The world’s largest cryptocurrency bitcoin soared past all-time highs on Wednesday as the ‘Trump’ trade’ took flight.
Trump, who appears on the cusp of a US election victory, positioned himself as a pro-crypto candidate who will implement favourable policies for the decentralised economy.
He has also vowed to fire Gary Gensler, chair of the US Securities and Exchange Commission, who is seen as a bogeyman of sorts for the crypto industry.
Bitcoin exceeded $74,000 for the first time ever before reaching as high as $75,400 in early Wednesday trades.
The BTC/UD pair has since pared back below $73,000 at the time of writing, although bouts of volatility are likely in the following hours.
Bitcoin spikes as Trump nears election victory – Credit: tradingview.com
The dollar also rose sharply, with the US Dollar Index adding 1.5%. Trump’s policies are seen as highly inflationary, which could force the Federal Reserve to limit the extent of planned interest rate cuts.