Bitcoin surged to an all-time high of $75,060 on Wednesday, buoyed by early US presidential election polls showing Republican candidate Donald Trump in the lead. The cryptocurrency’s price increase of 8.4% was driven by investor optimism surrounding Trump’s favourable stance on cryptocurrencies compared to Democratic candidate Kamala Harris.
Investors interpret Trump’s potential policies, like tax cuts and restricted immigration, as beneficial for the crypto sector, contrasting with Harris’s more centrist economic views. This outlook spurred significant gains in Bitcoin and other cryptocurrencies, reflecting broader market trends influenced by possible shifts in US fiscal policy.
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Alongside Bitcoin’s gains, the dollar index rose 1.25% to 104.72, reflecting market anticipation of economic changes under Trump’s potential administration. The policy expectations have stirred inflationary concerns, impacting bond yields, which saw the 10-year Treasury yield rise to 4.351% and the two-year yield to 4.241%.
Bitcoin’s market cap climbed to $1.445 trillion, reaffirming its dominance with a 59.86% share of the total crypto market. Trading volumes surged, with Bitcoin’s 24-hour trading volume up 40.89%, reaching $59.26 billion, indicating heightened investor interest in the cryptocurrency.
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Stablecoins also experienced a significant increase in trading, reaching $100.92 billion, or 92.46% of the total 24-hour crypto market volume. These fiat-pegged digital assets provide stability, catering to risk-averse investors amid market uncertainty sparked by the ongoing election results.
As election outcomes unfold, the crypto market remains on edge, anticipating how Trump’s potential win could impact both traditional and digital currencies. The final result is expected to have lasting implications on inflation, monetary policies, and crypto market dynamics.
