Bitcoin loves Donald Trump.
The top cryptocurrency surged almost 10%, to $75,358, as results poured in Tuesday from the US presidential election and the Republican Party nominee closed in on the 270 Electoral College votes he needs to win the White House.
So, too, did other digital assets. Ether was up 8.5%, and Solana’s SOL token skyrocketed more than 15%, according to data from CoinGecko.
The total market value for the asset class has now increased more than 50% in 2024, to $2.6 trillion.
Crypto market analysts have long forecasted a monster rally should Trump, who embraced the industry this summer, defeat Vice President Kamala Harris on November 5.
With the former president leading in the crucial battleground states of Pennsylvania, Michigan, and Wisconsin early Wednesday, investors appear ready for the ride.
Trump’s crypto agenda
Now investors are girding for a longer-term rally should Trump win and fulfill the many promises he made to crypto folk this year.
In a Monday note, analysts at research and brokerage firm Bernstein said Bitcoin’s price would reach $90,000 on the back of a Trump victory.
An analyst of British bank Standard Chartered offered an even more bullish forecast, suggesting that his victory could propel Bitcoin’s price up to $125,000 by the end of 2024.
The key is Trump’s agenda for the industry.
As he courted voters in the crypto space this year, he pledged to end the US Securities and Exchange Commission’s crypto crackdown and fire Gary Gensler, the agency’s hard-charging chair.
Trump vowed to create a Bitcoin strategic reserve with taxpayer money. He even said he would release Ross Ulbricht, the Silk Road proprietor, from federal prison.
Taken together, this all added up to a winning scenario for crypto investors. And as soon as the election started breaking Trump’s way, they acted.
On Tuesday night, Bitcoin posted sudden spikes of 3% to 4%. Now it’s jumped past its prior all-time high of $73,000, which it achieved in March.
As for the long term, analysts are even more bullish. Bitcoin has established itself as a resilient asset that will survive no matter who sits in the Oval Office, they argue.
“The Bitcoin genie is out of the bottle, and it is hard to reverse this course,” Bernstein analysts wrote earlier this week. They projected that Bitcoin will hit $200,000 by the end of 2025, no matter who wins.
Traders will be watching closely for signals on Bitcoin’s next price move during the Federal Reserve meeting on Thursday. The central bank is anticipated to cut interest rates again, following its reduction in September.
Analysts are also eying factors such as China’s $284 billion stimulus package that are likely influence the price of Bitcoin over the next few months, analysts said.
Crypto market movers
Bitcoin is up 8.6% over the past 24 hours to trade at $74,715.
Ethereum is up 7.3% to trade at $2,602.
What we’re reading
‘Buy the dip’ even in most bearish election outcome, says Bitwise CIO — DL News
The Institutions Are Coming (For Real This Time) — Milk Road
Bitcoin Hits New All-Time High of $75,000 — Unchained
The US Elections Vs. Your Crypto Bags — Milk Road
Scaramucci: I’d help Trump or Harris on crypto. And Bitcoin will hit $170,000 either way — DL News
Eric Johansson is DL News’ News Editor. Got a tip? Email at eric@dlnews.com.
