Bitcoin all-time high reached! But why now?

In the early morning hours, a victory for Donald Trump in the race for the White House seems almost certain. Bitcoin reacts positively, shooting to a new record high.

According to data from Coinbase, the price of the largest cryptocurrency stands at $75,410, a new all-time high. In the past 24 hours, the BTC price has risen nearly ten percent. The market capitalization of Bitcoin now stands at $1.47 trillion, maintaining BTC's position among the world's ten most valuable assets, above Meta and just below silver and Alphabet (Google).

The overall crypto market is also making huge gains, with a current total market capitalization of $2.47 trillion. The Fear & Greed Index currently stands at 54, indicating "neutral" market sentiment. The main reason for this sudden rise in prices is the U.S. election.

On crypto betting platform Polymarket, investors are currently speculating with 99 percent certainty on a victory for the 45th - and likely 47th - U.S. president. Trump made several pledges to the Bitcoin and crypto industries during his campaign, such as promoting the mining industry and possibly firing SEC Chairman Gary Gensler. Harris, on the other hand, made only vague statements.

Despite the election tension, Daniel Winklhammer, founder of the Bitcoin-only app 21bitcoin, says the outcome will ultimately have no impact on Bitcoin adoption. "None of the candidates can stop Bitcoin adoption in the long run. The Fed has started cutting interest rates, which means anyone holding U.S. dollars will pay for the mistakes - in the form of inflation.