Bitcoin sets historic record amid US elections
6 November 2024 08:54
Bitcoin, the world’s most popular cryptocurrency, has reached a new all-time high amid the interim results of the presidential race between Donald Trump and Kamala Harris. According to Bloomberg, on Wednesday night (Kyiv time), the price of bitcoin exceeded $75,000 and thus set a new historical record, reports "Komersant Ukrainian"
The sharp rise in the rate – by more than 8% – occurred after the first results of the vote count began to come in, showing Donald Trump’s lead in the key swing states of Georgia and North Carolina.
“The rise in the exchange rate is clearly due to the fact that the preliminary numbers look good for Trump,”
– commented Fredrick Collins, CEO of the VeloData crypto platform.
The cryptocurrency market is actively reacting to the political race, as the candidates have radically different views on the future of digital assets. During his campaign, Donald Trump promised to make the United States the world’s cryptocurrency capital and create a strategic bitcoin reserve. Instead, Kamala Harris, who was vice president during the tightening of crypto industry regulation, takes a more reserved stance.
In the wake of bitcoin’s growth, other cryptocurrencies have also caught up. Ethereum, the second largest cryptocurrency by capitalization, grew by 6.5%. Dogecoin, a cryptocurrency actively supported by Trump supporter Elon Musk, showed a particularly impressive jump, rising by 18%.
Traders expected significant market volatility due to the election, the results of which, according to polls, are difficult to predict. According to the options market, the expected fluctuations in the bitcoin rate the day after the vote could reach 8% in either direction, while on a normal day this figure is about 2%.
Since the beginning of 2024, bitcoin has already grown by more than 70%, outperforming traditional assets such as stocks and gold. A significant role in this growth was played by the launch of spot bitcoin ETFs, which have attracted about $23.6 billion in investments since the beginning of the year.
Representatives of the crypto industry are optimistic about the future, regardless of who wins the election. In their opinion, both candidates have a more favorable stance on cryptocurrencies than the current Joe Biden administration, under which many companies have faced tough regulatory measures from the SEC.
However, it looks very likely that Trump will win the election, so we should expect further growth in cryptocurrencies.
Bitcoin set its previous historical record in March this year, when its price broke through the $72 thousand mark.
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Bitcoin
Bitcoin is the world’s first and most popular cryptocurrency, which appeared in 2009. It was created by a person or a group of people under the pseudonym Satoshi Nakamoto, who remains anonymous. Bitcoin is based on blockchain technology and has no centralized governing body.
Bitcoin is “mined” using a special mining technology, which is a digital analogy to the mining of physical minerals. Similarly to physical minerals, the number of Bitcoins is limited – there are only 21 million tokens in existence. So far, 19 million tokens have been mined, which is more than 90% of all “deposits”. That is why mining is becoming increasingly difficult and expensive.
Bitcoin, like anything else in the world, can be exchanged for anything else, including traditional currencies. The value of Bitcoin shows the level of trust in it.
Bitcoin is considered to be a secure and well-protected currency with a very high level of confidentiality. In the Bitcoin system, all information about transactions is open, but information about owners is completely anonymous. That is why Bitcoin, like some other cryptocurrencies, is popular among Ukrainian corrupt officials.
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