Bitcoin, the world’s flagship cryptocurrency, hit a new all-time high of $75,000 as traders bet on the possibility of former President Donald Trump gaining an edge in the U.S. election. The cryptocurrency’s price has been fluctuating significantly, rising sharply overnight by 7% to $74,392 at last count, based on Coin Metrics data. The previous record of $73,797, set on March 14, had stood for months as Bitcoin traded within a narrower range, often staying below $70,000.
This latest Bitcoin rally coincides with election results showing Trump with an early lead in the Electoral College, with 230 votes so far according to NBC News projections. Trump’s tally includes a win in North Carolina, a critical battleground state. Financial markets are responding swiftly, with crypto exchange operator Coinbase seeing a 3% boost in after-hours trading, and MicroStrategy, a well-known Bitcoin bull, gaining 4%.
Bitcoin Price Reaction Hinges on Election Results
The U.S. presidential election is having a significant impact on Bitcoin and the broader crypto market, according to Ryan Rasmussen, head of research at Bitwise Asset Management. “Expect Bitcoin to remain choppy in the days ahead until a clear winner emerges,” Rasmussen said. He noted that if Trump secures a win, it could propel Bitcoin to even greater highs. Conversely, a victory for Vice President Kamala Harris might prompt an initial sell-off, with the possibility of prices stabilizing and recovering over the coming months.
Historical trends reveal that it often rallies after U.S. elections. Following the 2012, 2016, and 2020 elections, It posted 90-day returns of around 87%, 44%, and 145% respectively. This pattern is partly attributed to the fact that presidential election years coincide with Bitcoin halving events, which limit the cryptocurrency’s supply and have traditionally boosted its value. Additionally, major shifts in Federal Reserve policy around election periods—such as anticipated interest rate cuts this year—tend to stimulate demand for Bitcoin as an alternative asset.
Crypto Traders Brace for Volatile Markets Amid Election Uncertainty
Julio Moreno, an analyst at CryptoQuant, shared that it’s price, recently below $70,000, aligns closely with its fair market value as the election looms. According to Moreno, a favorable election outcome for crypto investors could spark another rally, potentially pushing Bitcoin to solidify its record-breaking price levels. “For now, traders are mostly holding back, waiting for clear signals,” he said.
James Davies, CEO of Crypto Valley Exchange, echoed this sentiment, stating that key market players remain poised to react but are uncertain of which direction the election will take Bitcoin. “We’re expecting substantial short-term volatility regardless of the outcome,” he noted, highlighting that traders and market makers are prepared to respond swiftly based on election results.
Trump vs. Harris: Election Stakes High for Bitcoin and Crypto Policy
Many analysts see this presidential election as one of the most critical in crypto history. Trump has positioned himself as a pro-crypto candidate, advocating for the industry more openly than Harris. A Trump win could lead to a crypto-friendly regulatory environment, while a Harris victory is perceived by some as a potential setback for the industry. The debate has intensified throughout the campaign, with both sides speculating on how each candidate’s policy stance could influence the future of digital assets.
There is also heightened concern among voters about the ballooning government deficit, which surged 8% to $1.8 trillion in the 2024 fiscal year. This adds to fears about rising inflation and a depreciating dollar—factors that have made Bitcoin increasingly attractive as a “digital gold” hedge. Investors see it as a safeguard against monetary policy decisions that could weaken traditional currency value and spur inflation.
Election’s Broader Impact on Bitcoin: Long-Term Outlook Positive
The broader financial landscape continues to show it’s resilience as an asset class, largely due to its decentralized nature and limited supply. Over the years, Bitcoin has gained acceptance as a hedge against economic instability, with institutional interest growing alongside traditional retail demand. The election outcome may influence Bitcoin’s short-term movements, but experts like Rasmussen believe that its long-term trajectory remains bullish, regardless of who wins the presidency.
Bitwise’s Rasmussen added that while a Trump victory might see Bitcoin rally faster, he expects the cryptocurrency to reach new highs eventually under either administration. “With its fundamentals, Bitcoin is positioned to grow as more investors recognize its potential as a store of value,” he explained.
Market Watching Federal Reserve’s Next Moves
As the U.S. election unfolds, the Federal Reserve’s policies will also be closely watched. Many in the crypto space believe further interest rate cuts could add to Bitcoin’s momentum by increasing the attractiveness of non-dollar assets. A dovish Fed stance typically benefits Bitcoin, as lower interest rates often devalue the dollar, pushing investors toward alternatives like crypto.
For now, investors are taking a wait-and-see approach, keeping their assets stable but ready for any price swings. Many leading traders and institutions have their strategies in place but remain flexible in response to election results, indicating that Bitcoin could experience massive volatility in the immediate future.
Looking Ahead: Bitcoin’s Role as a Safe-Haven Asset
As traditional concerns about government spending and inflation persist, It’s role as a safe-haven asset is increasingly in focus. The cryptocurrency’s appeal as an inflation-resistant asset is becoming more pronounced, particularly in an election year where economic policies are under intense scrutiny. With both candidates promising tax adjustments and economic reforms, Bitcoin’s value as a hedge remains top of mind for many investors.
In the days following the election, It’s movement will likely remain volatile. However, historical patterns suggest that the cryptocurrency is well-positioned to continue its upward trajectory, bolstered by a mix of institutional interest, public awareness, and its unique financial properties. As the dust settles, Bitcoin’s record price could pave the way for new highs, offering traders and investors opportunities in a post-election economy that appears increasingly favorable for alternative assets.