Bitcoin rallied on Nov. 10 again, reaching a new all-time high of S$105,770 (US$79,790) at about 1:35pm Singapore time, surging past its previous high of S$100,186 (US$75,577) reached just four days earlier on Nov. 6.
The cryptocurrency has risen by about 107 per cent over a one-year period, going from S$54,266 this time last year to the current level.
It has not been up and up steadily as most gains, about 32 percent, were realised fairly recently in the past one month.
Bitcoin was trading in a narrow range below (S$93,075) US$70,000 for much of the year since its earlier high of S$97,355 (US$73,442) level in mid-March 2024.
Factoring in Trump lead
The price of Ethereum, another cryptocurrency, is also expected to go up in the short term.
Ethereum is currently at S$4,270 (US$3,221), up about 50 per cent the past year.
It was at S$2,827 (US$2,132) one year ago this time.
Its prices have exhibited a choppier pattern than bitcoin.
Rationale for recent price movements
Traders had anticipated bitcoin price to go up in the event of a Donald Trump win, while a risk of downside moves to bitcoin price was expected if vice president Kamala Harris won, CNBC reported.
In July 2024, Trump headlined the biggest bitcoin conference of the year in Nashville and claimed he will make the U.S. the “crypto capital of the planet and the bitcoin superpower of the world”, if returned to the White House after November’s election.
Historical data
In the 2012, 2016 and 2020 elections, bitcoin saw returns of roughly 87 per cent, 44 per cent and 145 per cent in the 90 days following election day, respectively, CNBC added.
This was attributed to election years falling on bitcoin halving years, when the supply of the cryptocurrency gets cut rather drastically.
Post-election returns have also tended to align with major Federal Reserve policy shifts, CNBC also noted.
The market is looking forward to further interest rate cuts this year.
Top photo via Unsplash
