 "Bitcoin jumps to record high as traders, investors bet on Trump's victory")
In a lively start to the Asian trading day, Bitcoin surged to a new record, reaching $75,060, as investors speculated on the possibility of Donald Trump returning to the White House. The world’s most prominent cryptocurrency jumped 7 per cent, outpacing its previous high from March, with many seeing a potential Trump administration as a boon for crypto-friendly regulations.
The early projections showed Trump leading in several states. Although the results are still unfolding, the market moved quickly, with investors anticipating that Trump’s victory might mean looser crypto regulations, spurring excitement among traders.
Experts believe the US Securities and Exchange Commission (SEC) could see a shift in attitude under Trump, which would benefit crypto innovation. Matthew Dibb from Astronaut Capital mentioned that while a Harris win might have tempered enthusiasm, markets are heavily weighing Trump’s potential influence.
Other digital assets enjoyed the rally too.
Ethereum jumped 6.5 per cent, and Dogecoin, often promoted by Trump supporter Elon Musk, rocketed 18 per cent. Cosmo Jiang from Pantera pointed out that Dogecoin’s association with Musk has likely helped boost its appeal during this election period.
The crypto industry itself has found its way into political discussions, with Bitcoin being viewed as a “Trump trade” due to Trump’s outspoken support. His promises to make the US the world’s crypto hub, create a Bitcoin reserve, and bring in pro-crypto regulators have endeared him to the digital-asset community. Harris, in contrast, supports more regulation, proposing a balanced framework rather than sweeping deregulation.
Volatility expected
With the election too close to call, traders are preparing for a volatile market. A spike in Bitcoin’s volatility gauge suggests major price swings could be on the way. Orbit Markets indicated that Bitcoin might see up to an 8 per cent move in either direction, a stark contrast to its usual daily fluctuations.
Impact Shorts
More ShortsSpot-Bitcoin ETF holders took a cautious stance, pulling a record $579.5 million from 12 funds the day before the election, as tracked by Bloomberg. Despite this, Bitcoin’s value has soared over 70 per cent this year, fuelled by ETF inflows from major players like BlackRock and Fidelity.
Hopeful Signs for Crypto Industry
Crypto executives anticipate that Trump or Harris will bring a friendlier tone to the sector than the Biden administration’s crackdown. Critics argue that the SEC, under Gary Gensler, has opted for enforcement over a clear legal framework, dampening the industry’s growth. With Trump or Harris, the sector may find itself in a more accommodating environment.