The global crypto market has recently reached a new historic milestone, surpassing 3 trillion dollars in market cap.
This all-time high (ATH, All-Time High) was fueled by hopes of an era of more favorable regulations in the United States under the presidency of Donald Trump, which could kick off a new cycle of growth for this rapidly evolving asset class.
According to the data from the aggregator CoinGecko, the market capitalization reached a peak of 3.2 trillion dollars in recent days and remains close to this figure as of November 19, 2024.
A new chapter for crypto: new ATH for the global market cap
The surpassing of the 3 trillion dollars threshold reflects the growing acceptance of crypto as an integral part of the global financial system. With the election of Donald Trump, investors are betting on a change in regulatory approach that could further accelerate the expansion of this market.
Trump, during his election campaign, expressed the intention to create a clear and favorable regulatory framework for the crypto sector. This promise has attracted the attention of institutional and retail investors, who see in transparent regulation an opportunity to consolidate the growth of assets like Bitcoin (BTC) and Ethereum (ETH).
Bitcoin, the most well-known crypto, continues to dominate the market, representing about 40% of the total capitalization.
In recent days, Bitcoin has experienced a significant recovery, with valuations approaching new all-time highs, while Ethereum continues to benefit from the growing demand for decentralized applications (dApp), smart contracts, and non-fungible tokens (NFT).
Both crypto remain fundamental for the sector, driving the overall growth of the market.
The Trump Effect on the Crypto Market: New ATH Also for the Total Market Cap
The election of Donald Trump as president of the United States has represented a positive signal for many investors in the crypto sector. The prospect of clearer and more friendly regulation in the United States could eliminate many of the uncertainties that have so far held back the market.
Trump has announced the possibility of establishing a presidential advisory commission dedicated to crypto, with the aim of establishing transparent guidelines. This approach could encourage the entry of new institutional investors and accelerate the adoption of crypto. Favorable regulation could also incentivize the development of new technologies, such as decentralized finance (DeFi), and consolidate the position of the United States as a global leader in the crypto sector.
In addition to the effetto Trump, several factors are contributing to the expansion of the crypto market. More and more companies, banks, and investment funds are entering the market, bringing greater liquidity and legitimacy. The non-fungible token market continues to grow, attracting artists, celebrities, and collectors from all over the world.
Decentralized finance platforms are redefining the financial sector, offering unprecedented investment opportunities and innovation. Furthermore, countries like El Salvador, which has adopted Bitcoin as legal tender, are paving the way for large-scale adoption of crypto.
Challenges and risks for the crypto market
Despite the success, the crypto market must face some important challenges. The prices of crypto remain highly unstable, creating significant risks for investors.
Although the Trump effect is seen as positive, many countries are implementing more restrictive regulations that could limit the growth of the sector. The energy consumption of networks like Bitcoin continues to raise concerns, pushing the sector to seek more sustainable solutions.
With the surpassing of 3 trillion dollars, the crypto market enters a new phase of its evolution.
The hopes for more favorable regulation and the continuous interest of institutional investors could push the capitalization to even higher levels. However, it will be crucial to address the regulatory and environmental challenges to ensure sustainable growth. The crypto market is still young and full of opportunities, but also of risks.
Conclusions
The global crypto market has demonstrated an extraordinary growth capacity, surpassing 3 trillion dollars in capitalization.
The election of Donald Trump could represent a turning point, opening the doors to a regulated and sustainable boom. Investors, however, must remain cautious and informed, as the market remains highly volatile and subject to rapid changes.
With a mix of innovation, adoption, and regulation, the crypto sector is ready for an exciting future.
