Bitcoin Touches Record, Crypto-Tied Stocks Surge With Trump Set to Win White House

· Investopedia

Key Takeaways

  • Bitcoin surged to a record high Wednesday, briefly topping $75,000, as Donald Trump was set to recapture the U.S. presidency. 
  • The token has since retreated off the all-time high price of $73,798 set earlier this year, but is still up some 5% over the past 24 hours.
  • Shares of other bitcoin-related companies, including cryptocurrency exchange Coinbase Global and MicroStrategy, also surged.

Bitcoin (BTCUSD) surged to a record high Wednesday, briefly topping $75,000, as Donald Trump was set to recapture the U.S. presidency. 

The token has since retreated from the previous high of $73,798 reached earlier this year, but is still up some 6% over the past 24 hours as the former president, who has billed himself as the pro-crypto candidate, closed in on a return to the White House. An estimate of the total value of the crypto market was also up 6% to $2.47 trillion.

Shares of several bitcoin-related companies, including trading app Robinhood (HOOD), soared 15%, cryptocurrency exchange Coinbase Global (COIN) surged 22% and Marathon Digital parent company MARA Holdings (MARA) jumped 14%.

Shares in Microstrategy (MSTR), a big holder of bitcoin, were 11% higher.

Bitcoin trading activity had been picking up ahead of Election Day. Since Oct. 11, spot bitcoin ETFhave received net inflows of nearly $4 billion, with only one day where money flowed out of them, according to data from Farside Investors.

Trump Turned Crypto Believer This Year

Trump, who was "not a fan" of cryptocurrencies in 2019, turned believer this year.

At a bitcoin conference in Nashville, Tennessee in July, the presidential nominee reportedly said he would make the U.S.  the “crypto capital of the planet” and create a bitcoin “strategic reserve” using the currency that the government currently holds.

The approval by the U.S. Securities and Exchange Commission of spot bitcoin ETFs earlier this year turbocharged the demand for the cryptocurrency. The move allowed everyday investors to trade bitcoin as easily as shares.

UPDATE—Nov. 6, 2024: This article has been updated to include fresh bitcoin and stock prices.

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