(Bloomberg) — Bitcoin jumped to a record high, part of a flurry of transactions across global markets in response to Republican candidate Donald Trump’s lead over Democratic rival Kamala Harris in the U.S. presidential election.
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The largest digital asset rose as much as 9% to change hands to $74,960 at 6:36 a.m. in London on Wednesday. The last peak was reached in March, when investors were cheered by inflows into specialty US exchange-traded funds.
In battleground states, Trump held North Carolina, won in Georgia and had a more cautious advantage in other states. The counting continued, leaving a path open for Harris to close the gap in a presidential contest forever.
Bitcoin is seen by many as a so-called Trump trade, as the former president embraced digital assets during his campaign after a major push from the industry. Crypto reached the high political table by deploying a massive campaign finance war chest to further its agenda.
Trump’s promise
Trump promised to make the US the crypto capital of the planet, build a strategic Bitcoin stockpile and appoint digital asset-loving regulators. Harris took a more measured approach, promising to support a regulatory framework for the industry. In contrast, the Securities & Exchange Commission under the Biden administration carried out a crackdown through a series of enforcement actions.
“The crypto industry feels like it has been operating with one hand tied behind its back for years, and it feels like that may be coming to an end,” said Matthew Hougan, Chief Investment Officer of Bitwise Asset Management Inc. “People are starting to position themselves for the coming years in crypto.”
In Ohio, Republican car dealer and blockchain entrepreneur Bernie Moreno defeated Senate Bank Chairman Sherrod Brown. The Republicans subsequently gained control of the Senate.
The prospect of friendlier US crypto regulations led to gains in the digital asset market. Second-ranked token Ether added about 7%. Dogecoin, a favorite of the meme crowd promoted by Trump supporter Elon Musk, rose 30% at one point.
Gensler’s fate
Digital asset companies often complained that officials under President Joe Biden failed to create a clear new legal framework for the emerging market.
SEC Chairman Gary Gensler said existing rules apply and repeatedly labeled the industry as one rife with fraud and misconduct. The agency cracked down on crypto after a 2022 market crash that triggered a litany of collapses, most notably the bankruptcy of Sam Bankman-Fried’s fraudulent FTX exchange.
Assuming Trump wins, “the first test of his credibility we should pay attention to is whether he will keep his promise to fire Gensler on his first day on the job,” said Le Shi, director of Hong Kong market-making firm Auros.
Bitcoin is now up more than 78% in 2024, topping the list of assets like stocks and gold. US spot Bitcoin ETFs, from issuers such as BlackRock Inc. and Fidelity Investments, have attracted net inflows of $23.5 billion after launching at the beginning of the year – one of the most successful new ETFs in history.
Outside of crypto, U.S. stock futures, the dollar and Treasury yields have all risen — a slew of trades linked to Trump’s rising presidential prospects.
–With help from Teresa Xie.
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