The politician has repeatedly spoken out in favor of the first cryptocurrency and mining

Bitcoin exchange rate sets new all-time high amid Trump’s victory

06.11.2024 - 13:50

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6 min

What’s new? The bitcoin exchange rate has reached a new all-time high above $75 000 on the back of Donald Trump’s victory in the US presidential election. The asset broke the previous record of $73 800 for the first time since March 13, before rising to $75 359, according to a chart from leading crypto market data aggregator CoinGecko. At the time of writing, the rate has been corrected to $74 509, but the daily growth rate is 8,4%.

CoinGecko data

What else is known? According to the Coinglass platform, positions worth $578,79 million were liquidated in the crypto market in just one day, of which $388,98 million were short positions.

At the same time, US spot exchange-traded funds (ETFs) based on bitcoin on the eve of the election faced a daily outflow of $541 million. On Election Day, November 5, the outflow totaled $116,9 million.

In turn, the Crypto Market Fear and Greed Index (F&G), which reflects traders’ sentiment, has been in the “greed” zone at 70/100 since November 5.

Throughout 2024, traders and analysts have repeatedly noted that the victory of the 45th Republican president Trump would lead to an increase in the value of the first cryptocurrency as he emphasized his positive attitude towards the blockchain industry. Trump accepted donations in cryptocurrency, spoke out about the need to make the United States a global blockchain center, create national bitcoin reserves, and support local miners.

As for Vice President and Democratic Party member Kamala Harris, she did not focus on cryptocurrencies for most of her campaign. However, closer to the election, she promised to attract investments in the crypto sector and support the creation of clear regulations in case of victory.

The positive attitude of crypto traders towards Trump is also since the administration of incumbent Democratic President Joe Biden is known for its hostility towards cryptocurrencies. Biden-appointed head of the Securities and Exchange Commission (SEC) Gary Gensler has initiated numerous lawsuits against crypto companies, including the industry’s biggest players while refusing to develop new clear rules for their operation.

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Trump was leading on Polymarket, the largest decentralized cryptocurrency prediction market, among others, with 65% of the vote in his favor at the peak, although that figure dropped closer to the election date. Trading volume related to the outcome of the event on Polymarket totaled $3,7 billion.

Lookonchain analysts reported large gains for whales who bet on Trump. Thus, Polymarket users under the nicknames Theo4, Fredi9999, and zxgngl earned $20,4, $15,6, and $11 million.

Source: X.com

It is noteworthy that earlier the Polymarket team, following an internal investigation, found out that the Theo4 and Fredi9999 accounts belong to one experienced trader from France.

Media: The share of fictitious trading on Polymarket in connection with the presidential election amounted to 30%

Media: The share of fictitious trading on Polymarket in connection with the presidential election amounted to 30%

Analysts allowed the possibility that the discrepancy in the figures is a consequence of an error in counting votes on the platform

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According to preliminary results, Trump won the votes of 279 electors, whose electoral college vote will take place on December 17. On January 6, Congress will approve the results and the inauguration will take place on January 20.

The leading US centralized crypto exchange (CEX) Coinbase CEO Brian Armstrong noted that the new composition of Congress has become the most pro-cryptocurrency in history. Thus, according to the human rights organization Stand with Crypto Alliance, at the time of writing, supporters of digital assets from both parties took 247 seats in the House of Representatives and 15 seats in the Senate. Opponents of cryptocurrencies held 113 and 10 seats, respectively.

The list of pro-cryptocurrency senators includes John Barrasso (Wyoming), Marsha Blackburn (Tennessee), Kevin Cramer (North Dakota), John Curtis (Utah), Deb Fischer (Nebraska), Rick Scott (Florida), Roger Wicker (Mississippi), as well as Ted Cruz from Texas, who opposes the Fed’s digital dollar as an instrument of financial oversight, and Kirsten Gillibrand from New York, who introduced crypto regulation legislation back in 2022.

Ohio Senator J. D. Vance will become Vice President of the United States.

At the same time, in Massachusetts, Republican and lawyer John Deaton, who acted as an attorney for fintech company Ripple in a case against the SEC, lost to Democrat Elizabeth Warren, the author of the “anti-crypto army” initiative and co-author of a bill to tighten AML regulations for crypto projects, which her Republican colleague Roger Marshall later withdrew his support.

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Overall, according to CNN’s preliminary calculations, Republicans have already taken 200 seats in the lower house of Congress with a threshold of 218 to secure a majority, while Democrats have managed to gain 172 seats. In the upper chamber, Republicans have gained 51 seats, guaranteeing themselves a majority.

According to CoinGecko, the total capitalization of the political meme token sector (PolitiFi) fell 12,4% overnight. The MAGA (TRUMP) token momentarily rose to its peak since the beginning of August ($4,63), after which it began to plummet, losing 30,5% overnight. The MAGA Hat (MAGA) token also rose to its peak in July, after which it lost 42% of its value.

A similar situation is observed with Super Trump (STRUMP), Dark MAGA (MAGA), Fight to MAGA (FIGHT), and MAGA: Fight for Trump (TRUMPCOIN) coins.

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