ph6 Cryptocurrency Markets, Promoted by Trump, Brace for Election Volatility

For months, cryptocurrency investors have been eagerly awaiting the presidential election, convinced that a victory for former President Donald J. Trump would be good for Bitcoin.

On the campaign trail, Mr. Trump has promoted himself as a crypto believer, raising hopes that a Republican victory on Tuesday could send the prices of digital currencies soaring. Bitcoin surged to $73,000 late last month, close to its record, after an influential crypto-powered betting market gave Mr. Trump a 67 percent chance of winning the election.

Price of Bitcoin over the past year

Data as of Nov. 4

Source: Coinmarketcap

By The New York Times

The election results are poised to cause more volatility. Over the past week, Bitcoin’s price fell 7 percent to roughly $68,000 as the betting odds shifted to give Mr. Trump a narrower lead over Vice President Kamala Harris. Many crypto investors are hoping the price could rebound this week.

“We expect Bitcoin to break all-time highs on a Trump win,” the investment management and research firm Bernstein said in a report on Monday, predicting that the digital currency could rise as high as $80,000 or $90,000. But if Ms. Harris wins, the report said, Bitcoin’s price could fall as low as $50,000.

The election Tuesday is easily the most important political event in crypto’s history. For the first time, the industry’s leading companies have mobilized to invest enormous sums, funding a network of super PACs that have spent tens of millions of dollars in key congressional races. The results could determine whether crypto companies flourish in the United States, or end up decamping to other countries in the face of a regulatory crackdown in Washington.

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