Bitcoin Surges Above $75,000 on Election Night as Trump Gains Momentum
Bitcoin reached an all-time high of $75,000 early on Wednesday morning (Asia time), spurred by growing optimism among crypto traders as election results showed a strong performance by former President Donald Trump. The cryptocurrency saw a 7.5% increase in its price over 24 hours, with a sharp rise in the final two hours of trading coinciding with Trump’s improving odds in the U.S. presidential race.
According to betting platform Polymarket, Trump now has an 85% chance of winning the presidency, a sentiment reflected in Bitcoin’s price action. Many cryptocurrency investors believe that a Trump victory would favor the crypto market more than his Democratic rival, Kamala Harris, who is often viewed as less crypto-friendly due to her stance on regulatory oversight.
Bearish Bets Liquidated as Trump Gathers Momentum
The Bitcoin price spike was further fueled by the liquidation of $94 million worth of bearish bets and hedged positions against the cryptocurrency, according to data from Coinglass. As traders adjusted their positions in anticipation of a Trump win, the market saw significant short-covering, which contributed to the rapid price increase.
Moreover, Bitcoin’s higher trading prices on Coinbase compared to other exchanges signal growing demand from U.S. investors, likely in response to Trump’s rising electoral prospects.
Trump Leads Early Electoral Count
Early election results reported by the Associated Press showed Trump securing key states including Kentucky, Florida, and West Virginia, putting him ahead in the electoral count at 198 to 99 over Vice President Harris. This early success in battleground states helped to fuel confidence in Trump’s potential victory, adding to the momentum behind Bitcoin’s price surge.
Market Sentiment on Cryptocurrency and the Election
While Bitcoin’s rally is being closely watched by market participants, many believe that a Trump presidency would bring a more favorable environment for cryptocurrencies, particularly in terms of taxation and regulation. Trump’s policies during his first term were perceived as more hands-off when it came to the crypto industry, leading some investors to view him as a more predictable ally for digital assets.
In contrast, Harris and the broader Democratic platform have signaled interest in more stringent regulations on digital currencies, a stance that could potentially dampen growth in the sector.
As the U.S. election continues to unfold, Bitcoin’s price action and broader market sentiment will likely remain closely tied to political developments, with the crypto market closely watching the outcome for any signs of potential regulatory shifts.