Bitcoin News Today: As the results of the US election started coming out, Bitcoin broke its previous records and started moving towards new peaks. According to Coin Metrics data, the digital currency reached a new peak of $ 75,000, which finally closed with a gain of 7% at $ 74,392. With this increase, Bitcoin has broken its previous record of $ 73,797.68 made on March 14. Since then, Bitcoin remained below the $ 70,000 mark for most of the year. The impact of the elections being held in America is showing on cryptocurrency, in which former President Donald Trump is seen leading in the initial electoral college count.
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Investors keep an eye on US elections
Investors are closely monitoring the impact of the election on bitcoin, with volatility expected until a conclusive result emerges. A possible win by Vice President Kamala Harris could trigger a downward trend for bitcoin, while a win by Donald Trump is expected to push the cryptocurrency to new heights. Speaking to CNBC.com, Bitwise Asset Management research head Ryan Rasmussen said the election is having a huge impact on crypto. He said that regardless of the election result, bitcoin’s value is likely to rise.
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Market reaction and investor sentiment
The concerns surrounding the election have not only impacted Bitcoin but also its related markets. For example, exchange operator Coinbase saw a 3% gain in after-hours trading, while another important player MicroStrategy saw a 4% jump. These fluctuations reflect the sensitivity of the broader market to the election results and its potential impact on the cryptocurrency sector.
Which triggers will be monitored next?
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Market analysts are speculating on the election results for bitcoin, using historical data to forecast potential trends. According to Rasmussen, bitcoin has historically seen significant gains following US elections, with returns of approximately 87%, 44%, and 145% within 90 days following the 2012, 2016, and 2020 elections, respectively. These trends are partly attributed to bitcoin halving events, which coincide with election years. This reduces the supply of the cryptocurrency. Apart from this, the impact of Federal Reserve policies, especially the decision on interest rates, can also affect bitcoin’s post-election performance.
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