Bitcoin hit an all-time high on Wednesday morning as it looked increasingly likely that Donald Trump would take over the White House.
The cryptocurrency reached a new peak of $75,273.47, rising above the $75,000 mark for the first time as Trump took the lead in the presidential race.
With Trump’s victory confirmed, bitcoin has fallen back from its peak but is trading up more than 6.31 percent to $73,759.29 as of Wednesday afternoon.
New President: Donald Trump has claimed victory in the US elections and promised to reduce regulations in the crypto space
The currency has largely traded below the $70,000 mark so far this year, having last fallen below this point in June before posting big enough gains last week.
Donald Trump has long supported a decentralized approach to cryptocurrencies, meaning fewer restrictions on the market.
As a result, crypto investors are hopeful of new policies that are beneficial to the crypto space.
Trump Jump: Bitcoin hit a new record in the early hours of the morning, passing the $75,000 mark
Simon Peters, market analyst at Etoro, told This is Money: ‘While both candidates expressed support for the US crypto industry, Trump was louder and more persuasive during his campaign. US President, current or former, to speak at a crypto conference.
“With a clean-sweep, presidency and Congress, the initiatives Trump proposed during his campaign to boost the U.S. crypto industry could face fewer obstacles and be passed through much more easily.”
One of those initiatives is firing crypto regulator Gary Gensler, which Trump has promised to do “on day one” of his presidency.
This is what Glen Goodman, author of The crypto trader‘brought the audience to their feet cheering and clapping.’
Goodman told This is Money: “Gary Gensler has been the bane of crypto companies in America and around the world, filing lawsuits against some of the biggest companies in the industry such as Coinbase.
“So firing Gary Gensler is number one on the crypto community’s wish list. And that is one of the main reasons why the price of Bitcoin has soared today.”
The rise in bitcoin’s value comes as part of the “Trump trade,” with investors flocking to assets expected to perform well under Trump’s presidency.
Other cryptocurrencies also rose in value, with ethereum rising 8 percent and dogecoin up 18 percent.
Publicly traded crypto mining companies and crypto proxies have posted gains.
Bitcoin development company MicroStrategy is up nearly nine percent in pre-market trading.
Similarly, Trump Media rose 31 percent in pre-market trading on the election results, while Elon Musk’s Tesla rose 13 percent.
With Bitcoin hitting a new all-time high, experts say it is on track to break further barriers in the coming weeks and months.
Joel Kruger, market strategist at LMAX Group, said: “Bitcoin has officially broken out to a new all-time high, breaking the next big psychological barrier at $75,000.
“According to our technical views, this now opens the door for a boost to $100,000 in the coming weeks.
“This will likely pave the way for an impressive wave of bullish momentum for crypto assets through the end of the year.”
Following this, Peters added: “With the previous all-time record broken, the bitcoin price is now in price discovery and where we see a peak is anyone’s guess.”
Peters said the Federal Reserve’s upcoming interest rate decision could also boost cryptocurrencies in the event of the expected 25 basis point rate cut.
Is this the right time to buy bitcoin?
With Trump in the White House, the prospects for crypto look more promising than in recent years.
Peters suggests that despite prices being at an all-time high, it could be a good time to invest in bitcoin.
He said: “Looking back at previous presidential elections, the price of bitcoin has never fallen below its election day price after the results were announced. Historically, prices have gone parabolic after that.
‘An example of such a proposal that could act as a huge boost to the bitcoin price is if the US uses bitcoin as a strategic reserve.
“With a limited supply of bitcoin available to purchase, other countries and nations may also be more likely to adopt their own bitcoin treasury strategy for fear of missing out.”
Moreover, inflation rates in developed countries are starting to fall back to target levels, which could provide a positive environment for the crypto market.
Goodman said: “Bitcoin’s price has moved in four-year cycles so far and we are now entering the third year where the price tends to skyrocket. With Trump’s election, all the pieces are set for a major rally in the coming months.
“Of course, nothing is inevitable, and once Trump’s crypto policy is over, an upward price movement is not guaranteed if Trump’s crypto policy disappoints. But so far it looks promising.”
Because crypto investments are considered high risk, Peters says investors should only invest in what they can afford, with crypto assets making up only a small portion of their portfolios.
He said: ‘Finally, rather than going ‘all in’ with a planned investment and buying at one price level, dollar-cost averaging – that is, investing small amounts at regular intervals – takes some of the the timing risk gone and perhaps a better approach. to invest.’
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