UNDATED (WKRC) – Bitcoin soared to a record high due to a rush of so-called “Trump trades.”
According to Business Insider,Bitcoin climbed past $75,000 as former President Donald Trump took the lead in Tuesday’s United States presidential election.
The outlet reported that Trump’s lead prompted a rush of “Trump trades,” with investors betting on assets that are expected to see gains under a second Trump presidency.
Cryptocurrencies are among the winning trades. Business Insider stated Trump has become a vocal supporter of digital assets in recent years, with market strategist Yeap Jun Rong writing on election night that the former president’s pro-stance stance was helping to push bitcoin to a record high.
Business Insider reported that Bitcoin peaked at over $75,000 Tuesday.
Kyle Rodda, a senior market analyst at Capital.com, said that a Trump presidency was associated with the following factors that could help raise the value of Bitcoin, per Business Insider:
- A deeper deficit
- A higher level of debt
- Tax cuts
- Treasury issuance
- Higher inflation
Among other cryptocurrencies that saw growth were meme coin dogecoin, which rose 21%, and Ethereum, which was up 7.44%, per the outlet.
Trump called Bitcoin a “scam” back in 2021, but now owns over $1 million in Ethereum, according to Business Insider, citing information from the former president’s financial disclosure from the summer.
“The greater inflationary risks and higher levels of debt also support assets like gold and bitcoin, which investors buy to hedge themselves against such trends,” Rodda wrote, per Business Insider.
Bernstein analyst Gautam Chhugani told the outlet in September that Bitcoin could hit $90,000 by December if Trump won the election.
