Bitcoin has soared to a new high as traders bet on Donald Trump’s victory in the US presidential race, with the tycoon seen as the pro-crypto candidate.
The digital currency hit $75,005.08 on Wednesday morning, surpassing its previous all-time high of $73,797.98 in March.
“The price of bitcoin has closely tracked Trump’s standing in the polls and betting markets,” said Russ Mold, an analyst at AJ Bell, ahead of Tuesday’s US election.
Investors “potentially believe that a Republican victory would lead to increased demand for the digital currency,” he added.
During his presidency, Trump referred to cryptocurrencies as a scam, but has since radically changed his position, even launching his own platform for unity.
“A Trump victory could be the catalyst that propels the world’s first and largest cryptocurrency into uncharted territory,” said deVere’s Nigel Green, also before the vote.
“His return to office would likely have a renewed emphasis on deregulation, tax incentives, and economic policies favorable to alternative investments, such as Bitcoin,” Green added.
Trump has pledged to make the United States the “bitcoin and cryptocurrency capital of the world” and put tech billionaire and right-wing conspiracy theorist Elon Musk in charge of a sweeping audit of government waste.
Trump’s previous term saw corporate tax cuts that brought more liquidity to the markets, encouraging investment in high-growth assets like cryptocurrencies.
Trump announced in September that he, along with his children and businessmen, would launch a digital currency platform called World Liberty Financial.
But it had a faltering sales launch earlier this month, with only a fraction of its tokens hitting the market finding a buyer.
World Liberty Financial allows users to lend or borrow cryptocurrencies from each other, a service already offered by many platforms, one of the best known being Aave.
Cryptocurrencies have been in the news since their creation, from their extreme volatility to the collapse of several industry giants, including the exchange platform FTX.
In the run-up to the election, Trump apparently became the first former president to use bitcoin in a purchase, as he purchased burgers at a New York City restaurant, hailing it as a “landmark transaction.”
“Who wants a hamburger?” Trump announced his fellow diners in September, days after launching his platform.
Read more of The Guardian’s 2024 US election coverage