The price of Bitcoin surged to an all-time high of $75,255 Tuesday night as early results from the US presidential election began to roll in, with former President Donald Trump taking an initial lead in the Electoral College.
The Associated Press reported a 7.7% increase in Bitcoin’s value, while share prices and bond yields also saw significant gains in anticipation of potential market changes tied to the election outcome.
Trump is perceived as more supportive of the financial markets, having taken a largely hands-off regulatory approach during his previous term.
Despite previously criticising cryptocurrencies, Trump has since repositioned himself as a pro-crypto advocate, even launching his own crypto business, World Liberty Financial.
Vice President Kamala Harris, however, has yet to take a formal stance on cryptocurrency. The Biden administration has been viewed by many in the crypto industry as restrictive, according to a recent report by consumer financial services company Bankrate.
Some investors believe that if Harris were to win, it might introduce a more cautious regulatory stance on cryptocurrencies, potentially leading to a decrease in Bitcoin’s value.
The impact of the election has not been limited to Bitcoin alone. Ether, the native cryptocurrency of the Ethereum blockchain, also rose by 7.2 percent, reaching $2,576. Market analysts expect cryptocurrency trading to remain volatile until the election result is confirmed.
Crypto enthusiasts and traders worldwide are watching closely, with many speculating that another Trump term could pave the way for relaxed regulatory oversight in the industry.
For now, the market is in a state of flux, with Bitcoin trading expected to fluctuate as investors await the final election outcome.
