Bitcoin hit a new record high, surpassing $75,000 on Nov. 6, as it surged past its previous peak of $73,800 from March. This increase came amid growing investor interest in crypto, driven by early election updates in the United States that indicated Donald Trump was leading.
As the New York market opened, Bitcoin (BTC) gained momentum, jumping more than 3% to reach an intra-day high of $70,577. Election-related market volatility seemed to fuel this rise in the crypto sector.
Late in the U.S. trading session on Nov. 5, Bitcoin crossed a fresh milestone, peaking at $75,000.85 at 3:08 am UTC on Nov. 6 on Coinbase, based on data from TradingView.
Preliminary election results from the Associated Press showed Trump holding an edge, with 198 electoral votes compared to Kamala Harris’ 112 as of 3:30 am UTC on Nov. 6. The path to victory requires 270 electoral votes.
At this writing, Bitcoin is valued at $74,339, marking a 7.2% increase over the past 24 hours.
For most of 2024, traders have been optimistic about Bitcoin’s potential value, particularly if Trump were to secure the presidency. Over the year, both Republican and Democratic candidates have shaped and shifted their policy positions on crypto regulation, signaling implications for the industry.
Is Bitcoin’s rally correlated with Trump’s rising odds?
Bitcoin’s price movement appears to mirror Trump’s increased chances of victory, as seen on the prediction platform Polymarket.
On Nov. 5, Bitcoin climbed above $70,000 as Trump’s projected odds of winning rose past 60%, while Harris’ probability dipped to below 39%.
Bitcoin price volatility is expected to remain after the US elections
Even with this all-time high, traders anticipate that Bitcoin’s price will continue to be unpredictable, with shifts in market positioning reflecting this expectation.
On Nov. 4, there was an unusually large outflow from Spot Bitcoin ETFs, totaling $541.1 million, with major players like Fidelity, ArkInvest, Bitwise, Grayscale, and GBTC experiencing sell-offs. Meanwhile, BlackRock’s IBIT saw inflows of $38.3 million.
In the Bitcoin options market, a range of protective strategies was also observed. Pelion Capital founder Tony Stewart noted this trend, adding depth to the analysis provided options expert Marcel Pechman, who explained:
“Traders generally have a bullish outlook, especially around key dates like Nov. 7, Nov. 15, and Nov. 29. Many new positions target prices from $72,000 to $75,000 or higher. However, a notable $64,000 put buy suggests some caution, with market makers exposed to greater risk if Bitcoin’s price drops due to their sale of lower-priced puts.”
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