The pioneer crypto asset is on a rampage.
The “Trump trade,” which consists of bullish bets on higher Treasury yields, the dollar index, and Bitcoin, was in full swing as the Republican contender pulled ahead of Kamala Harris in the presidential race.
Bitcoin, the most valuable cryptocurrency by market capitalization, surged by over 10% during Wednesday’s Asian trading hours, hitting a record high of around $75,000 before cooling off to about $73,500.
However, over the past 24 hours, the cryptocurrency market became unfriendly to short sellers, with 124,686 traders losing $557.42 million. Binance saw the largest single liquidation order, valued at $75 million in BTC/USDT trades.
- Former U.S. President Donald Trump is poised to defeat Vice President Kamala Harris and secure the presidency again, with just three additional electoral votes from a state that leans overwhelmingly red. He would also bring a more liberal regulatory environment for cryptocurrencies in the world’s largest economy.
- Gold and Bitcoin are on a long-term bullish trajectory, driven by the expanding U.S. national debt and strong institutional buying. Gold has risen by 32% this year, far outperforming the S&P 500’s 21% gain. Bitcoin’s value has surged by 75% this year.
- The crypto industry believes it will benefit from Trump’s victory. Under the Biden administration, the vigorous crackdown on securities violations by crypto-based companies has forced some of these companies abroad and raised concerns about the industry’s long-term viability in the U.S.
Mr. Trump has pledged to end the regulatory effort and make the U.S. the “crypto capital of the world.” Before the election, analysts projected that Bitcoin could reach $80,000 or even $90,000 if Trump won.
He has also vowed to fire Securities and Exchange Commission (SEC) Chair Gary Gensler, a Democratic appointee. Trump has promised to appoint a new SEC chair and has stated on social media and in speeches that “Bitcoin will be made in the USA,” despite his controversial track record throughout this campaign cycle.
Kamala Harris has occasionally made broad remarks about supporting the industry but has not elaborated much on her specific views.
Meanwhile, Republicans have also taken control of the Senate, flipping seats in West Virginia and Ohio