The Trump Pump – Bitcoin Hits New All-Time High on Election Day

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As a researcher with over two decades of experience in financial markets, I’ve seen my fair share of market fluctuations and unexpected events. However, the current bull run in Bitcoin and other cryptocurrencies, particularly the surge following the recent developments in the U.S. election, has been nothing short of extraordinary.

Bitcoin reached nearly $75,000 today, setting a new record high for Bitcoin. The surge seems to reflect optimism about a potential Trump victory, often referred to as the “Trump Pump”. This increase follows a positive trend in the market, with Bitcoin gaining over 9% in the last day and more than doubling its value compared to last year.

The market’s current trend aligns with the ongoing US election, where Donald Trump is currently leading Vice President Kamala Harris in early vote counts (198 to 99), as reported by the Associated Press. Both contenders are vying for the decisive 270 votes, but at this point, Trump’s lead has rekindled the “Trump trade” – a surge driven by investor faith in his business-friendly and crypto-supportive standpoint.

In crypto prediction markets such as Polymarket, the betting volume on the election winner has soared to an astonishing $2 billion, a figure that’s nearly doubled over the past few weeks. With Trump’s chances of winning standing at approximately 96%, the cryptocurrency sector is abuzz with excitement. Industry heavyweights are viewing his stance as a possible advantage for digital assets. As VanEck’s head of digital assets, Matthew Sigel, noted, “There appears to be a strong wave of business leaders rallying behind Trump.” The positive momentum seems to be reflected in the performance of these assets.

2024 has seen a remarkable surge in the popularity of Cryptocurrency Exchange-Traded Funds (ETFs). Notably, BlackRock’s iShares Bitcoin Trust leads among the 575 ETFs launched this year, signifying Wall Street’s growing acceptance of Bitcoin. The influx of traditional investors into this asset class has been substantial, fueled by the Securities and Exchange Commission’s approval of 10 Bitcoin ETFs in January. As a result, Bitcoin ETFs have amassed over $20 billion in assets this year, making it easier for cautious investors to invest and boosting market liquidity significantly.

Currently, well-known cryptocurrencies such as Dogecoin (DOGE) are rising in tandem with Bitcoin, fueled by a robust performance from business magnate Elon Musk who supports Donald Trump. Musk, who has suggested establishing a Department of Government Efficiency (D.O.G.E.), has given new momentum to the meme coin. As a result, Dogecoin has seen a 20% increase since Tuesday.

 

 

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2024-11-06 08:36