Bitcoin Skyrockets To $75,000 As Trump Victory On The Cards

On Tuesday evening, Bitcoin, the world’s largest cryptocurrency by market capitalization, soared to a new all-time high on major crypto exchanges. Investors are betting on Donald Trump gaining an edge in the US elections and reclaiming the White House. 

Bitcoin Hits $75,000 As Trump Projected to Win Presidency

The price of Bitcoin (BTC) rose by $6,000 to a record $75,005, topping its previous peak of $73,797 by 10%. The flagship cryptocurrency hit its previous record high on March 14 following the widely successful launch of spot Bitcoin ETFs and has traded in a narrow range below $70,000 for most of the year. 

Bitcoin began its climb after Trump took an early lead in the Electoral College. Interestingly, this happened even though the news media had not yet called for the Republican candidate in any major swing states. 

BTC has risen sharply over the last two hours alongside Trump’s odds on the online betting marketplace Polymarket, where he is given an 85% chance of winning the US presidency. Traders view a Trump victory as bullish for the global financial markets and the crypto industry compared to Kamala Harris, who isn’t perceived as crypto-friendly.

Ryan Rasmussen, head of research at Bitwise Asset Management, said that the election is having a “massive influence” on crypto and warned investors to expect the prices of Bitcoin and other cryptocurrencies to be “choppy” until the election results are definitive. 

He also added that if Trump wins, BTC will see new all-time highs, and if Harris wins, he expects a “decent short-term sell-off” with prices taking at least a month or two to recover. Rasmussen noted that regardless of who wins the election, Bitcoin is set to go higher. 

During his campaign, Trump promised he would make the United States the capital of Bitcoin and cryptocurrencies. Franklin Templeton’s Max Gokham said that if he had to pick one asset as a barometer of Trump sentiment, it would be Bitcoin. 

The Congressional races also show a clean sweep for Trump and the Republicans, which would likely boost the dollar and Treasury yields, owing to the former President’s plans to cut taxes and impose tariffs on imports. 

SPI Asset Management’s Stephen Innes said that Republican control of the Senate and House could bring “sweeping” shifts in government spending and tax policies. 

Part of Bitcoin’s spike could be attributed to a $94 million liquidation of bearish or hedged bets against the apex cryptocurrency. Furthermore, BTC is now changing hands at a notable premium on the Coinbase crypto exchange. 

DOGE Up 20% in 24 Hours as Department of Government Efficiency (D.O.G.E) Set to Become Reality 

Meanwhile, Dogecoin (DOGE) has been up nearly 20% since Tuesday. The popular memecoin, supported by Elon Musk, extended its 30-day gains to over 65%, making it the best-performing major cryptocurrency in the market. 

Futures derivatives tracking the price of DOGE recorded over $30 million in short liquidations over the past 24 hours. This is an unusually large figure, suggesting that the move was partly driven by covering losing bets. 

Open Interest, or the number of unsettled futures bets, is up by 8.3 billion DOGE on Wednesday, compared to 7 billion DOGE on Monday, showing brisk demand and expectations of further market movements. 

Dogecoin’s fate changed forever after tech entrepreneur Elon Musk proposed the idea of forming a new Department of Government Efficiency (D.O.G.E) under the Trump administration to make government spending and monetary planning more effective. The abbreviation is a clear node to the dog-themed memecoin. 

The bullish sentiment for DOGE has also spilled over to other dog-themed tokens, with Shiba Inu (SHIB), Floki (FLOKI), and Bonk (BONK) rising by 10%. 

According to the Associated Press, early trends show Trump winning Kentucky, Florida, West Virginia, and another four electoral college votes, far outpacing Kamala Harris. Trump is currently leading the Electoral College 198 to 99. 

At the time of writing, Bitcoin (BTC) is trading at $74,499 – up 8.9% over the past 24 hours. 

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