Bitcoin has soared to a new record high as traders bet on victory for Donald Trump in the US presidential race, with the tycoon seen as the pro-crypto candidate.
The digital currency hit as much as $75,005.08 on Wednesday morning, topping its previous all-time peak of $73,797.98 in March.
“The price of bitcoin has closely followed Trump’s position in the polls and on betting markets,” Russ Mould, an analyst at AJ Bell, said ahead of Tuesday’s US election. Investors were “potentially taking the view that a Republican victory would lead to a surge in demand for the digital currency”, he added.
During his presidency Trump referred to cryptocurrencies as a scam, but has since radically changed his position, even launching his own platform for the unit.
“A Trump victory could be the catalyst that pushes the world’s first and largest cryptocurrency into uncharted territory,” said Nigel Green of deVere, also before the vote.
“His return to office would likely have a renewed emphasis on deregulation, tax incentives and economic policies favourable to alternative investments, such as Bitcoin,” Green added.
The election night bump in bitcoin and other cryptocurrency tokens is a sign that the industry “is gaining confidence by the minute . . . that it’s going to face a neutral or even positive regulatory environment”, said Matt Hougan, chief investment officer of Bitwise, a cryptocurrency fund manager.
Crypto miners’ stocks also surged on the prospect of a Trump win, with the Republican candidate having previously vowed to ensure bitcoin mining takes place in the US.
The previous Trump term saw corporate tax cuts that brought more liquidity to markets, encouraging investment into high-growth assets such as cryptocurrency.
Trump announced in September that he, along with his sons and entrepreneurs, would launch a digital currency platform named World Liberty Financial.
[Source: TheGuardian]
