Bitcoin hits record on Trump election win

Bitcoin surged to a record high of $76,475 on Wednesday before stabilising near $74,800 by Thursday morning in London, fuelled by Donald Trump’s election victory following an earlier pledge to position the US at the forefront of the digital asset industry.

This rally widened bitcoin’s performance gap to gold, which declined as investors weighed Trump’s pro-growth agenda that may drive inflation, higher Treasury yields, and a stronger dollar.

The excitement has led to record trading volumes. BlackRock’s iShares bitcoin Trust recorded a $4.1 billion trading day, with overall net inflows of $622 million into US Bitcoin ETFs, the highest since their January inception.

Bitcoin’s 60-day correlation with global equities also rose to 0.66, signalling increased alignment with broader risk assets amid Trump’s pro-business stance.

Meanwhile, bitcoin volatility expectations are easing after the election-driven rally, with a 30-day implied volatility gauge seeing its second-biggest drop.

Yet, technical indicators suggest caution as bitcoin’s rally has stretched past the upper Bollinger Band, typically followed by more modest gains over the following weeks.

Attribution: Bloomberg

Subediting: Y.Yasser