The cryptocurrency market has reached a historic milestone, surpassing a total valuation of $3 trillion following President-elect Donald Trump’s victory in the U.S. elections. The surge, driven by Trump’s pro-crypto stance, has sent Bitcoin soaring to over $93,000 and sparked enthusiasm across the digital asset industry.
Bitcoin’s Meteoric Rise
Before the elections, Bitcoin was trading below $70,000. However, in the wake of Trump’s win, the cryptocurrency experienced a dramatic surge, climbing to $97,500 by Friday—a daily increase of 4.3%. The largest cryptocurrency hit an all-time high of $97,862 during the same day, with annual gains reaching approximately 160%.
Market data from Coinmarketcap revealed that Bitcoin’s market size now stands at $1.93 trillion, bolstering its dominance in the sector. Expectations of further growth have fueled speculation that Bitcoin could soon breach the $100,000 mark.
Altcoins and ETFs Add Momentum
Bitcoin’s rise has been mirrored by gains in several altcoins, contributing to the overall market’s bullish trend. Institutional interest is also on the rise, with Bitcoin Exchange-Traded Fund (ETF) options debuting on Nasdaq earlier this week. The first day of trading saw a volume of approximately $2 billion, underscoring strong demand.
Spot Bitcoin ETFs, approved earlier this year, have further facilitated institutional investments by enabling Bitcoin to be traded at current and predetermined prices. Experts predict that such developments will bring greater liquidity to the market.
Trump’s Crypto-Friendly Vision
Trump’s outspoken support for cryptocurrencies has been a key driver of market optimism. He has pledged to make the U.S. the “crypto capital” of the world, a sentiment that has resonated strongly with investors.
Reports of a private meeting between Trump and Coinbase CEO Brian Armstrong, as well as discussions about the acquisition of cryptocurrency platform Bakkt by Trump Media and Technology Group, have only heightened anticipation for a crypto-friendly regulatory environment.
Bora Erdamar, an economics lecturer at Istanbul’s Bahcesehir University, remarked on Trump’s constructive approach to the crypto sector. “Trump has expressed his support for Bitcoin mining and invited miners to the U.S. The SEC’s cautious stance is also expected to shift under his administration,” Erdamar told Anadolu Agency.
Market Sentiment and Volatility
The Crypto Fear and Greed Index, which measures investor sentiment, reached 90 out of 100 on Tuesday, signaling “extreme greed” among market participants. While the current climate is highly optimistic, Erdamar cautioned that market volatility remains a concern.
“Long-term investors have seen significant profits,” Erdamar said, “but caution is essential as the market remains unpredictable.”
As the crypto industry enters a new era under Trump’s leadership, the outlook is one of cautious optimism, with the promise of growth tempered by the need for vigilance in a volatile market.
