Bitcoin spiked to a new all-time high above $76,600 on Thursday amid bullish sentiment around Donald Trump’s election victory.
The Federal Reserve’s decision to cut interest rates by 25 basis points and indicate further tightening also buoyed markets.
Analysts say the influx of ‘cheap capital’ could strengthen the bull market.
Bitcoin rose for the third day in a row to hit a new all-time high above $76,000.
Per data from CoinGecko, the flagship cryptocurrency touched highs of $76,677 across major exchanges on Nov. 7. This comes after BTC broke to a new all-time high above $75k on Nov. 5 with news of Donald Trump winning the US presidential election.
The top crypto also moved higher to break above $76k as Kamala Harris conceded defeat and as US president Joe Biden confirmed he’d hand over power to the incoming 47th president.
Bitcoin makes new ATH amid Fed interest rate cut
On Nov. 7, Bitcoin price made a new all-time high above $76.6k as the Federal Reserve announced a 25 basis points interest rate cut. The news coming on the back of Trump’s win added to the positive buzz across the risk asset markets.
Fed’s rate cut is the second one after the 50 bps cut in September. The move follows slowing inflation data and a cooler jobs market. The market is likely to rally higher given Fed’s rate cut and Chair Jerome Powell’s remarks. Is “cheap capital” set to enter the market? Investor and entrepreneur Anthony Pompliano thinks so.
BREAKING: The Federal Reserve has cut interest rates by 25 basis points.
BTC led cryptocurrencies in a brief pump, with Ethereum, Solana and BNB recording some notable gains.
ETH for instance crossed the $2,880 mark with an intraday surge from $2,717. SOL broke into the top four by market cap after surging to near $198, flipping BNB with its market cap above $92.8 billion.
Meanwhile, BNB crossed $600 for the first time since late October as it hit highs above $610. The coin’s market cap as of writing was $87.3 billion.
Bitcoin reached a high of $75,317 in the early hours of this morning
In September, Bernstein analysts predicted Bitcoin to reach between $80,000 and $90,000 by the end of 2024 if Trump won
Unity’s COO said to CoinJournal said it was “disingenuous” to say Trump winning the US election was the sole reason Bitcoin’s price went up
Bitcoin rose to a record high of over $75,000 early this morning as voting results signalled a Donald Trump win for the White House.
Data from CoinMarketCap shows Bitcoin achieved a high of $75,317 around 6:25 this morning. Before the election results started coming in last night, Bitcoin was trading at around $69,000.
However, as the evening progressed and into the early morning, Bitcoin continued an upward trajectory before reaching its new all-time high.
Bitcoin’s last all-time high took place in March when it reached $73,000.
Bitcoin’s all-time high of over $75,000. Source: Coinmarketcap
Data from AP News shows Trump has taken 277 of the electoral results compared to Vice President and presidential candidate Kamala Harris’ 224.
Will the price rise continue?
While the new high comes amid the US election results, many will be wondering whether this upward movement will continue. In September, Bernstein analysts predicted that Bitcoin could reach between $80,000 and $90,000 by the end of 2024 if Trump won the presidential election.
According to James Toldeano, COO of self-custody wallet Unity, people need to realize that data based on the 2012, 2016, and 2020 US elections doesn’t reveal consistent patterns for the crypto market concerning election results.
“Some have looked at the 2020 election and seen the price rise from $13,760 prior to the election on November 1, to $19,698 following the election on December 1, and immediately asserted it was the election that drove the increase,” said Toldeano to Coinjournal.
In reality, Toldeano added, several factors contributed to the price rise, including US stimulus payments, increasing interest from companies like MicroStrategy buying Bitcoin, and people seeing Bitcoin as a safe investment during the Covid pandemic.
“While the election happened during this time, it’s disingenuous to say it directly caused the price increase,” he said.
In the long-term, it won’t be the election that moves the crypto market, but “broader macroeconomic events, technological advancements, shifting market sentiment, and factors outside of the next President’s control,” Toldeano explained.
Pro-crypto
Former US President Donald Trump has come across as more crypto-friendly compared to Harris.
In September, Trump became the first US president to use the Bitcoin network. He achieved this after sending a Bitcoin transaction at PubKey, a crypto-themed bar in New York ahead of his campaign rally in Long Island.
On the flip side, Harris has been muted about her stance on crypto despite saying her administration would support a crypto regulatory framework if she became the next US president.
“Incoming President Trump has the power to save crypto in the US where urgent change is needed,” said Jesper Johansen, CEO and founder of Northstake, an Ethereum staking marketplace, to Coinjournal.
“First amongst the new administration’s priorities should be to define staking as an opportunity for US investors,” Johansen continued. “The question still lingers: is staking a commodity or a security?”
Johansen said that $6 billion is sitting in Ethereum exchange-traded funds (ETFs), which aren’t being staked, meaning investors are missing out on economic opportunities. According to Johansen, this could be one of the reasons why the uptake of Ethereum ETFs hasn’t been as popular as Bitcoin ETFs.
“Once these core issues have been solved, changes are needed within the SEC to ensure that crypto is viewed as a vehicle of innovation, rather than something to be feared,” he added.
Ahead of the election, Trump said he’d remove Gary Gensler, chair of the US Securities and Exchange Commission (SEC); however, it remains to be seen whether this will happen because the SEC is an independent federal agency.
At the time of publishing, Bitcoin is trading at around $74,000.
Bitcoin spiked to above $75,400, a new all-time high.
This came as Donald Trump clinched the US presidency, beating Kamala Harris.
Bitcoin rose to new all-time high above $75,000 as world leaders began to congratulate Donald Trump as the winner and president-elect in the 2024 US election.
As Trump took a decisive lead with key wins in Pennsylvania, Georgia and North Carolina, pushing his Electoral College votes past the 270 mark, Bitcoin price rocketed past $75k to hit a new all-time high above$75,400.
The flagship cryptocurrency has since retraced below $74k, but its sharp surge had over half a billion dollars liquidated. Per Coinglass, 124,734 traders saw their positions liquidated in the past 24 hours, with total liquidations at more than $557 million.
BTC liquidations stood at over $273 million, with more than 70% of that – $211 million – in shorts. Crypto is overall extremely bullish on a Trump presidency and analysts say dips in coming months will offer buy opportunities.
Trump’s pro-crypto stance
As the election cycle slowly comes to an end, key to the crypto industry is that the most “pro-crypto” candidate has won. World leaders, including Israeli Prime Minister Benjamin Netanyahu, India’s Narendra Modi and El Salvador President Nayib Bukele, have all congratulated Trump on his victory.
Dear Donald and Melania Trump,
Congratulations on history’s greatest comeback!
Your historic return to the White House offers a new beginning for America and a powerful recommitment to the great alliance between Israel and America.
— Benjamin Netanyahu – בנימין נתניהו (@netanyahu) November 6, 2024
The US president-elect has also given a victory speech.
But while the market celebrates, what remains to be seen is whether he keeps the pledges he made during the campaign. These include two pledges for “day one” in office: fire US Securities and Exchange Commission Chair Gary Gensler and commute the sentence of Ross Ulbright.
Last night, Donald Trump pledged to commute my sentence on day 1, if reelected. Thank you. Thank you. Thank you.
After 11 years in prison, it is hard to express how I feel at this moment. It is thanks to your undying support that I may get a second chance.
He also said he’d make the US the world’s BTC mining hub, support a strategic Bitcoin reserve effort and never allow the creation of a central bank digital currency (CBDC).
Despite these pledges, industry experts say a Trump White House will be more supportive of crypto in general. The number of pro-crypto Senate and House Representaives has also increased significantly to suggest the road to regulatory clarity has likely opened up.
Bitcoin’s value has risen over 400% between 2020 and 2024
Solana has increased in value by nearly 4,500% from $1.49 to around $166 in four years
This trajectory of positivity will continue beyond the 2024 US elections, according to Matt Hougan
Bitwise’s CIO has said while Washington can alter the trajectory of the crypto market by speeding things up or slowing them down, it can’t stop it.
In his latest client memo, Matt Hougan wrote about crypto in an election year, claiming that crypto has already won, regardless of who becomes the next President of the United States.
Comparing the state of the crypto market from November 2020 to November 2024, Hougan questioned whether things are better or worse since the last time Americans went to the polls.
Despite several lawsuits from the US Securities and Exchange Commission (SEC) – notably against Binance, Coinbase, Cumberland DRW, Kraken, and Ripple – the crypto industry has made significant progress.
A four-year difference
Looking between the two US elections, Hougan points out that Bitcoin was trading at $13,677 in November 2020. Fast-forward to November 2024 and Bitcoin is valued at around $69,492, indicating a 408% change.
Ethereum has also seen a positive increase from its humble $388 in 2020 to its now $2,492 in the runup to the 2024 US election. However, it’s Solana that has seen a major increase in price rising nearly 11,000% from $1.49 in 2020 to around $166 in 2024.
Turning to assets under management (AUM), Hougan shows that stablecoin AUM rose from $3.87 billion in November 2020 to $177.83 billion in November 2024, representing a near 4,500% change.
Decentralized finance (DeFi) total value locked (TVL) also experienced a healthy boost, jumping from $9.57 billion in 2020 to $139.3 billion in 2024.
“We focus so much in crypto on the moment-by-moment movement of prices that we often lose sight of the long-term trends,” Hougan wrote. “The presidential election provides a nice opportunity to step back and see how far we’ve come.”
What next?
So much has already happened in the crypto market over four years, but will that continue as the market goes beyond the 2024 US election?
In Hougan’s view, the answer is yes. Regardless of who becomes the next POTUS, Hougan said – among other things – that spot crypto exchange-traded funds (ETFs) inflows will continue, stablecoins will continue to grow, Wall Street will continue to embrace tokenization and real-world assets, blockchains will get faster and cheaper, and real-world applications such as Polymarket will gain mainstream adoption.
“What happens in Tuesday’s election matters, particularly in the short term,” said Hougan. “But as I see it, over the long term Tuesday will prove to be something between a speed bump and a wind gust. Neither is going to stop this train.”
Mt. Gox moved 32,371 Bitcoin to two wallets, amounting to $2.19 billion
The movement follows the transfer of 500 Bitcoin worth more than $35 million
In October, Mt. Gox announced it was pushing its repayment deadline to October 31, 2025
Defunct crypto exchange Mt. Gox has moved another $2.19 billion to two unmarked wallets, according to data from blockchain analytics firm Arkham Intelligence.
Of the $2.19 billion, 30,371 Bitcoin was transferred to wallet 1FG2C…Rveoy. The extra 2,000 Bitcoin was sent to a cold wallet before being transferred to wallet 15gNRV…Aok. According to data from Arkham, the movement of Bitcoin comes five days after the exchange moved 500 Bitcoin worth over $35 million.
It’s one of the largest movements the exchange has made this year. In May, it was reported that Mt. Gox had transferred over $9 billion worth of Bitcoin to a new wallet. In July, the platform moved a further $2.8 billion. In both of these instances, it was thought Mt Gox’s trustee was preparing for repayment to creditors.
It may be that this further movement of Bitcoin is related to repaying creditors, something they have been waiting for since a hack caused the exchange to collapse in 2014. In October, Mt. Gox pushed its repayment deadline to October 31, 2025, adding another year from its original date.
Last month, Mt. Gox said the extended deadline was down to two things: creditors not completing the repayment steps and issues arising from the repayment process.
