Bitcoin Briefly Reaches an All-Time High Amid a Crypto Boom. The Reason: Trump

The volatility of cryptocurrencies is once again apparent. After hitting a record high, bitcoin experienced a rapid decline in value.

November 6, 2024, 07:42 ET

Javier Pastor

Senior Writer

Computer scientist turned tech journalist. I've written about almost everything related to technology, but I specialize in hardware, operating systems and cryptocurrencies. I like writing about tech so much that I do it both for Xataka and Incognitosis, my personal blog. LinkedIn

Bitcoin had been striving to reach a new all-time high for some time. On Tuesday, it finally achieved a price of $75,358. However, shortly after reaching the record high, its value dropped significantly. At the time of publication, it was around $74,000.

The market had been relatively stable. In March, bitcoin reached an all-time high of $73,800. Since then, its value fluctuated within the $60,000 range. However, developments in the U.S. presidential election sparked a unique reaction in the market.

A Trump victory. As the election results were announced, indicating a victory for former President Donald Trump, bitcoin values began to rise. The cryptocurrency industry viewed Trump’s re-election positively. In contrast, Vice President Kamala Harris wasn’t perceived as being as favorable to cryptocurrencies, according to insights from CoinDesk.

Significant increases for cryptocurrencies. The value spike didn’t only impact bitcoin. Nearly the entire crypto market experienced notable rises ranging from 5% to 10%. Some cryptocurrencies, like dogecoin, even saw increases of around 20%. This is particularly striking for dogecoin, a memecoin known for its extreme volatility, especially following supportive messages from Tesla CEO Elon Musk.

On Tuesday, the market saw a remarkable rise for many cryptocurrencies, although stocks are pulling back noticeably. | Image: CoinMarketCap
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Republicans flip the Senate. According to CoinDesk, Trump’s victory isn’t the only factor influencing the change in cryptocurrency trends. More importantly, the Republican Party has retaken control of the Senate for the first time in four years, which could facilitate the implementation of digital asset legislation. Moreover, Senator Sherrod Brown, D-Ohio, who has been an obstacle to this legislation, will step down following the presidential election results.

What’s next? The U.S. presidential election appeared to be a possible turning point for the cryptocurrency market, which has remained “relatively” stable in recent months. This could shift dramatically in either direction, and we may soon begin to see the effects of both the last bitcoin halving and the approval of ETF funds based on bitcoin and ethereum.

Image | Vasilis Chatzopoulos

Related | Elon Musk Issues Warning About the Magnitude of the U.S. Debt, Highlighting the Rise of Bitcoin and Gold

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