Bitcoin's record high amid US election: Could new policies ignite the ...

Synopsis

Bitcoin (BTC) has once again surged to new all-time highs, recently breaking the $75,000 mark for the first time in history. This rise follows the U.S. election cycle, with President Donald Trump securing a victory, sparking renewed interest in the crypto market. Bitcoin’s price rally, which saw it gain nearly 10% in a short span, has reignited discussions about its potential to reach even greater heights. Will historical trends of post-election surges hold true, potentially pushing Bitcoin to over $100k by late 2025? And with Bitcoin ETFs driving institutional interest, could we be witnessing a renewed confidence in crypto’s growth trajectory post-election under a pro-crypto administration?

Historically, US elections have acted as catalysts for Bitcoin price movement. Since its inception in 2009, Bitcoin price has weathered three election cycles, each followed by a notable rally. A look at these past cycles shows that Bitcoin never returned to its election-day price, with gains that—while reducing over—remain significant.

As an Indian startup founder, I view this as a pivotal moment for global crypto, with potential long-term implications for India. While Trump’s pro-crypto stance may not immediately affect India’s regulatory landscape, his policies are set to reshape global sentiment and investor behavior, eventually influencing the market. Trump’s pledge to replace SEC leadership with crypto-friendly regulators could stabilize markets by reducing regulatory uncertainty, which is critical for attracting institutional investors and boosting capital inflows worldwide, including India.

Moreover, his support for the U.S. crypto ecosystem through tax incentives makes the U.S. an attractive hub, potentially opening new funding and partnership avenues for Indian startups as investors seek international growth. If the U.S. succeeds in building a supportive regulatory framework, it could serve as a model for other nations, encouraging India and others to consider similar approaches, fostering a more vibrant crypto ecosystem domestically.

The U.S. has been a driving force behind institutional interest in Bitcoin and Ethereum ETFs. Since their launch, substantial inflows—exceeding $50 billion into Bitcoin ETFs alone—highlight the strong commitment institutions are making to the crypto market. This brings a long-term perspective and financial stability that enhances market resilience. These ETFs not only signal growing acceptance of digital assets but also encourage broader adoption, offering investors regulated avenues to engage in the crypto market.

Through all market shifts, Bitcoin has maintained its resilience and status as a store of value, appealing to those seeking a hedge against traditional market volatility. Its long-term fundamentals—scarcity, decentralization, and growing institutional adoption—have reinforced its role as a critical asset in diversified portfolios. Increasing regulatory clarity and acceptance only strengthens Bitcoin’s proposition as a long-term asset, affirming its place as ‘digital gold’ in today’s economy.

While U.S. elections may influence sentiment in the short term, investors are focused on the fundamentals driving digital assets. The traction around Bitcoin ETFs, for instance, signals strong institutional interest. This momentum sets a solid foundation for the sustained adoption of crypto assets worldwide.

(The author Sumit Gupta is co-founder of CoinDCX. Views are own)

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times

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