What Happened?
The vote counting for the U.S. presidential election commenced today (6th), with seven key swing states such as Georgia, Pennsylvania, and Michigan being viewed as indicators of victory. As of the time of writing, the Republican candidate Trump is showing better performance in these swing states.
With Trump’s sweeping performance, the price of Bitcoin soared to a new high of $75,000.85 on November 6, breaking this year’s previous record of $73,679.
Trump’s potential victory has also led to a rise in Trump-themed stocks and blockchain concept stocks.
Bitcoin Surpasses $75,000 Historical High, Massive Short Positions Liquidated
During the vote counting for the U.S. presidential election, according to the Associated Press’s tally, as of 3 PM today (6th), Trump temporarily leads Kamala Harris with 247 electoral votes to 214. This has caused the cryptocurrency market to surge, with Bitcoin even briefly surpassing $75,000, marking a new high for this year.
According to CoinGlass data, this price surge led to approximately $179 million worth of Bitcoin short positions being liquidated within four hours. Traders had initially predicted that the U.S. presidential election results would lead to a drop in Bitcoin prices, but in reality, the demand for Bitcoin in the spot market is strong and growing, dealing a heavy blow to market bears.
? Short Selling: A trading strategy that attempts to profit from a decline in a stock’s price. Investors predict that the price of an asset will fall, so they borrow the asset and sell it, then buy it back at a lower price to earn the difference.
On the other hand, Dogecoin has also benefited from the impact of the election. Since early October, Dogecoin has risen 65% in the fourth quarter of this year, and in the past 24 hours, it increased by 12% under the favorable expectations of the U.S. presidential election results.
Elon Musk, known as the “Dogefather,” proposed the idea of establishing a “Department of Government Efficiency” (D.O.G.E.) in August this year, and posted on social media expressing his willingness to serve Trump, noting the department’s abbreviation as “D.O.G.E.,” sparking discussions within the community.
This has led many cryptocurrency traders to believe that if Trump is indeed elected, it seems possible that the U.S. government could establish a new department “D.O.G.E.,” further boosting the popularity of Dogecoin and the cryptocurrency market.
According to on-chain data, the number of new DOGE wallet addresses has increased by 100%, indicating that a significant amount of new capital had already flowed into DOGE before the election.
Blockchain, Trump Concept Stocks Surge, Bitcoin Could Reach $100,000 by Year-End?
Furthermore, as Trump and Kamala Harris hold different policies on various issues, the prices of many “concept stocks” have risen with the changes in the election situation.
Due to Trump’s friendly attitude towards cryptocurrencies, the cryptocurrency market has surged, and discussions around “Bitcoin concept stocks” have increased. Taiwanese blockchain concept stocks have also soared, with stocks like HannStar Board and Alchip-KY hitting the limit up during trading, while others like ASRock, Leadtek, and Biostar saw gains of 5% to 8%.
In addition to cryptocurrencies, Trump has also proposed tax cuts, manufacturing revival policies, and deregulation of financial controls. As a result, “Trump concept stocks” including steel, chemicals, financial stocks, crypto payments, and cryptocurrency mining are all expected to benefit.
CK Zheng, co-founder of ZX Squared Capital, believes that if Trump is re-elected, U.S. policies will favor the development of cryptocurrencies, thus predicting that the upward momentum of Bitcoin will continue.
Markus Thielen, head of research at 10x Research, further predicts that Bitcoin could reach a new high of $100,000 in the first quarter of 2025.
References:
cointelegraph
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cointelegraph
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cointelegraph