Crypto Market Euphoria: Trump’s Victory Sparks Record-Breaking Rally
The digital asset industry is basking in the glory of President-elect Donald Trump’s triumph, with Bitcoin soaring past $81,000 for the first time ever. This unprecedented surge is largely attributed to Trump’s endorsement of digital assets and the prospect of a Congress featuring lawmakers who support the crypto community.
A Clean Sweep for Crypto-Friendly Candidates
Trump’s decisive victory in the presidential election has prompted widespread celebration among digital asset enthusiasts, who invested over $100 million in backing crypto-friendly candidates. The largest token, Bitcoin, climbed as much as 6.1% on Sunday and extended its gains to hit an unprecedented $81,891 on Monday.
Bullish Sentiment Lifts Smaller Coins
The optimism has also lifted smaller coins, including Dogecoin, a meme-crowd favorite promoted by Trump supporter Elon Musk. According to Le Shi, Hong Kong managing director at market-making firm Auros, “With Trump’s victory, it was only a matter of time before a run-up occurred given the perception of Trump being pro-crypto.”
Trump’s Pro-Crypto Agenda
During his campaign, Trump vowed to put the US at the center of the digital-asset industry, including creating a strategic Bitcoin stockpile and appointing regulators who support digital assets. While questions remain about the speed of implementation, jubilant traders are largely ignoring these concerns.
Broader Economic Agenda Fuels Buying Spree
Trump’s broader agenda of stimulating domestic economic growth, cutting taxes, and reducing red tape has fueled a buying spree across stocks, credit, and crypto. The S&P 500 equity index has hit its 50th record this year, while Bitcoin has added about 94% so far in 2024.
Record-Breaking ETF Inflows
The rise of Bitcoin has been helped by robust demand for dedicated US exchange-traded funds and interest-rate cuts by the Federal Reserve. The iShares Bitcoin Trust, powered by BlackRock Inc., posted a record daily net inflow of almost $1.4 billion on Thursday, according to data compiled by Bloomberg.
Institutional Investors Re-Enter the Market
“We believe a significant portion of the institutional market de-risked in the lead-up to the election and is now re-entering post Trump’s win, creating material buying pressure,” said Richard Galvin, founder of crypto-focused investment firm DACM.
A Shift in Regulatory Stance
Trump’s stance on digital assets contrasts sharply with the crackdown under President Joe Biden. Securities & Exchange Commission Chair Gary Gensler had repeatedly labeled the sector as rife with fraud and misconduct. However, with Trump’s victory, the industry is expecting a more supportive regulatory environment.
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