Bitcoin Shoots Past $75,000 in New High over a Trump Return as US President

Flagship cryptocurrency clears $75k - will this rally have strong legs?

Bitcoin prices soared past $74,000 on Monday as crypto markets reacted to the emerging picture of the next US President.

As voting patterns pointed to a possible Trump win, Bitcoin breached its previous high of just over $73,000 set in March last. The cryptocurrency was trading at slightly over $71,000 just two hours ago.

"It has been a massive day for the crypto scene, with Bitcoin hitting $75k and some really grown-up sized moves playing out in the smaller coins," said Chris Weston, Head of Research at Pepperstone.

Bitcoin as hedge

"As the market prices in a Trump presidency, the idea of having the president of the world's biggest economy championing your corner is obviously a nice position to be in," said Weston. "The hope is he makes good on his proposal to turn the US into the global home of crypto output.

"Backing this, we see the prospect of the Republicans picking up both the House and Senate increasing – not yet a done deal, but the odds have increased, and this brings up concerns of deficit spending and ballooning debts – a dynamic to which some see as a reason to buy Bitcoin as a hedge against debasement."

There will be some hesitation to chase the Bitcoin price at current levels, since it always feels hard to buy any market at all-time highs, and while Trump and certainly a red sweep are yet to be called, pullbacks should be well supported as you cant really get any more bullish that a market at all-time highs, and it is here for a reason – the market likes the story.

The latest Bitcoin surge follows a pattern of sharp rises around and after the US Presidential election. This time, crypto followers had the extra spice of Elon Musk, the Tesla chief, being closely associated with the Trump campaign. (As well as being one of the key contributors to Trump’s run for the US presidency. In fact, there were quite a few tech titans who were on the Trump side.)

“We've said for months that Trump’s stance on cryptocurrency, combined with the uncertainty surrounding the election, would push Bitcoin to new heights," said Nigel Green, CEO of deVere Group, in a statement.

“This rally isn’t just about the election; it's about the fundamental shifts taking place in the digital financial system, of which Bitcoin is the leader.

"People are waking up to the fact that traditional systems are changing.”

So, Bitcoin continues the tradition of gaining each time a US Presidential election takes place. The currency registered an increase of more than 450% in the 12 months following the 2020 election. By end 2021, it had hit a then all-time high of nearly $69,000.

2024 US election continues the tradition

“Trump’s open support of cryptocurrency has triggered this (latest) surge," said Green. "As many investors anticipate that a Trump victory would clear the path for mainstream adoption and regulation that is both favorable and necessary for Bitcoin’s continued growth.”

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