- As the market digests Republican nominee Donald Trump’s early lead in the 2024 presidential campaign, the biggest cryptocurrency by market capitalization has increased by about 70% year-to-date and hit a new all-time high today.
With the market processing Republican nominee Donald Trump’s early lead in the 2024 presidential election, the price of bitcoin has surpassed $73,737.94 to reach a new all-time high.
According to The Block’s pricing page, Bitcoin has increased 9.5% in the last day to trade at over $74,700.
After reaching the $73,000 mark on March 13 and surpassing its all-time high of $69,000 from November 2021 on March 5, Bitcoin has maintained its upward trajectory. Bitcoin has spent the better part of seven months rangebound between $50,000 and $70,000 since reaching that peak.
According to The Block’s data, the price of Ether increased by 6.72% to trade at $2,562, and Solana surged 13.29% to $179. These price increases were observed across various cryptocurrencies, giving in a 6.77% increase in the global crypto market.
The U.S. presidential election coincides with the new all-time high. In his campaign for a second term, former President Donald Trump has adopted a far more pro-crypto stance.
When the Republican candidate’s campaign began to accept cryptocurrencies as a form of donation in May, his position on the subject shifted. Since then, he has spoken with leaders from bitcoin mining firms and stated his goal of making the United States “the crypto capital” of the world. Kamala Harris, the Democratic nominee and incumbent vice president, has been far more subdued on the subject.
Trump has received 198 electoral college votes and 52.5% of the vote thus far, according to AP News. As of right now, Harris has 99 electoral votes.
The Republican candidate’s chances of winning the election increased to 84.3% in the last day on the $3 billion wager on the outcome placed on the decentralized prediction market platform Polymarket.
According to OKX’s chief commercial officer, Lennix Lai, there will probably be greater short-term volatility as long as macroeconomic policy uncertainty persists.
As evidenced by today’s all-time high, the market had also priced in a Trump victory, which has produced short-term euphoria. However, retrenchments are sure to occur en route to even higher all-time highs. Trump gave the market very positive signals while he was running for office about supporting the cryptocurrency sector and enhancing the US’s standing as a major, regulated worldwide center for the sector. This will have wide-ranging effects on a worldwide scale if it is put into practice.
October and November have historically produced some of the year’s best returns, and today’s innovation is in line with what the industry anticipates. With the contentious U.S. election, the Fed’s rate decision on November 6, and the U.S. jobs report on November 8, the next few days will be exciting.
Although prediction markets are overwhelmingly anticipating a Trump victory, which may be driving the price spike, analysts anticipate significant volatility as important battleground states start counting votes. After the results are formally announced, Bitcoin might reach fresh all-time highs, capping an extremely unpredictable event for the cryptocurrency sector.
ETF momentum
Due to significant inflows into the new spot bitcoin ETFs in the US, the largest cryptocurrency by market capitalization has increased by almost 70% so far this year. As of October 28, the ETFs have produced a daily cumulative volume of nearly $450 billion since trading started on January 11. As of October, inflows into bitcoin ETFs had totaled $22.5 billion for the year, with over $3.6 billion coming in October alone.
We think that U.S. politics have a big impact on bitcoin pricing and flows right now, and the recent spike in inflows is probably related to the Republicans’ poll wins.
Another factor contributing to this year’s price increase was the April 20 Bitcoin halving event. The quantity of new bitcoin coming into circulation through the miners’ reward subsidy decreased from 6.25 BTC to 3.125 BTC every block as a result of the halving. With every block that is mined, the miners continue to receive extra transaction fees.
Bitcoin halvings, which are scheduled to happen automatically every 210,000 blocks, or approximately every four years, have traditionally been linked to notable changes in the price of the cryptocurrency. Although there isn’t a clear cause-and-effect link, these occurrences frequently come before significant bitcoin market bull runs.
In addition to being a significant turning point for the cryptocurrency, the new all-time high for bitcoin highlights the decentralized digital assets’ ongoing durability and expanding acceptability by the general public. The rising demand for this asset is reflected in it.
Analysts at research and brokerage firm Bernstein were more certain earlier this year that the price of bitcoin should approach $150,000 this cycle. Most recently, the same researchers urged skeptics to reevaluate the limited supply of cryptocurrencies at a period of record U.S. debt levels, claiming their current $200,000 price prediction for the end of 2025 is cautious.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
