The rise in crypto assets reflects the market's expectations of loose policies brought about by Trump's election.
Written by: Pzai, Foresight News
With the confirmation of voting across the U.S. states, Trump's election has become a settled matter. As a president with a strong crypto inclination, his friendly attitude towards cryptocurrencies has injected a boost for further market growth, with Bitcoin, as an important component of Trump's future crypto strategy, officially breaking through its historical high. Thus, we review the related asset changes before and after the election through this article.
Cryptocurrency
Within two days, Trump's election propelled the total market value of cryptocurrencies to increase by 12% from $2.3 trillion to $2.63 trillion, reflecting his role as the most politically influential figure in driving the crypto industry.
For cryptocurrencies, the influence of the "Trump trade" is also reflected in real-time market conditions. Bitcoin, as the core of the strategy and the leader of the crypto market, has shown significant gains before and after the election. Yesterday morning at 8 o'clock, Bitcoin started a rally at the $69,000 position, briefly breaking the previous high, and later reached a maximum of $76,200.
Ethereum slowly rose from $2620 yesterday and jumped to $2800 today. The ETH/BTC exchange rate also recovered from its historical position of 0.034 to 0.0377. As the second largest asset in the crypto market, Ethereum's performance has diverged somewhat from Bitcoin.
In the MEME asset space, DOGE, favored by Musk, started at $0.17 and reached a high of about $0.022 within yesterday. Another mainstream MEME coin, PEPE, peaked at $0.00001.
Solana jumped from $166 to a high of $189, reaching a new peak.
In the DeFi space, AAVE rose from $135 to a high of $190, while ENA also briefly broke above the $0.5 mark from $0.35.
Crypto-related stocks
The influence of Trump's policies has begun to manifest in the market, as evidenced by the active response of related crypto stocks and ETFs in the U.S. stock market to the potential growth of the crypto market.
On the exchange side, major compliant exchanges saw significant increases: Coinbase rose by 31.11%, and Robinhood increased by over 19.6%. In the mining sector, influenced by Trump's advocacy for developing Bitcoin mining in the U.S., Cipher Mining rose over 31%, Riot Platforms increased by over 26.1%, and Canaan Creative ADR rose about 13%. In terms of ETFs, the double-leveraged Bitcoin ETF rose over 19.7%, the Ethereum ETF ETHV rose over 11.4%, and the Bitcoin ETF BITB rose about 9.9%. "Bitcoin whale" MicroStrategy (MSTR) rose about 13.2%.
Future market views
Some traders believe that given Trump's high tariff policies, China's potential easing measures in response to U.S. tariffs may bring about related asset volatility, particularly affecting the strength of the dollar and the trend of treasury yields, which could then transmit to the crypto market.
The market expects the Federal Reserve to cut interest rates by 25 basis points this month, so traders are closely watching the Fed's next moves. Due to concerns that potential hawkish policies may dampen market enthusiasm, the outlook for crypto assets remains unclear. Singapore's crypto asset management firm QCP stated in a report on Wednesday, "Although the likelihood of a rate cut may decrease due to Trump's proposed friendlier policies, the market still expects 1.8 rate cuts this year and 3 rate cuts next year."
Overall, the rise in crypto assets clearly reflects the market's expectations of loose policies brought about by Trump's election. Capital has priced in these anticipated benefits in advance due to the hedging demand against this potential risk. If U.S. policies can balance compliance and innovation, it will further enhance the broad acceptance and legitimacy of crypto assets, especially the safe-haven attributes and stable growth potential of assets like Bitcoin. In the long term, the price trend of crypto assets remains closely related to their market acceptance, the strength of policy support, and global capital flows. The clarity and sustainability of policies will be key factors for investors to rebuild confidence in the near future.
