Bitcoin markets rallied sharply today, sending the world’s most popular digital currency to a fresh, all-time high after Donald Trump won a second bid for president of the United States.
The cryptocurrency climbed to roughly $76,500 this afternoon, according to Coinbase data provided by TradingView.
When asked to explain what fueled these latest gains, several experts cited Trump’s reelection.
Tim Enneking, managing partner of Psalion, was of this frame of mind, offering his input on the situation via email.
“Rarely in any type of public market is there such a clear cause and effect as in the Bitcoin market (and, to a lesser degree, crypto markets in general) and the US presidential election over the past 24 hours,” he stated earlier today.
“Beginning late yesterday, every addition to the electoral college totals moved the BTC price: Trump gains some votes, BTC rises; Harris gains some votes, BTC falls. Again, rarely is a correlation so clear and so strong,” Enneking noted.
Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management, offered a similar take, indicating via emailed comments that “These gains in Bitcoin can be attributed to Donald Trump winning the U.S. presidential election.”
“While most market participants viewed this election as a win/win, despite the outcome, it’s clear that the incoming president is keen on helping America become a crypto powerhouse,” he stated, emphasizing the incoming president’s enthusiasm for this particular industry.
“Trump has been seen as a pro-crypto enthusiast that will help craft regulation to solidify Bitcoin’s place in financial markets,” Sifling continued.
“From Trump’s NFT drop to launching his own coin, it’s clear that he is fond of blockchain technology and wants Bitcoin to have a place within our financial ecosystem,” he stated.
Going forward, more than one market observer weighed in on where they expect bitcoin prices to go.
Alice Liu, head of research at CoinMarketCap, provided a bullish take.
“Market analysts are optimistic, predicting that Bitcoin prices could soar to $80,000 or even $90,000 on the heels of this Trump victory,” she stated via email.
“This bullish sentiment reflects growing confidence in a pro-crypto environment,” Liu added.
Greg Magadini, director of derivatives for digital asset data provider Amberdata, also offered her perspective on the situation.
“Looking at dealer positioning for options on Deribit, we see the market is heavily positioned for Bitcoin to settle between $80k-$90k by EOY,” he stated, referencing data from the crypto derivatives trading platform.
“The option market is pricing in only a 7% chance of being above $100,000 by the EOY,” Magadini added.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.
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