The global cryptocurrency market's total value has crossed the $3 trillion mark, driven by optimism surrounding Donald Trump’s recent election as U.S. president. This shift has led investors to anticipate more favorable U.S. regulations, which may create new growth opportunities within the cryptocurrency sector.
The combined market value of cryptocurrencies surged to an impressive peak of nearly $3.2 trillion on November 14 in Asia, according to data from CoinGecko. This level of growth marks a significant recovery from previous months when cryptocurrency prices and trading activity had stagnated.
This recent high surpasses the exuberant days of 2021 when stimulus measures during the pandemic fueled speculative investments. Bitcoin, the dominant force in the crypto market, achieved a new record price of $93,480, which contributed to this market value milestone.
“Typically, bitcoin sets the trend in the market, and other altcoins follow,” explained Matthew Dibb, chief investment officer at cryptocurrency asset management firm Astronaut Capital. “We’re seeing a gradual capital rotation that could keep pushing up the total market cap.”
Trump's victory, along with the election of several pro-crypto lawmakers in the U.S. Congress, has helped spark this renewed optimism, potentially clarifying U.S. regulatory uncertainties. Bitcoin, currently trading around $91,500, has doubled this year and seen a 30% jump since the U.S. election on November 5. Meanwhile, Ethereum, a popular alternative cryptocurrency, has climbed approximately 33% to reach $3,220 since the election.
Dogecoin, another prominent cryptocurrency endorsed by billionaire Trump ally Elon Musk, has gained 140%.
The recent spike in interest also appears to have driven demand for cryptocurrency exchange-traded funds (ETFs), likely indicating interest from financial institutions that typically avoid direct crypto holdings. According to Refinitiv Lipper data, spot bitcoin ETFs have received about $4.05 billion in net flows since November 6, approximately 15% of total inflows since their January launch.
“Investors were seeking more exposure to crypto and other high-risk assets following the Trump election,” commented a digital assets strategist from Citi. “In the crypto space, there’s an expectation of regulatory relief, and possibly even the development of a strategic bitcoin reserve.”
Although Trump has hinted at a potential “strategic bitcoin reserve” for the U.S. similar to its gold reserves, details remain unclear.
The current rally could have even more room to grow. "Bitcoin reaching $100,000 by year-end is not out of the question," noted a partner from Blockstone Capital.
A Familiar Market Pattern
The recent rise in prices follows a familiar boom-and-bust pattern seen in the cryptocurrency market. Bitcoin, which had been trading below $20,000 at the beginning of last year during the so-called "crypto winter" that followed major industry setbacks like the collapse of FTX, is now experiencing another strong upward trend.
However, the total cryptocurrency market remains small compared to more traditional asset classes. For perspective, the World Gold Council estimates that the global value of mined gold stands at nearly $19 trillion, while the market capitalization of the S&P 500 is about $50.6 trillion.
Some areas of the crypto ecosystem are still displaying caution. Non-fungible token (NFT) sales, for instance, have shown modest growth, with average prices lingering around $2,700.
In Singapore, DBS Bank noted that trading volumes on its digital exchange surged in early November, but clients were not yet diving into riskier areas of the crypto market. “We haven’t seen a shift toward more exotic platforms or decentralized exchanges,” commented a DBS Digital Exchange executive.
Industry leaders believe this renewed attention could sustain the market's momentum. “Interest in DeFi and blockchain innovation is rising,” observed a co-founder of decentralized asset tracking platform Tranchess. “If this market capitalization holds, we’re likely to see deeper engagement in emerging themes like asset tokenization and blockchain-driven payment solutions.”
