- Bitcoin hit a new all-time high price of $74,504, surpassing its previous record of $73,780 set in March 2022, amid strong demand for Bitcoin ETFs and the ongoing U.S. presidential election.
- The surge in Bitcoin’s price is attributed to a potential “Trump trade,” as the crypto industry expects favorable policies from former President Donald Trump if he wins the election, while his opponent Kamala Harris has been relatively quiet on crypto issues.
- Bitcoin ETFs have seen over $20 billion in inflows this year as traditional investors can now easily gain exposure to Bitcoin through products offered by major financial firms like BlackRock and Fidelity.
Bitcoin has hit an all-time high ahead of a divisive US election on Tuesday and general bullishness surrounding digital assets. The world’s largest crypto rose to $74,504 on the day, beating its previous March all-time high of $73,780, according to CoinGecko data.
Bitcoin’s Recent Price Surge
Bitcoin is now up more than 9% over the last 24 hours. It has more than doubled in price in the last 12 months. The price surge comes amid the US election results between former President Donald Trump and Vice President Kamala Harris, with the former gaining an early lead in electoral college votes. Trump or Harris need 270 electoral college votes to secure the presidency. Trump leads with 198 to Harris’ 99 according to the latest figures from the Associated Press.
Impact of the US Presidential Election
Analysts have been citing a “Trump trade” is in play, which they say has helped bolster risk assets including equities and crypto. The business mogul and former reality TV star has explicitly said he will help the digital asset industry while Democratic candidate Kamala Harris has been quieter on the issue. Trump’s renewed shot at claiming a second term in the White House has been keenly felt around the crypto industry according to VanEck’s head of digital assets research Matthew Sigel.
Role of Bitcoin ETFs
But Bitcoin’s spike earlier this year arguably comes down to the approval of Bitcoin ETFs. The Securities and Exchange Commission (SEC) in January approved 10 of the vehicles which make it easy for people to buy shares that track the price of Bitcoin and trade on stock exchanges. A flood of capital has since entered the space as traditional investors previously too cautious about buying the asset can now do so easily via products by Wall Street titans such as BlackRock and Fidelity. Such funds have seen more than $20 billion worth of inflows so far this year.
Conclusion
The US presidential election is having a noticeable impact on Bitcoin’s price, along with the growing popularity and adoption of Bitcoin ETFs. As the election results become clearer in the coming days, it will be interesting to see if Bitcoin continues to hit new highs or if uncertainty causes some volatility. Either way, Bitcoin’s long-term adoption trend still seems poised to continue.
