Bitcoin reached a new milestone on November 6, surging past $74,900 as traders closely monitor the U.S. presidential election. Republican nominee Donald Trump currently holds a commanding lead over Democratic contender Kamala Harris, with 109 electoral votes to Harris’s 198, according to the Associated Press.
The cryptocurrency market saw significant volatility as Bitcoin surged more than 3% at the start of New York’s trading session, hitting an intra-day high of $70,577. The sharp increase in Bitcoin’s value is largely attributed to the heightened market uncertainty surrounding the U.S. election, with traders speculating on the impact of the election’s outcome on cryptocurrency regulation.
As Trump’s chances of winning rose to 88.6%, according to Polymarket, Bitcoin’s price surged past $70,000, while Harris’s chances dropped to below 12.1%. This correlation between Bitcoin’s price movements and Trump’s growing odds of victory has been evident throughout the year, as both candidates adjust their positions on crypto regulation.
Despite Bitcoin’s record-breaking performance, the market remains volatile. On November 4, Bitcoin ETFs experienced substantial outflows, with $541.1 million leaving funds such as Fidelity, ArkInvest, and Grayscale. In contrast, BlackRock’s IBIT saw $38.3 million in inflows. The ongoing uncertainty is also reflected in the Bitcoin options market, where traders are taking precautionary measures, as noted by Tony Stewart of Pelion Capital.
As the election unfolds, Bitcoin’s price will likely remain sensitive to political and economic developments, keeping traders on edge.
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