Bitcoin broke through $75,000 for the first time in history – the US elections triggered the growth of cryptocurrencies

The Bitcoin rate reached a new historical high, exceeding $75,000 per coin. This happened against the backdrop of investors expecting Donald Trump to win the US presidential election. At the time of writing this note, the most popular cryptocurrency in the world was trading at around $74,977 per coin (data from Binance).

Image source: EivindPedersen / Pixabay

Over the past 24 hours, the Bitcoin rate has increased by more than 9%, thanks to which the cryptocurrency was able to reach a historical high. The previous record was recorded on March 14, when the price of the world’s most popular cryptocurrency briefly rose to $73,797 per coin. Since then, the price of Bitcoin has been below $70,000 for most of the year.

The growth of the Bitcoin rate was provoked by the ongoing presidential elections in the United States. Republican candidate Donald Trump, according to media reports, is leading in them. Investors expected Bitcoin to remain volatile until the winner of the presidential election was announced. At the same time, in the event of Trump’s victory, confident growth of the digital asset was predicted, while the victory of Democratic Party candidate Kamala Harris, on the contrary, could lead to a depreciation.

Image source: binance.com

«Elections have a huge impact on cryptocurrencies. Expect Bitcoin and cryptocurrencies in general to be volatile in the coming days until we get final election results,” said Ryan Rasmussen, head of research at Bitwise Asset Management.

In the 2012, 2016, and 2020 elections, Bitcoin’s returns were approximately 87%, 44%, and 145% within 90 days of election day, respectively. This can be partly explained by the fact that the elections occurred during years of decline in the value of the most popular cryptocurrency. In addition, changes in the value of Bitcoin usually coincide with major changes in Federal Reserve policy that occur after a presidential election. This year the market expects interest rates to fall.

Analysts call this year’s US presidential election the most important in the entire history of the crypto industry. Other cryptocurrencies also showed noticeable growth: