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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
11/07/2024

Election Night: Crypto Assets Take Off

As election results were confirmed across U.S. states, Trump's victory became a certainty. As a president with a strong affinity for crypto, his pro-crypto stance has fueled market growth. Bitcoin — a cornerstone of his future crypto strategy — officially broke through its all-time high. In this article, we look back at how related assets moved before and after the election. Crypto

Election Night: Crypto Assets Take Off

As election results were confirmed across U.S. states, Trump's victory became a certainty. As a president with a strong affinity for crypto, his pro-crypto stance has fueled market growth. Bitcoin — a cornerstone of his future crypto strategy — officially broke through its all-time high. In this article, we look back at how related assets moved before and after the election.

Cryptocurrency

In just two days, Trump's victory pushed total crypto market cap up 12%, from $2.3 trillion to $2.63 trillion, reflecting his outsized political influence on the industry.

For crypto assets, the "Trump trade" effect played out clearly in real-time market responses. Bitcoin, the centerpiece of his strategy and the leader of the crypto market, saw notable moves both before and after the election. At 8:00 AM yesterday, Bitcoin kicked off a rally from $69,000 and briefly surpassed its previous all-time high, reaching $76,200.

Ethereum climbed steadily from $2,620 yesterday and surged to $2,800 today. The ETH/BTC pair also recovered from its historic low of 0.034 to 0.0377. As the second-largest asset in the crypto market, Ethereum posted gains but lagged Bitcoin slightly.

On the meme coin front, DOGE — one of Elon Musk's favorites — started at $0.17 and peaked around $0.22 yesterday. Another popular meme coin, PEPE, hit a high of $0.00001.

Solana surged strongly from $166 to a new high of $189.

In DeFi, AAVE climbed from $135 to a high of $190, while ENA also broke above $0.50 after rising from $0.35.

Crypto-Related Stocks

The impact of Trump's policies has begun showing up in the markets. Crypto-related stocks and ETFs listed on U.S. exchanges are clearly reacting positively to the anticipated growth of the crypto market.

In the exchange sector, major regulated exchanges posted strong gains: Coinbase rose 31.11%, Robinhood climbed more than 19.6%. In mining, buoyed by Trump's support for Bitcoin mining in the U.S., Cipher Mining surged more than 31%, Riot Platforms gained more than 26.1%, and Canaan Technology ADR rose approximately 13%. On the ETF side, leveraged Bitcoin ETFs gained more than 19.7%, the Ethereum ETF ETHV rose more than 11.4%, and the Bitcoin ETF BITB gained approximately 9.9%. "Bitcoin whale" MicroStrategy (MSTR) rose approximately 13.2%.

Outlook

Some traders argue that, given Trump's high-tariff policies, China's potential response — through looser domestic policies — could trigger asset volatility, particularly affecting the strength of the U.S. dollar and Treasury yields, which in turn would ripple into the crypto market.

Markets are pricing in a 25-basis-point Fed rate cut this month, and traders are watching closely for the Fed's next moves. Concerns that hawkish policy signals could dampen market enthusiasm have left the outlook for crypto assets uncertain. In a Wednesday report, Singapore-based crypto asset manager QCP stated: "Although the likelihood of rate cuts could be reduced by Trump's more crypto-friendly policies, markets still expect 1.8 rate cuts this year and three more next year."

Overall, the rally in crypto assets clearly reflects market expectations of a potentially looser policy environment following Trump's win. Capital — driven by the need to hedge against underlying risks — has already priced these positive effects into market valuations. If U.S. policy can strike a balance between regulation and innovation, it would drive broader adoption and legitimization of crypto assets, especially Bitcoin, which is viewed as a safe-haven asset with steady growth potential. Over the long term, crypto asset price trends will remain tied to the degree of market adoption, policy support, and global capital flows. Policy clarity and sustainability will be the critical factors for investors to rebuild confidence in the period ahead.

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