Bitcoin Hits New All-Time High of Over $75,000 As Trump Wins U.S. Election

Key Takeaways:

• Bitcoin reached a new all-time high of $75,000 on November 6, surpassing its previous record.
• The rally was spurred by early U.S. election results showing Donald Trump leading the presidential race.
• Institutional investors continue to pile into Bitcoin, and the cryptocurrency's appeal as a hedge against inflation is growing.

Bitcoin hit a new all-time high of over $75,000 on November 6 as traders piled into crypto amid early U.S. election results showing Donald Trump winning.

Bitcoin Reaches New All-Time High as U.S. Election Results Drive Market Sentiment

At the start of the trading in New York, Bitcoin initially showed strength, rallying over 3% to reach an intraday high of $70,577. 

This jump came as the U.S. presidential election triggered market volatility within the crypto sector.

Several hours after the U.S. trading day closed on November 5, Bitcoin reached a new all-time high, surpassing $75,000.85 at 3:08 a.m. UTC.

This price spike represents a 9% daily increase and mirrors a crypto analyst’s prediction that Bitcoin's price would swing at least 10% following the election.

Associated Press shows that Trump leads with 267 out of 270 electoral college votes needed to win, surpassing Kamala Harris, who holds 224 votes, at press time. 

Trump’s emergence as the election winner would make him the 47th president of the U.S. after serving as the 45th president between 2016 and 2020.

At press time, Bitcoin is trading at $73,371, up 6.3% over the last 24 hours. 

Institutional Influence and Socio-Political Factors To Push Bitcoin Further?

Prior to Trump's victory, other factors had contributed to Bitcoin’s previous rally in ‘Uptober'.

For example, investment firm Metaplanet has emerged as a major Bitcoin buyer this cycle, bringing its total holdings to 1,018.17 BTC, valued at roughly $68.8 million following its latest acquisition.

Investor sentiment also leans toward optimism, as reflected in the Fear and Greed Index, which has moved into the “Extreme Greed” zone.

Both Trump and Harris evolved their stances on cryptocurrency regulation, but Trump positioned himself more directly as a pro-crypto candidate, influencing market optimism.

Election years align with Bitcoin halving cycles, a phenomenon that restricts Bitcoin’s supply, contributing to price rises. Bitcoin's post-election returns have also generally aligned with major Federal Reserve policy shifts. 

Swap traders are betting that, regardless of the election results, the Fed is set to cut interest rates this week. Markets are currently pricing in a 92% chance of a 25 basis point cut by the US central bank on Thursday. pic.twitter.com/V74tlXIOcU

— Wall St Engine (@wallstengine) November 5, 2024

This year, the market anticipates further interest rate reductions, which are expected to favor crypto. Beyond regulation, broader economic concerns influence Bitcoin’s appeal as a hedge asset. 

Investors are increasingly viewing Bitcoin, like gold, as a hedge against the potential devaluation of the dollar.