The market has reacted optimistically to Donald Trump's U.S. election victory, pushing crypto's total market capitalization above $3.2 trillion. Investors view Trump as a pro-crypto replacement for the current administration, which is considered skeptical, at best.
While positive moves were expected regardless of who won the election, Trump's victory is viewed as being the most positive outcome. Crypto's market capitalization is the highest it has ever been, coinciding with Bitcoin's record highs, and higher even than November 2021, when capitalization reached nearly $3.1 trillion.
Cryptocurrency Rise
Cryptocurrency is a popular investment vehicle thanks to its potential for substantial daily price increases. It is also becoming increasingly widely accepted by businesses as a payment option for services and products. Modern payment gateways have seen their acceptance at e-commerce and online business websites increase, as well as in the global surge of Bitcoin casino websites.
According to crypto casino writer Gary McLellan, Bitcoin casinos are proving popular because they offer faster payouts and higher withdrawal limits than traditional online casinos while still providing access to a varied selection of games.
Investors are also taking a gamble on Bitcoin and other cryptocurrencies. BTC price was $69,000 the day before the election when polls and media claimed it was too tight to call a likely winner. However, once it became apparent that Trump had overperformed these predictions, the world's largest cryptocurrency saw its price start to rise.
One week after the election, it rose to $88,000 and on Monday it broke the $90,000 mark. Although it is expected to face a lot of resistance at the $100,000 psychological barrier, many analysts now expect it to push through this mark and go on to a price of $150,000 or more. Some optimistic supporters believe it can eventually reach a price of $1 million due to its increased scarcity and demand.
Cryptocurrency's $3.2 trillion market capitalization is impressive, but it still falls some way short of other investment markets. The NYSE, for example, has a total capitalization of $30 trillion. NASDAQ, the second largest stock exchange in the U.S., has a market capitalization of $25 trillion. The global foreign exchange market has a total market cap of $2.4 quadrillion and a daily trading volume of $7.5 trillion.
The cryptocurrency market may be some way behind, but considering Bitcoin was only launched in 2009, it has grown considerably, especially following the launch of Bitcoin and Ether ETFs. With Trump in power, many are expecting the launch of further ETFs with Solana being a favorite to have its own fund products hit the market.
The Rest Of The Market
Bitcoin isn't the only cryptocurrency to have benefited from Trump's victory. Ether's price stood at $2,500 before the election before reaching a high of $3,300 on November 12. ETH prices have corrected since, falling to $3,100, but this still represents an increase of 24% in less than a fortnight.
DOGE has seen some of the biggest increases of the largest coins. What was once considered something of a joke within cryptocurrency has seen significant support from crypto enthusiasts, including celebrity names like Snoop Dogg and, of course, Elon Musk. Musk threw his hat in Trump's election bid ring, following him on the last legs of the campaign trail.
Musk was rewarded by being made head of the new government department, The Department Of Government Efficiency, or D.O.G.E. for short, effectively giving the meme coin even more credence. Before the election, the DOGE price was $0.15. A week later it peaked at $0.39 and while it has fallen back a little to $0.37 that still represents an increase of nearly 150% since the election.
Ripple and Stellar, which are considered bridges between traditional finance and modern cryptocurrencies, were a little slower to take off after the election but have gone on to make consider gains since then.
XLM (Stellar) cost $0.091 pre-election and rose to $0.11 after a week (+21%) but is now trading at $0.25, posting an increase of 175%.
XRP (Ripple) cost $0.51 on November 4 and added 18% to its price to reach $0.6 seven days later. It is now trading at $1.15, representing a 125% increase.
Ripple and Stellar are two currencies that could benefit hugely from a second Trump presidency. Ripple has been in a years-long battle with the SEC over whether it is a security and should be legally treated as such.
SEC chair Gary Gensler is adamant that the coin owes the SEC large sums of money, despite the courts recently ruling in favor of the crypto. During Trump's election bid, he vowed to sack Gensler on day one.
His ability to do so has been questioned, but, at the very least, Gensler is highly unlikely to remain in place beyond his current tenure which expires in June 2026, and if the president-elect makes Gensler's life especially difficult, he may choose to leave office sooner, with Trump likely nominating a more crypto-friendly alternative to take the main seat.
The Crypto Election
This election was the first where cryptocurrency was really even discussed. Initially, while incumbent President Joe Biden was still competing for re-election, Trump set himself up as the crypto President to counter Biden's anti-crypto stance. He promised to make the U.S. the crypto capital of the planet and hinted at sweeping changes for the industry.
When Vice President Kamala Harris was nominated as a replacement for Joe Biden in the presidential race, her softer stance on cryptocurrency regulation was noted. She especially promised to look after the interests of investors, suggesting the first steps to better regulation could be on the cards.
However, it was Trump that found the backing of the industry with major names within the sector donating millions of dollars to his election campaign and Musk firmly taking a seat next to him. It's unclear exactly what changes he will bring, but considering the Trump family has established its own crypto lending platform and Musk's installment in a prominent position within government, it is likely that crypto will see benefits.