Bitcoin leaped as much as 3.9% on Wednesday as volatility fueled by US elections lifted popular cryptocurrencies.
The rally pushed the most popular digital token as high as $14,257.53 before it slightly paired those gains in the afternoon. It’s the highest levels for bitcoin since January 2018, when bitcoin tumbled from its record high of nearly $20,000.
Risk assets surged in Wednesday trading as expectations for a Blue Wave quickly gave way to the likelihood of a divided government. While the lack of a Democratic sweep sets up Congress for a prolonged stimulus deadlock, it also allays Wall Street’s fears of a corporate tax hike. Tech stocks soared, while financial and industrial names lagged the market.
Ethereum, the next largest cryptocurrency by market cap, jumped as much as 6.8% in the session, while Ripple’s XRP edged higher yet ultimately remained fluctuating near the same prices as 24 hours prior.
Bitcoin’s latest rally began in late October after PayPal announced it would soon allow users to buy, sell, and hold the cryptocurrency. Bitcoin has since surged more than 20%
The $14,000 threshold represents a key resistance level for the popular token, and crossing it adds a new achievement to its massive upswing. With bitcoin now trading above that ceiling, its final resistance level sits at $20,000, Fairlead Strategies founder Katie Stockton said in an October 21 note.
Bitcoin traded at $14,047.33 as of 1:15 p.m. ET Wednesday, up 95% year-to-date.
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