By Key Points
- Bitcoin climbs over 3% on Election Day amid US presidential voting.
- Investors see Trump as more favorable to crypto than Kamala Harris.
- Dogecoin surges 18%, boosted by Elon Musk’s pro-DOGE government remark.
- Altcoins trail Bitcoin’s gains, with meme coins showing the most strength.
As the US presidential election unfolded on Tuesday, Bitcoin climbs over 3%, bringing excitement to the cryptocurrency market. Trading at around $70,077, Bitcoin’s momentum highlights the ongoing influence of geopolitical events on digital assets.
The world’s largest cryptocurrency even spiked to $70,291 earlier, edging closer to its all-time high of $73,800 seen in March. The surge comes as investors predict a more crypto-friendly future under Donald Trump compared to Kamala Harris.
Bitcoin has already gained more than 65% this year, showcasing its resilience and appeal as a hedge against traditional market volatility. The crypto community is buzzing, with many emphasizing the policy divide between Trump and Harris.
Trump, known for his pro-crypto rhetoric, has expressed intentions to foster digital asset growth. In contrast, Harris has promised to implement a comprehensive regulatory framework, which could impose stricter guidelines on crypto businesses.
The more good news comes in for Trump the more Bitcoin pumps$BTC is up 3% in the past 1 hour after they announced Trump winning some states pic.twitter.com/V788jM1XBD
— Emmanuel Essien I. (@mvnnyessien) November 6, 2024
Dogecoin Rides the Wave, Soars 18%
While Bitcoin climbs during Election Day, Dogecoin (DOGE) made a splash of its own, leaping 18%. This rally was ignited by comments from Dogecoin enthusiast and X Corp. CEO, Elon Musk.
Musk hinted at creating a Department of Government Efficiency (D.O.G.E.) if Trump wins, energizing Dogecoin supporters and reinforcing the meme coin’s appeal as a speculative asset. Trading at roughly 17 cents, Dogecoin has doubled in 2024, with Musk’s influence remaining a major driver of its market moves.
However, the broader altcoin landscape paints a different picture. While Bitcoin climbs, altcoins have struggled to outperform the leading cryptocurrency.
In prior bull markets, smaller-cap coins saw strong gains, but in 2024, only a handful of meme coins have shown significant upward momentum. This trend reflects investors’ shifting preferences, as many stick to Bitcoin as a safer, more established option amid regulatory uncertainties.
US Election Adds to Financial Market Volatility
The Bitcoin climb phenomenon is happening alongside a general uptick in US equities. The Dow Jones Industrial Average rose 382 points (0.91%), the S&P 500 added 59.65 points (1.04%), and the Nasdaq surged 232.84 points (1.28%). Positive economic data and optimism about the future are lifting investor spirits, but analysts expect further volatility as the election results come in.
Crypto advocates argue that a Trump win would catalyze a more favorable environment for Bitcoin and other digital assets. Trump has repeatedly underscored his commitment to reducing regulatory burdens, a stance that many in the crypto community welcome.
On the flip side, Harris’s regulatory framework could introduce restrictions aimed at protecting consumers and reducing market risks but might stifle innovation.
As Bitcoin climbs, the correlation between political dynamics and crypto movements becomes more evident. The market is bracing for rapid shifts, driven by the election’s outcome and potential policy changes. Regardless of who wins, Bitcoin’s status as a macroeconomic hedge and its ongoing appeal to institutional investors reinforce its position as a leading global asset.
