The election week 2024 for Bitcoin

Bitcoin is benefitting from the outcome of 2024 presidential election in America spectacularly. Reaching all-time record high levels, with price exceeding eighty thousand dollars per coin, the flagship cryptocurrency has already entered its golden age (to paraphrase what president elect Donald Trump promised for America during his victorious speech on Wednesday, November 6th, 2024). Dollar is perceived as major beneficent of the voting results, too. However, some currencies, with Israeli Shekel among them, have actually strengthen against greenback. Here is a brief, asset-oriented story of the latest election week.

The election week

For the purpose of this post the election week of 2024 is defined as a period between Saturday, November 2nd and Friday, November 8th, 2024. This definition puts the election day (Tuesday, November 5th) in the middle and allows to trace the performance of the monitored assets just before and after the election. There were a lot of polls saying that the race will be very tight, with odds virtually eequally distributed between both competitors. On the very day of election it became gradually obvious that Donald Trump would win, making what was already dubbed as “the greatest political come back in the history of the United States”. That dynamics made November 5th a powerful turning point for the investors’ sentiment. Generally, those assets which used to grow before the voting began to fall. Those which were falling, stared to surge, including Bitcoin – the asset which leveraged most on the election outcome.

The candlestick chart for the election week shows the extraordinary performance of the Bitcoin as well as some fiat currencies eventually gaining in the election aftermath; Euro and gold price dropped; the chart adopts the relative changes of the average market price of the assets at noon 12pm for each day with November 2nd, 2024 as a reference level; data source: xe.com

Bitcoin reached its all-time record heights

Bitcoin gained almost 10% during the election week. The cryptocurrency was weak just before the election, clearly reflecting the uncertainty of the final outcome. When Donald Trump was accepted as 47th President of the United States Bitcoin got an enormous boost. One of the factors which created a huge optimism about the future of the asset was, no doubt, the support the elected president got from Elon Musk. Elon Musk is perceived as a great proponent of not only free speech and space travelling, but also cryptocurrency and digital innovation as a whole. Therefore, Trump’s victory was recognized as Musk’s victory too. Eventually, investors decided it was Bitcoin victory as well. At the end of the election week the cryptocurrency was priced at $76,000, the all-time high. Afterwards, the cryptocurrency climbed up as high as $80,000, setting the new record.

The performance of Bitcoin in 2024 election week. The chart shows relative changes of the average market price of the asset; data source: xe.com

Gold and currencies

At the beginning of the week all monitored assets (except Bitcoin) were growing. While Z?oty grew significantly (up to 1.3%), Israeli Shekel stayed virtually unchanged. Everything changed at the election day. Euro, gold, and Z?oty lost. Gold received the hardest hit, dropping by 2.5%. Euro and Z?oty lost around 1.5% and 1.2% respectively. Shekel began to rise, suggesting that new presidency would be a change in favor of Israel. Shekel was over 0.7% up, however it stayed up by +0.5% at the end of the week. In the meantime gold, Euro and Z?oty partially recovered, but only Z?oty was able to get a positive overall performance. At noon November 8th, 2024 Z?oty was worth 0.52% more than at noon November 2nd. The same figure for Shekel was 0.53%. However, Z?oty didn’t enjoy its growth for long. On November 10th its price stabilized on the lower level comparing with the end of the election week. The difference between Saturday November 2nd and Sunday November 10th was -0.2%

The performance of gold, Euro, Shekel and Z?oty in 2024 election week. The chart shows relative changes of the average market price of the assets with noon November 2nd, 2024 as a reference level; data source: xe.com

?

Polish Z?oty lost 0.2% between November 2th and November 10th, the source of the chart: xe.com

Final thoughts

No doubt, markets see the new president as a positive factor for the further development of cryptocurrency economy and growth of Bitcoin value. Partially it is related with Elon Musk’s involvement in Tump’s campaign. Additionally, there are expectations that crypto-assets will avoid strict regulations in USA. The strong Dollar indicates the positive sentiment towards American economy under 47th President leadership. Major assets like Euro lost amidst discussion about the future of trans-Atlantic military, political, and economical co-operation. The weakening of Euro and Z?oty could also suggest that the war in Ukraine is not going to end in the way favorable for European Union members. However, we don’t know how the future unwinds, until it comes.?