Cryptocurrencies rose on Tuesday evening as investors watched the US presidential election results.

The price of Bitcoin was last up more than 6% at $72,031.98, just about 1% below its all-time high, according to Coin Metrics.

Exchange operator Coinbase rose 3% in after-hours trading, while Microstrategypreferred 4%.

Investors expect Bitcoin trading to be choppy until a clear winner is announced. A victory for Vice President Kamala Harris is likely to risk a downward move in the price of Bitcoin, while traders expect the price to rise in the event of a victory for former President Donald Trump.

“The election has a massive impact on crypto,” said Ryan Rasmussen, head of research at Bitwise Asset Management. “Expect Bitcoin – and cryptocurrencies more broadly – ​​to be volatile in the coming days…until we have final election results.”

“If Trump wins, I believe we will see new all-time highs,” Rasmussen added. “If Harris wins, I expect a decent short-term sell-off, with prices taking a month or two to recover. But at some point, one way or another, I think we’ll go higher.”

Bitcoin is widely expected to hit a new record high in the coming weeks. In the 2012, 2016, and 2020 elections, Bitcoin returned approximately 87%, 44%, and 145% in the 90 days following Election Day, respectively. This is partly because election years happen to coincide with Bitcoin halving years, when the supply of the cryptocurrency declines. Post-election results also tended to be consistent with major policy changes at the Federal Reserve. This year the market is looking forward to further interest rate cuts.

According to CryptoQuant, Bitcoin was trading at its fair price before Election Day at just under $70,000. That means if the election proves to be a positive catalyst in the coming days, Bitcoin can rally and is poised to set a new record, said CryptoQuant analyst Julio Moreno.

“At the moment, everyone we’ve spoken to is keeping their powder dry,” said James Davies, CEO of crypto futures and options trading platform Crypto Valley Exchange. “I have heard from numerous leading market makers and traders and can confidently say that almost everyone is ready to react. You don't even know which way the markets will move based on the outcome. There will likely be massive short-term volatility, no matter the outcome.

This year's presidential election is considered the most important in the life of the crypto industry. Many view a Harris victory as a threat to cryptocurrency, the magnitude of which has been debated this election cycle. Trump, on the other hand, is seen by many as a driving force in the industry after presenting himself as a pro-crypto candidate earlier this year and courting the industry more directly than Harris.

Many voters are concerned about the state of the federal deficit, which rose 8% to $1.8 trillion in fiscal year 2024, and the increased tax cuts promised by both candidates. Bitcoin, like gold, is seen by many investors as a hedge against the potential of fiscal and monetary policies that could combine to lower the value of the dollar and spur inflation.