Crypto Market Soars as Trump’s Election Win Fuels Optimism
The cryptocurrency market is on fire, with bitcoin reaching new heights and other coins following suit. On Monday, bitcoin surged 3.6% to $82,171, according to Coin Metrics, after breaking the $80,000 barrier for the first time on Sunday. Ether, the decentralized finance token tied to Cardano, and payments coin XRP also saw significant gains, while memecoins dogecoin and Shiba Inu coin continued their upward trend.
Trump’s Crypto-Friendly Stance Sparks Euphoria
Susannah Streeter, head of money and markets at Hargreaves Lansdown, attributes the crypto rally to the “euphoria” sparked by Trump’s presidential win. The former president’s pledge to support the crypto industry and turn the U.S. into the “crypto capital of the world” has sent bitcoin to fresh heights. Streeter notes that bitcoin speculators are betting on a more favorable regulatory environment, with expectations of a reserve crypto fund that would boost ongoing demand.
Campaign Promises Fuel Crypto Optimism
On the campaign trail, Trump made several promises to the crypto industry, including making the U.S. the “crypto capital of the planet” and insisting that all bitcoin should be mined in the country. He also vowed to unseat U.S. Securities and Exchange Commission Chairman Gary Gensler, who has taken a tough stance on crypto.
Citi Strategists Weigh In
Citi strategists, led by David Glass, highlighted that crypto had been one of the “few Trump trades that has yet to retrace.” They noted that the anticipated cryptofriendly nature of Trump’s administration has led to regulatory clarity hopes in the U.S. Since the election, spot crypto ETFs have seen some of their largest-ever inflows, with net inflows for BTC and ETH ETFs reaching $2.01bn and $132mn, respectively.
Looking Ahead: Will Crypto Continue to Rise?
Some analysts expect crypto to continue its upward trend, with a number predicting that bitcoin will hit the $100,000 milestone by the end of the year. With Trump’s crypto-friendly stance fueling optimism, it remains to be seen whether the market can sustain its momentum. One thing is certain, however: the crypto market is on fire, and investors are taking notice.
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