Bitcoin surged above $72,00 as US voters headed to the polls in what’s shaping up to be one of the most consequential elections for the digital asset industry. The leading cryptocurrency’s price jump came as prediction markets showed Donald Trump maintaining a lead over Kamala Harris, with betting volumes approaching $4 billion across major platforms.
Market Movements
Bitcoin’s price rallied over 3% in a single hour, briefly touching $72,00 The surge was accompanied by strong performances from other digital assets, with memecoins Dogecoin (DOGE) and Shiba Inu (SHIB) posting gains of 11.2% and 8.5% respectively over the past 24 hours. Ethereum (ETH) and Solana (SOL) also saw modest increases of 1.9% and 2.6%.
The price action comes amid heightened market volatility, with Bitcoin’s volatility index reaching a three-month high of 65.7 on November 3rd. Market analysts suggest this volatility could spike further once election results are finalized, with some traders predicting price swings of at least 10% in either direction.
Election Betting Markets Heat Up
Political betting markets have seen unprecedented activity, with total trading volumes approaching $4 billion. Web3 platform Polymarket has emerged as the dominant player, accounting for over $3.3 billion in trading volume despite being restricted from serving US-based users. New regulated US platforms including Kalshi, Robinhood, and Interactive Brokers have collectively attracted over $500 million in volume since launching their election markets in October.
As of election day afternoon, prediction markets were giving Trump approximately 62% odds of winning the presidency, with Harris at around 38%. These markets have attracted attention for potentially capturing public sentiment more accurately than traditional polls.
Institutional Interest Shows Mixed Signals
Despite the market optimism, US Bitcoin ETFs recorded their second-largest daily outflow ever on election eve, with a net exodus of $541.1 million. Only BlackRock’s iShares Bitcoin Trust ETF (IBIT) bucked the trend, seeing inflows of $38.4 million. This marks a significant shift from the previous week’s strong inflows, suggesting institutional investors may be reducing exposure ahead of potential election-related volatility.
Regulatory Implications
The election outcome could have far-reaching implications for crypto regulation in the United States. Representative Tom Emmer noted that if Republicans gain control of both chambers of Congress and the White House, key legislation like the Financial Innovation and Technology for the 21st Century Act (FIT21) could see movement after the new administration takes office in January.
However, in a scenario with split control of Congress, there may be greater urgency to pass crypto legislation before year-end, potentially as part of broader financial services legislation or government funding bills.
Looking Ahead
Market analysts remain divided on the immediate impact of the election results. Bitfinex analysts suggest the current low volatility could either fuel significant price appreciation or trigger a deeper correction. Sygnum analysts predict the market will continue its upward trajectory regardless of the winner, though they note a Trump victory could lead to a more pronounced rally given current market sentiment.
With polls still open and vote counting underway, crypto markets remain on edge as participants await clarity on the future regulatory landscape for digital assets in the world’s largest economy.
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