Bitcoin surge as investors bet on Trump victory

The price of bitcoin topped $72,000 on Tuesday as investors bet on the outcome of the US presidential election.
The digital currency rose 3.9 per cent to trade at a six-month high of $72,784.40 in New York on Tuesday, moving closer to the record high of nearly $74,000 set in March.
Bitcoin is seen as a so-called “Trump trade” because the Republican presidential candidate has pledged to make America “the bitcoin superpower of the world” if he is again elected president.
While polls show Trump is neck and neck with Kamala Harris, the Democratic nominee, markets are betting on a Trump victory.
Trump, who once called bitcoin a “scam”, has attempted to woo cryptocurrency investors during the presidential campaign and has pledged to fire Gary Gensler, chairman of the US Securities and Exchange Commission, who has sought to clamp down on digital currency fraud.
Bitcoin advocates believe that the cryptocurrency is protected from inflation because only 21 million bitcoins can be created and more than 19 million are already in circulation.
A Trump presidency is seen as likely to be inflationary because he plans to impose tariffs on foreign goods. He has suggested implementing a 20 per cent tariff on goods from all countries and a higher 60 per cent rate on Chinese imports. Trump has denied that universal tariffs would be inflationary.
Harris has also said she is supportive of crypto, describing it as one of the “industries of the future” in her economic plan last month. Members of her team have contacted crypto companies with a view to improving relations with the sector.
Tony Sycamore, market analyst at IG Australia, said bitcoin was pricing in a Trump election victory. He said the currency has also been supported by reports of inflows into bitcoin exchange-traded funds, or ETFs.
Ryan Lee, chief analyst at Bitget Research, said: “Both candidates have expressed a commitment to providing clearer regulatory frameworks for digital assets and Trump, in particular, has actively sought support from the crypto community.
“This political context has further boosted positive market sentiment, adding to bitcoin’s momentum,” he added in comments reported by Barron’s.
Smaller tokens have also received a boost, including ether, which was trading up 3.9 per cent at $2,667 at midday in New York.