Bitcoin hit a record high on Wednesday morning as Donald Trump looked increasingly likely to reach the White House.
The cryptocurrency hit a new high of $75,273.47, surpassing the $75,000 mark for the first time Trump took the lead in the presidential race.
With Trump’s victory confirmed, bitcoin has retreated from its peak, but was trading up more than 6.31 percent at $73,759.29 as of midday Wednesday.
New President: Donald Trump claimed victory in the US elections and promised to reduce regulation in the crypto space
The coin has largely been trading below the $70,000 mark so far this year, having last fallen below this point in June before posting sufficiently large gains last week.
Donald Trump has long supported a decentralized approach to cryptocurrencies, meaning fewer restrictions on the market.
As a result, cryptocurrency investors are hopeful for a new policy favorable to the crypto space.
Trump Leap: Bitcoin Hit New High in Early Morning Hours, Breaking $75,000 Mark
Simon Peters, market analyst at Etoro, told This is Money: “Although both candidates expressed support for the American crypto industry, Trump was more vocal and convincing during his campaign, even going so far as to headline Bitcoin 2024 in July, becoming the first The current or former US president will speak at a cryptocurrency conference.
“With a ‘clean’ presidency and Congress, the initiatives proposed by Trump during his campaign to boost the US crypto industry could face fewer obstacles and be much easier to push forward.”
One of those initiatives is to fire cryptocurrency regulator Gary Gensler, something Trump promised to do “on day one” of his presidency.
This, according to Glen Goodman, author of The cryptocurrency trader“brought the audience to their feet, cheering and applauding.”
Goodman told This is Money: ‘Gary Gensler has been the bane of cryptocurrency companies in the United States and around the world, bringing court cases against some of the largest 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 skyrocketed today.”
The rise in bitcoin’s value comes as part of the “Trump trade,” in which investors flock to assets that are expected to perform well under the Trump presidency.
Other cryptocurrencies also increased in value, with ethereum up 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 was up 31 percent in premarket trading following the election result, while Elon Musk’s Tesla was up 13 percent.
As Bitcoin has hit a new high, experts say it could be on track to break more limits in the coming weeks and months.
Joel Kruger, market strategist at LMAX Group, said: ‘Bitcoin has officially reached a new record high, surpassing the next major psychological barrier at $75,000.
‘Based on our technical knowledge, this now opens the door to a push to $100,000 in the coming weeks.
“This will likely set the stage for an impressive wave of bullish momentum for crypto assets towards the end of the year.”
Echoing this, Peters added: “With the previous all-time high now broken, the price of bitcoin is now in price discovery and no one knows where we will see a peak.”
Peters said the Federal Reserve’s upcoming interest rate decision could also boost cryptocurrencies in cases of the expected 25 basis point rate cut.
Is now the right time to buy bitcoins?
With Trump in the White House, the outlook for cryptocurrencies appears brighter than in recent years.
Peters suggests that even though prices are 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 known. Historically, prices have gone parabolic afterwards.
‘One such proposal that could act as a huge tailwind for the price of bitcoin is if the United States adopts bitcoin as a strategic reserve asset.
“With a limited supply of bitcoins available to purchase, other countries and nations may also adopt their own bitcoin treasury strategy early for fear of missing out.”
In addition to this, inflation rates in developed countries are starting to fall to target levels, which could provide a positive environment for the cryptocurrency market.
Goodman said: “So far, the price of Bitcoin has moved in four-year cycles and we are now entering the third year where the price tends to skyrocket.” With Trump’s election, all the pieces are in place for a big rally in the coming months.
‘Of course, nothing is inevitable and once the honeymoon is over, if Trump’s crypto policies prove disappointing, an upward price movement is not guaranteed. But so far everything looks promising.’
Since investing in cryptocurrencies is considered high risk, Peters says investors should only commit what they can afford, and keep crypto assets only a small part 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 – eliminates some of the opportunity risk and perhaps be a better approach. to invest.’
Some links in this article may be affiliate links. If you click on them, we may earn a small commission. That helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.