New Delhi: Bitcoin has reached new heights, surpassing $75,000 for the first time in history on Wednesday fueled by early exit polls from the U.S. presidential election that showed a narrow lead for the Republican candidate Donald Trump the cryptocurrency surged at 8.4% climbing to $75,060, breaking its previous record of $73,750. Trump’s gains in early voting results which show him leading in eight states, while Democrat Kamala Harris secured three states and Washington DC, which has raised speculation that the Republican candidate may have a favorable stance on cryptocurrencies.
Investors have reacted positively as Trump’s policies are often perceived as beneficial to the crypto sector compared to Harris’s policies, which tend to lean more toward Centre-left. Bitcoin’s surge was mirrored by other leading cryptocurrencies which saw a 7.6% rise to $2,576, while smaller tokens like BNB, Solana, XRP, and Dogecoin also experienced notable gains. Solana surged by 13.5% Dogecoin leaped by 21.6% and other altcoins like Cardono, Shiba Inu, Avalanche, and Chainlink saw increases ranging from 5% to 12.3%. The rally across the board reflects growing optimism about the crypto market, spurred by a mix of political uncertainty and potential policy shifts under Trump’s leader also.
The rise in cryptocurrency price also coincided with movements in traditional financial markets, the dollar index which measures the strength U.S. dollar against the basket of major currencies, rose by 1.25% and reached 104.72. This movement suggests that investors may anticipate inflationary pressure and economic shifts to suffer Trump’s proposed policy, which includes tax cuts, restricted immigration, and higher traffic analysts believe these measures could increase inflation and bond yields.
US treasury yields also move higher in response to the election exit polls, the 10-year treasury yield climbed to 4.351%, while the two-year yield rose to 4.241%. This uptick signals a potential tightening of the economy under the Trump’s administration which could further push inflation and bond yields upwards, ultimately benefiting risk assets like Bitcoin and other cryptocurrencies. The ongoing election results, combined with the favorable policies expected under Trump’s potential presidency have injected fresh energy into the crypto market, investors are watching closely as the final election outcome could have lasting implications for both traditional and digital currencies.
