Bitcoin has risen to an all-time high of $75,000, breaking its previous record. A number of causes are driving the cryptocurrency’s climb, and this spike coincides with increased political unpredictability surrounding the U.S. presidential elections.
Institutional investment and expanding public usage have contributed to the bitcoin market’s impressive growth in recent months. Over $50 billion has been invested in Bitcoin ETFs, indicating a change in the way conventional financial institutions perceive digital assets. The recent price fluctuations of Bitcoin have been facilitated by this institutional backing.
Sumit Gupta, co-founder of CoinDCX, “As the U.S. election results unfold, the crypto market is entering uncharted territory, with both presidential candidates expressing support for crypto.” The present rise is predicated on a pattern of growing approval from both financial institutions and regulatory agencies.
This price change isn’t an isolated incident, according to market watchers. Bitcoin’s lead is being followed by other cryptocurrencies, according to Edul Patel, CEO and co-founder of Mudrex: “Other major cryptocurrencies, including Ethereum, BNB, and Solana, are also advancing alongside Bitcoin.
The current political climate is having an impact on the cryptocurrency market. According to Patel, “Donald Trump’s lead in the election race has significantly fuelled this rally.”
He continued, “BTC’s price movement has also been significantly influenced by the increase in ETF inflows over the course of the month. Bitcoin’s future may be influenced by the results of the presidential election. According to Gupta, “a Trump win could give this outlook more impetus, with possible regulatory appointments favouring policies that are favourable to cryptocurrency.” Even more institutional engagement may be encouraged by less regulatory ambiguity.
Compared to Harris’s progressive-left program, financial analysts predict that Trump’s proposed policies on sweeping tariffs, tax cuts, and immigration restrictions will raise bond yields and inflation.
With the 10-year note rising from 4.279% to 4.351% and most recently hitting a four-month high of 4.388%, U.S. Treasury bond rates have increased. Additionally, the two-year yield rose from 4.189% to 4.241%.
Significant increases were also seen by other cryptocurrencies, including Dogecoin (+21.6%), BNB (+5%), Solana (+13.5%), XRP (+5%), Cardano (+6.6%), Shiba Inu (+10%), Avalanche (+12.3%), and Chainlink (+11.4%).
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