The digital currency Bitcoin jumped during the presidential elections amid the fears of investors from the political uncertainty in USA and the election of Donald Trump for 45th president of the United States. The exchange rate of Bitcoin rose by 4% to 737.42 USD, as the rally started with the first polls suggesting victory of Donald Trump. During the trading session, the crypto-currency reached a record high of 738.63 USD, which is the highest value during the last week.
The win of Donald Trump may lead to economic and global uncertainty and may also push the US Federal Reserve to hold off from raising interest rates next month, further fueling the alternative currencies uptrend.
Trump enclosed to winning the White House battle with a series of shock wins in key states, such as Ohio and Florida, opening a path to the White House for the political outsider and rattling world markets counting on a win by Democrat Hillary Clinton. Following the latest polls, the US dollar collapsed against the major currencies in the world and economists continue to to be afraid from possible change in the course of the US economy and monetary policy.
Another factor for the strong positions of the Bitcoin is the withdrawing of the 500 and 1000 rupee banknotes from the Indian financial system overnight. The surprise move, announced on Tuesday evening, is part of a crackdown on corruption and illegal cash holdings. The banks will be closed on Wednesday and ATM machines will not be working. As Indian customers are one of the top holders of Bitcoins in the world and the surprising move of the Indian Prime Minister increased the interest of the customers to the digital currency.