Bitcoin Surges to New High on Hopes of Pro-Crypto Regulations

Bitcoin’s price soared to a historic high of $75,071 on Wednesday as early results in the 2024 U.S. presidential election showed Donald Trump taking the lead. With his pro-crypto stance, Trump’s potential win has fuelled optimism for favourable cryptocurrency regulations, driving Bitcoin up nearly 10%.

Other Cryptocurrencies Rally Alongside Bitcoin

The rally wasn’t limited to Bitcoin. Ethereum (ETH), the second-largest cryptocurrency, jumped by 9.1%, reaching $2,622.90. Meme favourite Dogecoin also spiked by 23%, following speculation that Elon Musk mentioned the token during recent Trump campaign events.

Key Election Updates: Trump Gains in Swing States

The positive momentum in crypto coincided with Trump’s strong performance in key swing states. By early Wednesday, Trump held 247 electoral votes compared to Kamala Harris’s 210, with victories in battleground states like North Carolina and Georgia. He also led in Pennsylvania, Arizona, Nevada, and Wisconsin.

Republicans Set to Sweep Congress, Clearing Path for Pro-Crypto Policies

Along with Trump’s lead, the Republican Party appears poised to secure a majority in both the Senate and the House. A Republican-controlled Congress would create a smoother path for Trump’s policy agenda, with potential implications for crypto regulation and market dynamics. Trump has signalled his support for crypto-friendly policies, which could stimulate further growth in the industry.

Strong Dollar and Fed Rate Cut Speculation

Despite a recent dollar rally, which reached a four-month high, Bitcoin has remained resilient. Investors are also anticipating the Federal Reserve’s upcoming meeting, where a 0.25% rate cut is widely expected. However, with Trump’s possible win, the longer-term outlook for interest rates may shift, making the Fed’s future decisions a crucial factor for the crypto market.

Altcoins Follow Bitcoin’s Lead, But Records Remain Unbroken

Following Bitcoin’s surge, many altcoins saw gains:

• Solana (SOL): Rose 16.8% to its highest point in over two months.
• Cardano (ADA): Increased by 10%, reaching a two-week high.
• Polygon (MATIC): Climbed 10% but remains close to lifetime lows.
• Ripple (XRP): Gained 5.8%, reaching a two-week high.

Despite these gains, most altcoins are still trading below their all-time highs.

This surge in crypto prices reflects market enthusiasm over the potential for pro-crypto policies under a Trump administration, making the 2024 election results a pivotal moment for cryptocurrency investors.

Source: (Investing.com)