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    Bitcoin and meme coins rally as early election results favor Trump, stoking volatility in crypto markets

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    Bitcoin’s value recently spiked over 3% due to initial election results favoring Donald Trump, reaching a high of $71,500 before dipping slightly. Meme-themed cryptocurrencies Dogecoin (DOGE) and Shiba Inu (SHIB) saw larger increases of 5% and 3%, respectively. Trump’s lead in the election caused tension and some volatility in the crypto space, but volatility is expected to increase further once results are finalized. The upcoming Federal Reserve meeting could also heighten volatility, with a 94.1% chance of interest rates decreasing by an extra 25 basis points.

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    Bitcoin’s value jumped over 3% recently, hitting a high of $71,500. This happened as the markets reacted to Donald Trump’s initial lead in the US election. The value has now dropped slightly to $71,309 when last checked according to TradingView data.

    In the meantime, Dogecoin (DOGE) and Shiba Inu (SHIB), which are meme-themed cryptocurrencies, saw even great increases of 5% and 3% respectively. Ethereum (ETH) and Solana (SOL) also had value increases of 1.9% and 2.6%, CoinGecko data reveals.

    This comes as Trump, the Republican hopeful, leads Democratic candidate Kamala Harris 95 to 35 in electoral college votes. There’s more tension in the crypto space due to the election; for instance, Bitcoin (BTC) slid 2.4% to a momentary low of $68,755. DOGE and SHIB also had their own share of drawbacks, but they’re still enjoying an 11.2% and 8.5% rise over the last 24 hours according to CoinGecko.

    Elon Musk’s continued backing of Trump and his link with the meme-coin movement, which is aimed at reducing government spending, has helped DOGE’s rally. It’s predicted that after the election results are announced, we may see even higher market changes. Some believe it could lead to major moves or there could be a deeper correction in Bitcoin’s value.

    One trader suspects that Bitcoin’s value may swing roughly 10% once the election results are out. Bitcoin volatility index, which is a measure of its future volatility, reached a three-month high of 65.7 on Nov. 3, and had since dropped to 63.8 according to data from Deribit, a crypto derivatives exchange.

    Vote counting has started in eight states, with Trump currently leading Harris 23 to 3 in electoral college votes. The election results could be revealed from a few hours after polls close to a few days later. This uncertainty could serve as a catalyst for higher volatility. The US’ Federal Reserve’s meeting on Nov. 7 might increase volatility as well. Current forecasts predict a 94.1% chance that interest rates will be decreased by an additional 25 basis points.

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