Bitcoin, the world’s leading cryptocurrency, surged past its previous all-time high, breaking the $75,000 mark for the first time. The record-breaking rally comes as investors in the digital currency express growing optimism about former President Donald J. Trump’s chances in the ongoing U.S. election.
Bitcoin Hits New Heights Amid Election Drama
On Tuesday, Bitcoin’s price broke its March 2024 record of roughly $73,000, fueled by the latest election results showing a rising likelihood of a Trump victory. Although crucial swing states had yet to be decided, the odds of Trump securing another term reportedly surged to nearly 90 percent, according to crypto-powered betting platforms that cryptocurrency investors track closely. As a result, Bitcoin’s price spiked, reflecting the heightened sense of optimism among crypto enthusiasts who see a potential Trump win as a boon for the industry.
Why Crypto Supporters Are Backing Trump
Crypto proponents believe that a Trump victory would significantly benefit the sector, which has been under increasing regulatory scrutiny during the Biden administration. Over the past two years, the Biden administration has ramped up its efforts to curb securities violations and clamp down on crypto companies operating in the U.S. These measures have forced several crypto firms to relocate operations overseas and raised doubts about the long-term future of the industry in the United States.
In contrast, Trump has consistently promised to loosen regulations, specifically around cryptocurrencies, and position the U.S. as the “crypto capital of the planet.” His stance is seen as a direct counter to the regulatory pressure from the current administration. Prior to the election, many analysts had predicted that if Trump were to win, Bitcoin could soar to $80,000 or even $90,000.
The Role of Institutional Investment and Election Spending
Bitcoin’s rise to record levels this year coincided with the approval of a new investment product tied to the cryptocurrency—a Bitcoin-linked exchange-traded fund (ETF). This financial instrument has attracted billions of dollars in institutional investments, which has significantly buoyed Bitcoin’s price.
At the same time, the cryptocurrency industry has been heavily involved in the political process, funneling tens of millions of dollars into key congressional races in an effort to secure more crypto-friendly policymakers. Super PACs connected to major crypto players such as Coinbase and Ripple have raised over $170 million in support of pro-crypto candidates. While these PACs did not engage directly in the presidential race, notable figures like Tyler and Cameron Winklevoss, founders of the Gemini crypto exchange, have made substantial donations to support Trump’s campaign.
A Volatile Market and Long-Term Uncertainty
Despite Bitcoin’s recent surge, the cryptocurrency market remains highly volatile. The price of Bitcoin, which crashed in 2022 following scandals like the collapse of the FTX exchange, has proven to be unpredictable. However, the current upswing has been fueled not only by the favorable regulatory outlook under a potential Trump administration but also by institutional investment and broader market enthusiasm.
As the election continues to unfold, Bitcoin and other cryptocurrencies will likely remain a hot topic among investors, regulators, and policymakers alike. With significant corporate spending, industry lobbying, and the prospect of favorable regulations on the horizon, the crypto market is positioned for a new era of growth—or potential volatility—depending on the outcome of the election.
As Bitcoin continues to break records, the eyes of both the financial world and the political sphere will remain focused on the upcoming days and weeks.
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