Bitcoin Surges Past $75,000 As US Exit Poll Results Drive Market Volatility

California: Bitcoin saw a substantial overnight rally, reaching a new all-time high of 75,000 dollars amid speculations that former President Donald Trump is gaining momentum in the U.S. presidential race. The world's number 1 cryptocurrency surged as high as 75,000 dollars, before slightly easing to 74,392.00 dollars, according to Coin Metrics data. This marks a 7 per cent rise following its previous peak of 73,797.68 dollars on March 14. For much of the year, Bitcoin traded within a relatively tight range under 70,000 dollars.

The election’s influence on the cryptocurrency market has been significant. Ryan Rasmussen, head of research at Bitwise Asset Management stated, “The election is having a massive influence on crypto."

"Expect bitcoin – and crypto more broadly – to be choppy in the days ahead … until we have definitive election results," Ryan Rasmussen further said.

Historically, election years have correlated with Bitcoin halving events, which restrict the supply of Bitcoin and often contribute to price rallies. Post-election cycles have also coincided with pivotal Federal Reserve policy shifts, and investors are hopeful for potential interest rate cuts this year.

Institutional Traders Prepared For Potential Rapid Swings In The Market?

James Davies, CEO of Crypto Valley Exchange, reported that many institutional traders are prepared for potential rapid swings in the market, highlighting the industry’s heightened anticipation around this election. The 2024 election is considered one of the most consequential for crypto markets, with Vice President Kamala Harris viewed by some as a regulatory risk, while Donald Trump is perceived as more crypto-friendly due to his direct outreach to the industry this year.

The government deficit has also been a focal point for investors, with concerns about fiscal policies that could devalue the U.S. dollar. With the deficit increasing by 8 percent to 1.8 trillion dollars in 2024, many are turning to Bitcoin as a hedge against inflation.

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In the early results, NBC News projected Trump victories in key states, including North Carolina and Georgia, though several major swing states remain undecided. Republicans are also expected to reclaim Senate control. These developments have caused additional market movement, as investors monitor election dynamics closely. Coinbase’s stock rose 3 percent in after-hours trading, while MicroStrategy shares climbed 4 percent.

As the final election results unfold, traders are bracing for Bitcoin’s reaction, with market sentiment split depending on the outcome. Bitcoin’s price could experience continued growth if Trump prevails, while a Harris victory could introduce downward pressure on cryptocurrency values.