Bitcoin Hits New All-time High Above $75k as Trump Wins U.S. Election
Donald Trump's reelection as US President boosted the surge of Bitcoin, pushing the apex coin past its previous all-time high.
Bitcoin has hit a new all-time high of $75,397, surpassing its previous record. The surge comes amid global economic factors like government stimulus and changing political sentiment such as the US Presidential election.
BTC Reacts to Trump’s Reelection
Donald Trump’s reelection as US President boosted Bitcoin’s surge, pushing the apex coin past its previous all-time high. He declared victory after winning in 267 electoral colleges against Kamala Harris’ 224.
Some traders and institutions expected the most recent uptrends and stocked up. One such is Cartwright, which announced the first Bitcoin allocation to the investment portfolio of a UK pension scheme.
Despite the price surge, Google search interest for Bitcoin remains low, contrasting with the peak of 100 reached during the 2021 bull market, which climbed to $69,000 in November.
Nonetheless, the recent surge hurts the bears as liquidations over the last 24 hours exceed $550 million. Short positions accounted for over $370 million, most of which came from shorting BTC. The derivatives market is teeming with life as 24-hour trading volume surged by 130% amidst price swings.
Propelling Factors on Bitcoin
China’s proposed $1.4 trillion fiscal stimulus package, announced on October 29, 2024, has fueled current market optimism. Officials expect to approve the plan in early November. The plan includes significant funding for local debt relief and property purchases. This liquidity injection will likely increase global risk appetite, which could boost Bitcoin’s trajectory.
The package comprises a three-year debt issuance plan totaling 6 trillion yuan, beginning in 2024. The government will allocate these funds to help local authorities manage off-balance-sheet debt burdens. Additionally, they will issue a separate 4 trillion yuan bond to enable regional governments to acquire idle land and properties over the next five years.
The scale of this stimulus package aligns with expectations voiced by financial analysts in recent weeks. While not reaching the magnitude of the 2008 “bazooka” stimulus, this move signifies a shift towards a more proactive approach by Beijing to support economic growth. This decision follows the central bank’s announcement of aggressive monetary measures in late September and the government’s indication of increased fiscal stimulus.
Furthermore, reduced tensions in the Middle East and China’s anticipated stimulus measures have instilled greater confidence in the market, contributing to Bitcoin’s recent surge.
