By Emil Bjerg, journalist and editor
After a week of explosive crypto-growth following the US election, Bitcoin broke record after record. Will crypto continue its ascent following the US election?
In the days following Donald Trump’s election victory in 2024, the cryptocurrency market – most notably Bitcoin – has seen a remarkable surge. The price of Bitcoin skyrocketed to unprecedented levels, reaching an all-time high of $93,495. On election day, a Bitcoin was worth just over $68,000.
Other crypto coins have also surged dramatically. Ethereum, the second-largest cryptocurrency, has reached new highs for the year, trading above $3,000. Solana, another major cryptocurrency, has also been one of the top performers, with its price – at its peak – more than doubling in the week following the election.
Donald Trump’s Election Fuels Crypto Growth
The crypto market’s bullish response to Trump’s victory stems from his campaign promises and recent pro-cryptocurrency stance. During his campaign, Trump pledged to make the US ‘the crypto capital of the planet’. This includes ending what he has called an “anti-crypto crusade” and installing a more crypto-friendly regulatory environment.
Without specifying new legislation, Trump has created anticipation of deregulation in the crypto space. Trump has aired an idea of establishing a strategic Bitcoin reserve as well as engaging the US more proactively in Bitcoin mining. Furthermore, the president-elect has vowed to remove Securities and Exchange Commission (SEC) Chair Gary Gensler, known for his stringent stance on cryptocurrencies.
With Trump still a president-elect, he has yet to put action behind any of his words. As such, the rapid ascent of crypto is based on anticipation rather than actual policies.
Other factors are also weighing in. Blackrock’s recent institutional embrace of Bitcoin is another. Their Bitcoin adoption is part of a broader trend of major financial institutions investing billions and adding a great deal of credibility.
Will the Crypto Ascent Continue?
After the historic rise in Bitcoin’s price following Trump’s election victory, there are mixed signals about whether the crypto rally will continue. After hitting a record high this Tuesday, the price dropped slightly, only to make a strong comeback, greatly surpassing the $90,000 milestone.
Throughout 2024, investors and crypto experts have speculated whether Bitcoin will surpass $100,000 by year-end. At the current rate, that could happen within a week – although there are no guarantees that the bullmarket will continue at the same pace or even at all.
A majority of experts believe that the coin will surpass the $100,000 mark by the end of 2024, while a minority expects a bear market.
Despite the overall bullish sentiment, some experts advise caution in the short term. As always, the cryptocurrency market is volatile in the short term, with potential for both significant gains and corrections.
The Role of Crypto in the US Election
The surge in cryptocurrency prices following Trump’s election victory highlights the growing intersection between politics, technology, and finance.
Trump has previously called Bitcoin a “scam against the dollar”. In his presidential campaign, however, Trump embraced cryptocurrency in what appears to be a strategic move to sway young voters, particularly young men, who are more likely to be interested in and invested in cryptocurrencies. With 56% of men between the ages of 18 and 29 voting for Trump, his strategic embrace of crypto might have played a role in his victory.
As we move forward, all eyes will clearly be on the incoming Trump administration’s actions regarding actual cryptocurrency regulation and deregulation. The market will likely remain sensitive to policy announcements and appointments to key regulatory positions. The next few months will be crucial in determining whether the current crypto rally is sustainable or if it’s a short-term reaction to campaign promises.
