Bitcoin hit an all-time high of over $75,000 on November 6, well above its previous high of $73,800 in March as traders flocked to the cryptocurrency as early results of the US election put Donald Trump ahead.
Bitcoin (BTC) initially performed strongly at the start of the New York open, rallying more than 3% to hit an intraday high of $70,577 as volatility related to the US presidential election surged in cryptocurrency markets.
A few hours after the close of the US trading day on November 5, Bitcoin hit an all-time high of $75,000.85 at 3:08 a.m. UTC on November 6 on Coinbase, according to TradingView.
Early election results from the Associated Press show Trump is ahead as of 3:30 a.m. UTC on November 6, with 198 Electoral College votes compared to Kamala Harris’ 112. Either side needs at least 270 electoral votes to win.
Trump led Harris in early results, with many states on the U.S. West Coast and key battleground states yet to be called. Source: AP
At the time of publication, Bitcoin is trading at $74,339, up 7.2% in the last 24 hours.
For most of 2024, traders have expressed a positive view of Bitcoin’s price potential if Republican presidential candidate Donald Trump wins the election, and throughout the year, Republican and Democratic candidates have advanced policy views on regulation within the cryptocurrency industry. Yes.
On November 5, Bitcoin analyst Tuur Demeester suggested that Trump’s preference for election news was also linked to the rise in Bitcoin prices.
Is Bitcoin’s rally correlated with Trump’s odds of a rise?
Bitcoin price appears to be in line with Trump’s rising odds on decentralized prediction market Polymarket.
On November 5, the price of Bitcoin rebounded back above $70,000 as Trump’s predicted odds of victory were pushed above 60%, while Harris’ predicted odds fell below 39%.
Donald Trump’s odds of winning reached 80% at PolyMarket. Source: Polymarket
Bitcoin price volatility is expected to persist even after the US election.
Despite hitting record highs, traders expect the Bitcoin price to remain volatile, and changes in market participants’ positioning reflect this sentiment.
On November 4th, the Spot Bitcoin ETF witnessed a rare and strong outflow of funds. Selling of Fidelity, ArkInvest, Bitwise, Grayscale and GBTC brought total outflow to $541.1 million. Meanwhile, BlackRock’s IBIT saw inflows of $38.3 million.
Bitcoin ETF Flows (USD Million). Source: Farside Investors
A series of protective measures have also been observed in the Bitcoin options market, something that Pelion Capital founder Tony Stewart has thoroughly discussed.
Adding some color and translation to Stewart’s comments, Cointelegraph options analyst Marcel Pechman said:
“Traders are generally optimistic, especially on November 7, November 15 and November 29. Most new bets were placed at prices above 72,000 to 75,000. Notable buying at $64,000 suggests some fear if Bitcoin falls, with market makers facing higher risk as they sell puts at lower prices.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.