Trump's victory sends Bitcoin soaring to record $73K

Bitcoin has soared more than 10% in just one day, crossing the $73,000 mark for the first time in its history. The cryptocurrency’s dramatic rise comes as the market reacts to the excitement surrounding Donald Trump’s ‘likely victory’ in the 2024 US presidential election. Just hours earlier, Bitcoin was trading around $68,000, but the euphoria surrounding Trump’s position in the race has sent it to new highs.

Trump may support crypto 

Crypto enthusiasts have been closely watching the US election, with many seeing a win for Trump as a positive signal for Bitcoin and other digital assets. Throughout his campaign, Trump has positioned himself as a supporter of cryptocurrencies, a stance that has raised hopes among investors. Back in the Bitcoin 2024 conference, Trump publicly embraced digital currencies, and since then, anticipation has been building for the pro-crypto policies he might implement if he returns to office.

Trump’s stance on crypto is well-known. He has previously suggested the creation of a national Bitcoin stockpile and vowed to remove the current anti-crypto Securities and Exchange Commission (SEC) chair, Gary Gensler, on his first day back in the White House. Additionally, he has ties to the DeFi project, World Liberty Financial, which further fuels optimism for the crypto market.

With Trump’s position in the election gaining strength, many believe that a Republican sweep in both the House and Senate could pave the way for broad, pro-crypto regulations, providing clarity and stability to the industry. If the market's predictions hold, a Trump victory could usher in a new era of favourable policies for Bitcoin, sparking a fresh rally in the crypto market.

Election and market on a mirror race

In addition to the election results, Bitcoin’s recent rise also comes amid a strong macroeconomic backdrop. The US economy remains robust, with recent GDP and consumer spending data showing growth. The Federal Reserve has been gradually easing interest rates, adding to the favourable conditions for risk assets like Bitcoin.

However, it’s not just the election and economic factors at play. Bitcoin’s price movements also follow a well-known four-year cycle, linked to its “halving” event, which took place in April 2024. A halving event is a scheduled occurrence in the Bitcoin network that takes place approximately every four years, or every 210,000 blocks mined. During this event, the reward that miners receive for verifying transactions (and adding them to the blockchain) is cut in half. This reduces the rate at which new Bitcoins are created, thereby decreasing the overall supply of new bitcoins entering circulation.

This cycle often sees Bitcoin consolidate for several months after the halving before surging to new all-time highs. With the halving now more than six months in the past, the stage is set for the next big rally. If this cycle holds true, Bitcoin could well see a price surge past $100,000 before the year is out.