Bitcoin Hits Record High, Surpasses $75,000 as Trump Leads in US Exit Polls

Bitcoin has reached a new milestone, soaring past the $75,000 mark on Wednesday following the release of early US presidential election exit polls indicating a slight advantage for Republican candidate Donald Trump. The leading cryptocurrency broke its previous all-time high of $73,750, demonstrating strong market enthusiasm driven by potential political shifts in the United States.

The Surge in Bitcoin and Other Cryptocurrencies

As of 8:50 am IST, Bitcoin was trading 8.4% higher, reaching $75,060. Ether, the second-largest cryptocurrency, also saw gains, climbing 7.2% to $2,576. This significant uptick in the cryptocurrency market reflects investor optimism, likely influenced by Trump's perceived openness toward digital currencies compared to his opponent, Kamala Harris.

The early exit polls show Trump leading in eight states, while Harris has secured three states and Washington, D.C. The election outcome remains undecided, with the result expected to hinge on seven critical swing states.

Market Reactions and Dollar Strength

Trump's favorable position in the exit polls has also affected the US dollar, with the dollar index—which measures the currency against six major counterparts, including the euro and yen—rising by 1.25% to 104.72. US Treasury yields moved higher as well, with the 10-year Treasury note yield increasing to 4.351% from 4.279%, approaching its recent four-month high of 4.388%. Similarly, two-year Treasury yields climbed to 4.241% from 4.189%.

Broader Cryptocurrency Gains

The positive market sentiment extended to other major cryptocurrencies. Binance Coin (BNB) rose by 5%, Solana gained 13.5%, and XRP increased by 5%. Dogecoin saw a notable jump of 21.6%, while Cardano, Shiba Inu, Avalanche, and Chainlink also experienced substantial gains, increasing by 6.6%, 10%, 12.3%, and 11.4%, respectively. The heightened activity has led to a significant increase in the volume of stablecoins, which now accounts for 92.46% of the total 24-hour crypto market volume, standing at $100.92 billion according to CoinMarketCap data.

Bitcoin Dominance and Market Cap

Bitcoin remains the dominant force in the cryptocurrency market, with its market capitalization climbing to $1.445 trillion. Its dominance is currently at 59.86%, with trading volume in the last 24 hours rising by 40.89% to $59.26 billion, underscoring the heavy interest and activity around Bitcoin in light of recent political developments.

Outlook and Implications

Analysts suggest that a potential Trump presidency could have implications for economic policies impacting inflation, tax cuts, and tariffs. The markets have historically shown sensitivity to Trump’s policy positions, which lean toward restricting immigration and introducing sweeping tax changes—moves that could drive up inflation and bond yields, affecting both traditional and cryptocurrency markets.

The latest crypto rally highlights the influence of political events on investor behavior. Bitcoin’s new high amid such events underscores its role as a key asset class, drawing both mainstream and institutional investors who view it as a hedge against economic uncertainty.

Reference from : -https://www.livemint.com/market/cryptocurrency/us-elections-2024-bitcoin-surges-over-71-000-as-early-trends-show-donald-trump-ahead-11730861549539.html