Bitcoin rallies 4% to surpass $14,000 as election volatility fuels cryptocurrency surge

• Bitcoin gained as much as 3.9% in volatile Wednesday trading as investors flocked to risk assets.
• The rally pushed prices as high as $14,257.53 before a slight retraction in the afternoon.
• The $14,000 level represented a key resistance level for the world's most popular cryptocurrency, according to technical analysts.
• Ethereum, the next largest cryptocurrency by market cap, soared as much as 6.8%.
• Watch bitcoin trade live here.

Bitcoin leaped as much as 3.9% on Wednesday as volatility fueled by US elections lifted popular cryptocurrencies.

The rally pushed the most popular digital token as high as $14,257.53 before it slightly paired those gains in the afternoon. It's the highest levels for bitcoin since January 2018, when bitcoin tumbled from its record high of nearly $20,000.

Risk assets surged in Wednesday trading as expectations for a Blue Wave quickly gave way to the likelihood of a divided government. While the lack of a Democratic sweep sets up Congress for a prolonged stimulus deadlock, it also allays Wall Street's fears of a corporate tax hike. Tech stocks soared, while financial and industrial names lagged the market.

Ethereum, the next largest cryptocurrency by market cap, jumped as much as 6.8% in the session, while Ripple's XRP edged higher yet ultimately remained fluctuating near the same prices as 24 hours prior.

Read more: Morgan Stanley breaks down why defense stocks are cheap, must-buys after the election regardless of who wins — including the top pick it expects to rally 62%

Bitcoin's latest rally began in late October after PayPal announced it would soon allow users to buy, sell, and hold the cryptocurrency. Bitcoin has since surged more than 20%

The $14,000 threshold represents a key resistance level for the popular token, and crossing it adds a new achievement to its massive upswing. With bitcoin now trading above that ceiling, its final resistance level sits at $20,000, Fairlead Strategies founder Katie Stockton said in an October 21 note.

Bitcoin traded at $14,047.33 as of 1:15 p.m. ET Wednesday, up 95% year-to-date.

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