Africa: Bitcoin Hits All-Time High As U.S. Election Results Drive Volatility

7 November 2024
Daba Finance (Abidjan)

TLDR

  • Bitcoin hits record $75,000 following early U.S. election results favoring Trump, reaching $74,392.
  • Market volatility persists, influenced by election outcomes with expectations of new highs under Trump victory.
  • Analysis indicates Bitcoin near fair value at $70,000 pre-election, with potential for further gains.

Bitcoin surged to a record $75,000 as early U.S. election results appeared to favor former President Donald Trump. The flagship cryptocurrency jumped 7% overnight to $74,392, surpassing its previous high of $73,797 set in March. The gains intensified as Trump secured 230 projected Electoral College votes, including key states like North Carolina.

Crypto markets remained volatile, with investors anticipating sharp swings based on the election outcome. A Trump win is expected to push Bitcoin to new highs, while a victory for Vice President Kamala Harris could lead to a short-term dip, according to Ryan Rasmussen, head of research at Bitwise Asset Management.

CryptoQuant's analysis shows Bitcoin was trading near its fair value of $70,000 before election day, suggesting potential for further gains if election outcomes favor the market. Major crypto stocks followed suit, with Coinbase rising 3% and MicroStrategy advancing 4% in after-hours trading.

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Key Takeaways

Bitcoin's election-linked surge highlights the increasing influence of political factors on the cryptocurrency market. Trump is viewed favorably by the crypto community due to his pro-crypto stance, while Harris's policies are seen as potentially more restrictive for the industry. Historically, election years have yielded substantial returns for Bitcoin, boosted by market volatility and coinciding with halving years, which decrease its supply. In past elections, Bitcoin returns reached 87%, 44%, and 145% in the 90 days following the 2012, 2016, and 2020 elections. This year, alongside the election, traders are watching for potential Federal Reserve rate cuts, which could further support Bitcoin's rally.

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