Bitcoin soars 10% to $75,000 as U.S. election trends favour Trump

As counting for U.S. Elections progresses, and trends show an early lead for former president Donald Trump over Democratic candidate Kamala Harris, Bitcoin jumped to a new all-time high in the morning hours today and marked a 10% surge in the past 24 hours, moving past $75,000 for the first time since March 2024.

The latest data on crypto exchanges shows Bitcoin BTC up 8.28% (11AM) at ₹6,224,714.89 or $74,058.29. The BTC rally was seen amid trends on the betting marketplace Polymarket showing Trump's chances of winning at 97%.

Apart from heightened speculation around the U.S. presidential election results, the Bitcoin surge is also fuelled by significant inflows into exchange-traded funds (ETFs).

Notably, both presidential candidates have expressed support for the crypto industry in the U.S., which suggests regulatory reforms may increasingly align with investor interests.

Historically, the U.S. elections have often served as catalysts for significant price movement. "Since its inception in 2009, Bitcoin has navigated three election cycles, each followed by a rally to new heights, with prices never returning to pre-election levels," says Sumit Gupta, co-founder, CoinDCX.

He says a Trump victory could fuel this outlook, with potential regulatory appointments inclined towards crypto-friendly policies. "Reduced regulatory ambiguity could encourage even greater institutional participation, likely elevating Bitcoin’s value and sparking broader altcoin interest," says Gupta.

Increasing regulatory clarity and acceptance could only strengthen Bitcoin’s proposition as a long-term asset, he says. "While U.S. elections may influence sentiment in the short term, investors are focused on the fundamentals driving digital assets. The traction around Bitcoin ETFs, for instance, signals strong institutional interest, with over $50 billion in inflows that bring not only capital but a long-term perspective to the market," says Gupta.

Balaji Srihari, business head, CoinSwitch says the crypto platform observed a 15x spike in hourly trading volume compared to last week’s average, showcasing an intense wave of interest among users this morning. "Not just BTC, other popular tokens like DOGE, SOL, and SHIB have also experienced significant volume spikes."

"As the results will come in today, we expect high market volatility. Early indications suggest a potential Trump victory, and as a vocal advocate for crypto, his win could signal a promising future for the industry. However, looking at the industry’s growing influence and adoption; regardless of who wins- crypto’s momentum is undeniable."

Ryan Lee, chief analyst at Bitget Research says the U.S. presidential election results are still pending, but with Pennsylvania’s vote count surpassing 50%, the state has temporarily shifted red, giving Trump a slight lead. "This development caused Bitcoin to surge briefly, breaking through the $75,000 mark and reaching a historic high."

Lee says the market seems to have reacted in advance to Trump’s earlier hints about potentially designating BTC as a strategic reserve asset. "On platforms like Polymarket, bets on Trump’s victory have surged to an impressive 90%, despite the discrepancy with traditional polling data. This reflects the strong commitment of BTC believers and the crypto community’s anticipation of a favourable stance on digital assets under Trump’s potential leadership."

Both a Trump or Harris victory could signal substantial growth potential for U.S. stocks, while the effects on the crypto market are expected to vary. "If Trump were to win, BTC could continue driving the market higher without major pullbacks, potentially reaching even greater highs. In contrast, a Harris victory might lead to a short-term BTC correction, but long-term growth would still be anticipated, possibly achieving new records over time."

Shivam Thakral, CEO of BuyUcoin says as investors reacted positively to the news, BTC’s price increased rapidly, surpassing the previous high of $73,800 set in March. "The positive sentiment surrounding Trump's potential return has boosted Bitcoin and positively impacted the broader cryptocurrency market, with other digital assets like Ether and Dogecoin experiencing notable gains. Continued political developments and regulatory discussions will likely influence market dynamics as investor enthusiasm remains high."