Bitcoin has shattered record after record, soaring in response to Donald Trump’s victory over Democratic rival Kamala Harris in the U.S. presidential election. After breaching the unprecedented $88,000 level, Bitcoin has been on a record-breaking streak ever since, setting fresh highs for eight consecutive days. Bitcoin is up +35% since Trump made his (now famous) speech at Bitcoin 2024 in Nashville just over 3 months ago. The year-to-date numbers are even more impressive – up more than 115% – Bitcoin has more than doubled its January 1st price of $42,000. Meanwhile, crypto’s total market capitalization peaked above $3.1 trillion, breaking its November 2021 record of ~$3.07 trillion.
The Trump Effect: A Boost for Bitcoin
Trump’s win has ignited a frenzy among investors seeking assets poised to benefit from his administration’s policies. The immediate reaction from markets suggest they expect Trump to follow through on his key policy objectives: extend the Tax Cuts and Jobs Act of 2017, lower business taxes, less government regulation and a more combative US trade policy. In terms of currencies, the US dollar has soared with currency markets immediately pricing in Trump’s proposal to increase trade tariffs. US equity markets have risen because investors see Trump as positive for corporate America. While traditional markets have surged, the cryptocurrency sector has emerged as an unexpected winner. Bitcoin, in particular, has thrived amid Trump’s promise to position the US as a global leader in cryptocurrency innovation—a significant shift from his previous skepticism.
In 2021, Trump referred to cryptocurrency as “a scam against the dollar,” but his stance took a sharp turn during his election campaign. The now president-elect made a surprise appearance at the Bitcoin 2024 Bitcoin Conference in Nashville. There, he made headlines by praising cryptocurrency and berating the Biden administration for its war on crypto and complete disregard to the core Bitcoin ethos” “Never sell your Bitcoin”.
Bitcoin’s Market Cap Rises to New Heights
The rally has propelled Bitcoin’s market capitalization to surpass both Meta and silver, securing its position as the seventh-largest asset by market cap globally, just behind Google. This unprecedented growth underscores the shifting sentiment around digital assets and their increasing relevance in the global financial system.
A Pro-Crypto Agenda
Trump’s pro-crypto platform starkly contrasts with the restrictive regulatory environment under the Biden administration. During his campaign, Trump vowed to dismantle “Operation Chokehold” and introduce legislation supportive of the digital asset industry. His proposed policies include creating a U.S. Bitcoin strategic reserve and removing SEC Chair Gary Gensler, whose tenure saw heightened scrutiny on crypto firms. Gensler has been accused by crypto pundits of pursuing an unfair vendetta against the entire crypto industry – stymieing their operations within the U.S. Over half of the crypto-related enforcement actions the SEC has taken since 2015 have come during Gensler’s tenure. Several individuals are reportedly being considered as potential replacements for Gensler — including SEC Commissioner Mark Uyeda, who has been an outspoken critic of Gensler’s compliance-through-enforcement approach.
By embracing cryptocurrency, Trump has not only won the support of crypto-savvy voters but also set the stage for a regulatory landscape that could spur innovation and growth in the sector.
Altcoins Join the Rally
Over the past few years, only 10-20% of the top 150 cryptocurrencies have managed to outperform Bitcoin in any given 365-day period. Additionally, the degree of outperformance has diminished, averaging around +100%. Interestingly, the market cap ranking of tokens that do surpass Bitcoin has been trending higher, typically falling within the 60-80 range. This highlights the increasingly competitive nature of the crypto market and Bitcoin’s resilience as the benchmark asset.
That being said Bitcoin’s rise has fueled a broader crypto market rally, with altcoins like Solana (SOL) and Dogecoin (DOGE) leading the charge.
Solana (SOL): The standout performer among altcoins, Solana has gained 33% in the past six days, driven by a surge in decentralized finance (DeFi) activity. The network’s Total Value Locked (TVL) climbed to $7.6 billion, a level not seen since late 2021, as key applications like Jito, Raydium, and Binance’s liquid staking service expanded their user base.
Dogecoin (DOGE): This memecoin favourite has seen an extraordinary rally, riding the wave of bullish sentiment tied to Elon Musk’s growing influence within the Trump administration. Since Trump’s election win, DOGE has skyrocketed by an impressive 157%, pushing its market capitalization to $53 billion. This remarkable milestone places Dogecoin ahead of major U.S. corporations like Ford, which has a market cap of $47 billion, showcasing the meme coin’s unexpected rise to prominence. Fueling the excitement is President-elect Donald Trump’s decision to appoint Elon Musk to a key role in his upcoming administration. Musk, alongside biotech investor Vivek Ramaswamy, will lead the newly formed “Department of Government Efficiency” (Doge), tasked with spearheading Trump’s mission to slash bureaucracy and implement cost-cutting measures. The department’s name—an intentional nod to Musk’s favorite cryptocurrency—has further cemented Dogecoin’s cultural and market relevance. The memecoin’s remarkable surge underscores the growing influence of crypto in mainstream politics and finance, with Dogecoin continuing to captivate both retail and institutional investors.
Other major altcoins, including Ethereum (ETH), Polygon (MATIC), and Avalanche (AVAX), have also posted significant gains, further buoying investor confidence in the market.
The Future of Crypto Under Trump
Trump’s victory and his administration’s pro-crypto agenda have rekindled optimism within the digital asset space. With promises of regulatory reforms and a focus on innovation, many see this as a pivotal moment for cryptocurrency adoption. As Bitcoin and altcoins continue to surge, the crypto market is entering a new era of legitimacy and mainstream acceptance.
The months ahead will reveal whether this momentum can be sustained and whether Trump’s policies will deliver on their transformative potential. For now, the cryptocurrency market is buzzing with excitement, as digital assets take center stage in shaping the future of finance.
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