact prices,” he added.
Market experts anticipated Bitcoin’s emergence as a safe-haven asset following the US elections. Sugandha Sachdeva, Founder of SS WealthStreet, noted that as election-related risks begin to diminish, funds may start shifting toward Bitcoin and debt markets in the short term.
