As the results of the U.S. presidential election are gradually revealed, market sentiment is high, and Bitcoin soared to historical highs in overnight trading. Investors are betting on former President Trump taking the lead in the election race, driving up the price of this cryptocurrency. With investors keenly watching, whether Bitcoin can maintain this upward trend has become the focus.
Trump surpasses the winning threshold of 270 electoral votes and will address the crowd.
Before the deadline, Trump had already secured 277 electoral votes. A candidate is considered definitively elected if they receive more than 270 electoral votes across states. Trump's supporters have gathered at the campaign headquarters, waiting for him to deliver his victory speech.
On the on-chain prediction platform Polymarket, the results have already directed towards Trump's victory:
Bitcoin breaks through 75K, setting a historical record.
Bitcoin's price reached a historical high of $75,000, rising over 8% in 24 hours, closing at $74,500 before the deadline. Prior to this, Bitcoin's highest record was $73,797.68 set on March 14 of this year, after which it remained in a narrow range below $70,000.
Trump leads in the election race, Bitcoin rises sharply.
Bitcoin's nighttime rise coincided with Trump's early lead in the electoral votes. NBC News predicts Trump will win North Carolina and Georgia, while competition in other key swing states remains tight. Additionally, the Republican Party may regain a majority in the Senate, further stimulating the cryptocurrency market.
Stock prices of cryptocurrency-related companies are positively affected.
As Bitcoin rises, the stock price of cryptocurrency exchange Coinbase increased by 3% in after-hours trading, while business intelligence company MicroStrategy rose by 4%. Both companies hold significant investments in the crypto market and are particularly sensitive to fluctuations in Bitcoin prices, with investors expecting their stock prices to continue to fluctuate until after the election.
Bitcoin has shown strong performance in past post-election periods, and the market expects favorable policy directions.
Historical data shows that Bitcoin usually performs better in the 90 days following the election. In the election years of 2012, 2016, and 2020, Bitcoin's returns were 87%, 44%, and 145% respectively. This trend is partly due to the fact that election years coincide with Bitcoin halving events, where reduced supply drives prices up. Additionally, changes in Federal Reserve policy after the election often affect Bitcoin prices. The market anticipates that the Federal Reserve may further lower interest rates after this year's election, enhancing Bitcoin's appeal as a hedge.
Trump favored by the crypto industry, Harris's stance raises concerns.
This U.S. presidential election is referred to as the most important election for the crypto industry, especially since many cryptocurrency supporters believe Trump is the more favorable candidate for the industry. Trump has previously claimed to 'support crypto' and has frequently expressed support for the industry during the campaign, in stark contrast to Harris's attitude. Conversely, the risk of Harris winning has caused unease among crypto operators, as she may implement stricter policies on the industry.
Economic deficits and concerns over tax policies make Bitcoin a hedging tool.
Another focus for voters is the increasingly expanding government deficit in the United States. In the fiscal year 2024, the U.S. government deficit rose by 8%, reaching $1.8 trillion, raising concerns among some voters about inflation risks and the depreciation of the dollar. Bitcoin, like gold, is seen as an effective tool to hedge against currency devaluation and inflation. With increasing uncertainty surrounding the election and fiscal policies, investor demand for Bitcoin has also strengthened accordingly.
This article states that Trump has reached the winning threshold of 270 electoral votes, Bitcoin stands firm at historical highs, and statistics show that the price performs well 90 days post-election, first appearing in Chain News ABMedia.
