Early election results indicating a clear advantage for Donald Trump and the Republicans have bolstered the cryptocurrency market, with Bitcoin leading the charge.
Donald Trump has positioned himself as a proponent of cryptocurrency market development, arguing that if the United States fails to adopt cryptocurrencies for everyday use, other countries will seize the advantage. The Republican Party, under Trump's leadership, opposes stringent regulation and, crucially, resists raising capital gains taxes. This stance has buoyed both the stock market and Bitcoin, with the latter already gaining over 7.5%.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appYesterday's RCP polls gave Trump a 60% chance of victory. Today, Polymarket has dramatically increased those odds to 99%. While the vote count is still ongoing, Bitcoin has demonstrated the most robust market reaction. It has surged over 7.5% today, bringing its year-to-date gains to an impressive 72%. Source: Bloomberg Finance LP, XTB
Bitcoin has breached the $75,000 threshold, setting a new all-time high. Previous peaks had fallen just short of $74,000. The cryptocurrency is currently testing the upper limit of its upward trend channel, slightly retreating from the $75,000 mark. The next significant resistance level lies at $77,000, representing a 113.0% retracement of the last downward wave.
However, analysts caution that an official Trump victory could trigger profit-taking, potentially leading to a correction. In such a scenario, initial support levels are anticipated at $74,000 and $72,000.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
