The possibility of a victory for Republican Donald Trump in the American presidential election caused the price of the digital currency to soar this Wednesday morning.
A new record for bitcoin. The cryptocurrency exceeded the $75,000 mark for the very first time this Wednesday, November 6, boosted by the prospect of regulatory relaxation favorable to digital currencies in the event of Donald Trump's victory in the American presidential election. After having exceeded its last absolute peak dating back to last March ($73,797.98), the first digital currency by capitalization climbed to $75,005 around 03:08 GMT, an increase of some 8%. It then caught its breath and was trading at $74,725 around 04:30 GMT.
The price of bitcoin soared in unison with the dollar in markets riveted to the first results of the American presidential election, including states won by Donald Trump with a margin considered sufficient to predict the outcome of the election. The Republican candidate also won a first major victory by winning the key state of North Carolina, known to be contested and highly coveted by his rival Kamala Harris.
Trump wants to make the United States the “bitcoin capital of the world”
“Bitcoin is one of the main assets at the heart of exchanges on the evening of the American election in my opinion: it is relatively liquid (easy to sell, Editor’s note) and extremely dependent on the outcome of the vote”reacted Fredrick Collins, from the VeloData platform, quoted by the Bloomberg agency. He therefore considers it very likely “that the rise in the price (of bitcoin) is closely associated with the increased prospects of a Trump victory”. The former president pledged during the campaign to make the United States “the world capital of bitcoin and cryptocurrencies”by imposing an extremely relaxed regulatory framework.
Ether – another major digital currency – was trading around 04:30 GMT on Wednesday at $2,599, up 6%. THE «memecoins»these highly volatile parody digital currencies are also experiencing a boost, like the «dogecoin» promoted by Elon Musk – American boss and fervent supporter of Donald Trump.
Singer of cryptocurrencies
“The price of bitcoin closely follows Trump's position in the polls because for investors, a Republican victory would lead to an increase in demand for the digital currency”noted before the election Russ Mould, analyst at AJ Bell. By posing as the champion of cryptocurrencies, the businessman takes the opposite view of the Biden government, considered to be in favor of strict regulation of the sector, even if Democrat Kamala Harris tried to give pledges to reassure holders of cryptocurrencies.
The “(Trump’s) return to power would likely emphasize deregulation, tax incentives and economic policies favorable to alternative investments, such as bitcoin”estimates Nigel Green, at deVere. The analyst also notes that the Republican's previous mandate “was marked by significant corporate tax cuts, which injected additional liquidity into the markets, thereby encouraging investment in high-growth assets”.
“His administration could roll back some regulatory tightening measures from the Biden era and create initiatives such as a strategic national bitcoin stockpile”promoting investment and innovation, adds John Plassard, analyst at Mirabaud.
Halving
At the start of the year, the price of bitcoin was driven by anticipation of halving, a technical event which reduces the supply of new bitcoins approximately every four years. It consists of dividing by two the reward in bitcoins granted to “minors”users who contribute to the operation of the digital token by providing their computing power.
The digital asset also owes its rise to the debut of a new investment product on the American market, an index fund (ETF) indexed to bitcoin, which allows investors to benefit from fluctuations in the price of this cryptocurrency without owning it. directly. Since their launch on January 11 in the United States, the twelve bitcoin-backed ETF funds have accumulated the equivalent of approximately $68.51 billion, or approximately 5% of bitcoins in circulation, according to the SoSoValue site.
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