What happened?
The U.S. presidential election vote counting started today (6th), with key battleground states like Georgia, Pennsylvania, and Michigan seen as indicators of winning. As of the time of writing, Republican candidate Trump is performing better in battleground states.
With Trump's unstoppable performance, the price of Bitcoin soared to a new high of $75,000.85 on November 6, breaking the previous historical record of $73,679 set earlier this year.
The prospect of Trump winning has also led to a rise in Trump concept stocks and blockchain concept stocks.
Bitcoin broke through the historical high of $75,000, leading to large-scale liquidations of short positions.
During the U.S. presidential election vote counting, according to (AP) vote statistics, as of this (6th) afternoon at 3 PM, Trump temporarily leads with 247 votes against Harris's 214 votes, causing the cryptocurrency market to surge. Bitcoin even briefly broke through $75,000, setting a new high for the year.
According to CoinGlass data, this price surge led to approximately $179 million in Bitcoin short positions being liquidated within 4 hours. Traders originally predicted that the results of the U.S. presidential election would lead to a drop in Bitcoin prices, but the reality was strong and growing demand for Bitcoin spot, leaving short sellers severely impacted.
💡Short Selling: Refers to a trading method aimed at profiting from a decline in stock prices. Investors predict that the price of a certain asset will fall, so they borrow the asset and sell it, then buy it back at a lower price after the price drops, profiting from the price difference.
On the other hand, Dogecoin has also become a beneficiary under the election's influence. Since the beginning of October, Dogecoin has risen 65% in the fourth quarter of this year and surged 12% in the past 24 hours under the positive expectations of the U.S. presidential election results.
'Dogfather' Elon Musk proposed the idea of establishing a 'Department of Government Efficiency' this August and stated on social media that he is 'willing to serve Trump,' noting that the department's abbreviation is 'D.O.G.E.', which reignited discussions in the community about Dogecoin.
This has also led many cryptocurrency traders to believe that if Trump is indeed successfully elected, the U.S. government might really establish a new department 'D.O.G.E.' and further promote the rise of Dogecoin and the cryptocurrency market.
According to on-chain data, the number of newly created DOGE wallet addresses has increased by 100%, indicating that a large amount of new capital has flowed into DOGE before the election.
Blockchain and Trump concept stocks have risen in response, could Bitcoin reach $100,000 by the end of the year?
Additionally, since Trump and Kamala Harris have different policies on various issues, the prices of many 'concept stocks' have also risen with the changing election situation.
Trump's friendly attitude towards cryptocurrencies has led to a surge in the cryptocurrency market, with discussions around 'Bitcoin concept stocks' also continuously increasing. Taiwanese blockchain concept stocks have also surged, such as Hanhwa Technology and World Chip-KY hitting the daily limit up, while stocks like QDCloud, Leadtek, Chengqi, and ASRock increased by 5 to 8%.
Additionally, besides cryptocurrencies, Trump has also proposed tax reduction policies, promoted manufacturing recovery policies, and relaxed financial regulations. Therefore, 'Trump concept stocks' including steel, chemicals, financial stocks, cryptocurrency payments, and cryptocurrency mining are also expected to benefit.
CK Zheng, co-founder of ZX Squared Capital, believes that if Trump is re-elected, U.S. policies will favor the development of cryptocurrencies, thus expecting the upward momentum of Bitcoin to continue.
Moreover, Markus Thielen, research director at 10x Research, predicts that Bitcoin could reach a new high of $100,000 in the first quarter of 2025.
References: cointelegraph, cointelegraph, cointelegraph
