Crypto investors anticipate turbulent trading as Bitcoin nears $69,000 on election night.

On Tuesday evening, cryptocurrencies experienced a slight increase as investors remained uncertain about the potential outcome of the U.S. presidential election.

According to Coin Metrics, the price of was last higher by 2% at $69,105.03, which was 5% off its all-time high. Earlier, it rose as high as $70,522.84. It is currently trading near its all-time high after last week.

During regular trading hours, stocks linked to the value of cryptocurrency experienced growth. Coinbase and MicroStrategy, both known for their high beta play on the price of bitcoin, saw gains of 4% and 2%, respectively.

Bitcoin trading is expected to be volatile until a clear leader emerges, with investors anticipating a downside move if Vice President Kamala Harris wins and a price increase if former President Donald Trump does.

"Ryan Rasmussen, head of research at Bitwise Asset Management, stated that the election is significantly impacting crypto, and bitcoin and the broader crypto market are likely to experience volatility until the election results are finalized."

"If Trump wins, I believe we'll see new all-time highs, according to Rasmussen. On the other hand, if Harris wins, I expect a decent short-term sell-off, with prices taking a month or two to recover. However, eventually, either way, I think we go higher."

Bitcoin is predicted to reach a new high in the upcoming weeks. Historically, in the 90 days following election day, bitcoin has seen returns of approximately 87% in 2012, 44% in 2016, and 145% in 2020. This is due in part to the fact that election years coincide with Bitcoin halving years, when the supply of the cryptocurrency decreases. Additionally, post-election returns have been aligned with major Federal Reserve policy shifts. With the market anticipating further interest rate reductions this year, it is likely that bitcoin will continue to rise.

Bitcoin has been trading at its fair value price of $69,000, according to CryptoQuant. If the election is a positive catalyst, bitcoin can rally and potentially set a new record, said Julio Moreno, a CryptoQuant analyst.

"James Davies, CEO of Crypto Valley Exchange, stated that all individuals they have spoken to are keeping their options open. He shared that he has spoken with leading market makers and traders who are prepared to react, but they are unsure of the outcome. As a result, there will likely be significant short-term volatility in the market."