The cryptocurrency market experienced a dramatic surge following Donald Trump’s apparent victory in the US election, fueled by his known support for the asset class. As Trump claimed victory, Bitcoin, the leading cryptocurrency, reached an all-time high, reflecting the bullish sentiment surrounding his potential return to the White House.
The Associated Press declared Trump the winner at 2:24 a.m. ET, ending a highly charged election cycle where cryptocurrencies became a significant talking point. The news sparked a rally across the market, with Dogecoin, another popular cryptocurrency, experiencing a 14% pump. This spike is likely attributed to the expected appointment of Elon Musk as head of the Department of Government Efficiency, nicknamed ‘DOGE’ by supporters.
However, the Trump-themed Maga coin, closely associated with the “Make America Great Again” movement, saw a dip after soaring as high as 18% earlier in the night. This suggests a potential shift in investor sentiment or perhaps profit-taking after the initial surge.
Analysts are optimistic about the future of crypto under a Trump administration. Daniel Cheung, co-founder of cryptocurrency hedge fund Syncracy Capital, expects a “biblical” bull market in the coming months. He believes that Trump’s presidency would be a 4-year call option on the market, with expectations of removing current SEC Chair Gary Gensler, adopting a sandbox approach to the sector, and potentially establishing a national Bitcoin reserve. This, coupled with the anticipated influx of retail investors, could propel the asset class to new heights.
It remains to be seen how the US will navigate the rapidly evolving cryptocurrency landscape under a Trump administration. But one thing is clear – the market is watching closely, and the potential for further gains seems almost inevitable.
