- Bitcoin breaks new all-time high above $74,000 amid Donald Trump’s early lead in the 2024 US presidential election
- Bitcoin has gained nearly 70% year-to-date, spurred by substantial inflows to the new spot bitcoin ETFs in the United States
- Analysts expect volatility as key swing states begin counting votes, but prediction markets are overwhelmingly expecting a Trump victory
Bitcoin’s price has set a fresh all-time high above $74,000 on November 5th, 2024 as former President Donald Trump takes an early lead in the 2024 presidential election.
Price Action
The largest cryptocurrency by market capitalization crossed the $73,737 mark to reach a new peak of around $74,700. This represents a gain of nearly 95% over the last 24 hours.
Bitcoin has continued its bull run after first surpassing its previous all-time high of $69,000 set in November 2021. The cryptocurrency hit $73,000 in March before ranging between $50,000 and $70,000 for much of the next seven months.
Other major cryptocurrencies like Ether and Solana also saw significant price jumps, leading to a 6.77% increase in the overall crypto market capitalization.
Macro Trends
The fresh record comes amid the hotly contested 2024 U.S. presidential election. Donald Trump has taken a more crypto-friendly stance compared to Democratic candidate Kamala Harris.
In May, Trump’s campaign started accepting cryptocurrency donations. He has also met with bitcoin mining executives and stated his intention to make the U.S. the center of the crypto industry.
According to prediction markets, Trump holds an 84.3% chance of winning the election as he takes an early lead in electoral college votes. This potential outcome appears to be boosting bullish sentiment.
Market Drivers
Bitcoin’s price has risen nearly 70% year-to-date, partially driven by significant inflows into spot bitcoin ETFs in the U.S. These products have generated over $450 billion in cumulative volume so far.
The recent Bitcoin halving event also likely supported gains. The halving reduced the block reward subsidy from 6.25 BTC to 3.125 BTC, constricting new supply.
Analysts say the combination of macro uncertainty and positive technical factors like the halving could spur bitcoin to new highs following the final election results.
