Bitcoin, Dogecoin, others soar high after Donald Trump’s early lead, victory

The development shows that Donald Trump has again put his stamp on financial markets Tuesday night as the votes piled up in his favour.

BTC was up 7.5% in the past 24 hours, rising sharply in the last few hours alongside Trump’s odds on betting marketplace Polymarket. Punters have given him an 85 per cent chance of winning the United States presidency. BTC is now trading at a notable premium on crypto exchange Coinbase, indicating renewed stateside demand.

According to data shared by Coinglass, part of BTC’s spike could be attributed to a $94 million liquidation of bearish or hedged bets against the asset.

Bitcoin’s Coinbase and Dogecoin – biggest winners of Donald Trump’s lead

Bitcoin’s “Coinbase premium,” a key metric gauging stateside demand for the leading cryptocurrency, is flashing green again amid reports of an early lead for pro-crypto Republican candidate Donald Trump.

The “Coinbase Premium Index” measures the price difference for bitcoin on Coinbase. It is widely used by U.S. users and many institutional market participants, compared to the off-shore exchange Binance – the leading exchange by trading volume.

The price differential turned positive during Wednesday’s early Asian hours and jumped to 0.06, the highest since Sept. 14, according to data tracked by analytics firm CryptoQuant. 

In traditional markets, the dollar index, which tracks the greenback’s value against major fiat currencies, jumped 1.3 per cent to 104.80, reaching the highest since July 30, according to data source TradingView. The yield on U.S. 10-year Treasury note jumped 16 basis points to 4.44 per cent.

DOGE has generally risen after a renewed endorsement by technology entrepreneur Elon Musk as part of the Republican campaign. Musk has been proposing a Department of Government Efficiency (abbreviated as D.O.G.E) as an agency that will make government spending and monetary planning more effective.

The expectation among crypto traders is that a Trump victory could lead to more chatter of “DOGE,” fueling retail attention and interest in dogecoin in the future if D.O.G.E actually becomes a part of the government.

The proposed department will seek to make government spending of taxpayer money more efficient while streamlining departments that handle spending. Musk suggested the proposed department could be run similarly to a corporate company with incentives for performers and penalties for those who fail to deliver results.

Elon Musk is a long-time Dogecoin supporter and DOGE tends to surge on payments-related developments at any Musk-owned companies, such as X or Tesla.