December 24, 2024
Following Donald Trump's victory in the 2024 US presidential election, the cryptocurrency market has seen a huge surge in adoption and investment, marking the most significant growth seen in recent years.
Trump's crypto-friendly policies, with his promises of a clearer regulatory framework, have sparked global interest and investment in the sector.
A new wave of global investors in cryptocurrencies
A recent survey from Binance of over 27,000 respondents across Asia, Australia, Europe, Africa, and Latin America revealed that 45% of respondents will enter the cryptocurrency market in 2024.
Interestingly, 44% of respondents allocated less than 10% of their total assets to cryptocurrencies. This highlights the growing awareness and confidence in cryptocurrencies as a stable, long-term investment asset.
This growth isn’t just global; it’s particularly evident among younger generations. According to Bitget, the number of Gen Z users on its platform increased by 683% after Trump’s re-election. This made Gen Z account for 53.8% of new users. This surge is attributed to Trump’s pro-Bitcoin stance and general optimism about the financial market outlook.
“Donald Trump’s pro-crypto stance during the US presidential election resonated with younger users, highlighting the role of political narratives in shaping financial behavior,” Bitget reported.
The trend is similarly strong in Europe. Financial News London reports a sharp rise in crypto-related ETPs in 2024, marking a turning point for digital assets. Data from ETFGI reveals that European crypto ETPs attracted £108 million (~$135 million) in new investment in November, making it the third-best month for the product this year.
Financial News London commented: “Some of the increase was triggered by Donald Trump’s victory in the US presidential election. Cryptocurrency ETP assets in Europe have risen by around $6 billion since he won the race for the White House on November 5.”
The UK Financial Conduct Authority (FCA) has noted a continued rise in cryptocurrency ownership throughout 2024. FCA data shows that 12% of UK adults now own cryptocurrencies, up from 10% in previous reports.
“The rate of adoption in the UK suggests that the population holding crypto assets could grow significantly in the coming years,” Uldis Terodkalans, Head of Revenue at Bybase, told BeInCrypto. “Based on FCA research, many will use crypto to send and receive payments, pay for goods and services, and convert to fiat and vice versa. Businesses looking to capitalize on this trend should prioritize solutions that offer seamless transactions between crypto and fiat, to meet users’ need to bridge the gap between the two economies.”
Trump’s major policy changes, such as the creation of a strategic reserve for Bitcoin and the formation of a Bitcoin and cryptocurrency advisory board, have sparked unprecedented optimism about the future of cryptocurrencies. These moves have pushed Bitcoin prices to new record highs, with other cryptocurrencies like Ethereum following suit.
This election marked a pivotal moment for the cryptocurrency industry, not just in the United States but globally. Investors, from novices to seasoned experts, are looking for opportunities in this dynamic market, hoping for a new era where cryptocurrencies gain wider recognition and global regulation.
