• Bitcoin hit a record high with Donald Trump leading in the US presidential election.

• Trump's support for digital assets is boosting investor confidence in cryptocurrencies.

• Investors were leaning into the so-called Trump trade on Tuesday night.

Bitcoin hit a record high, climbing past $75,000, as former President Donald Trump took a clear lead in the US presidential election on Tuesday night.

Trump's position in the race prompted a rush of so-called Trump trades as investors bet on assets expected to gain under another Trump term.

One of the winning trades was cryptocurrencies. Trump has supported digital assets in recent years, and Yeap Jun Rong, a market strategist at IG, wrote on election night that his pro-crypto stance was lifting bitcoin to a record high.

Bitcoin peaked at over $75,000 Tuesday night, and while it slightly pared gains, the currency was up 8% at about $74,700 as of 12:51 a.m. ET on Wednesday.

Kyle Rodda, a senior market analyst at Capital.com, described other bullish signs for bitcoin, writing in a note that a Trump presidency was also associated with tax cuts, steeper tariffs, a deeper deficit, a higher level of debt, more Treasury issuance, and higher inflation.

Other cryptocurrencies were also up, including ethereum — up 7.44% — and meme coins like dogecoin, up 21%. Trump, who in 2021 called bitcoin a "scam," owned over $1 million in ethereum, his financial disclosure this summer showed.

The US dollar is expected to rise on higher Treasury yields because higher inflation would constrain the Federal Reserve's ability to cut rates.

"The greater inflationary risks and higher levels of debt also support assets like gold and bitcoin, which investors buy to hedge themselves against such trends," Rodda wrote.

The crypto industry has been at odds with President Joe Biden's administration over regulations — though bitcoin has surged more than 100% during his term.

Crypto investors expect a friendlier reception with either Trump or Vice President Kamala Harris, the Democratic candidate, who has also embraced crypto.

Gautam Chhugani, a Bernstein analyst, said in September that bitcoin could hit $90,000 by December if Trump wins the election.

"Elections remain hard to call," Chhugani said, "but if you are long crypto here, you are likely taking a Trump trade."

Read the original article on Business Insider