The value of the global cryptocurrency market has surpassed $3 trillion following the election of Donald Trump as US president, fueling expectations of more favorable regulation that could broadly benefit the sector. According to data from CoinGecko, the cryptocurrency market value hit a high of nearly $3.2 trillion on Nov. 14, surpassing 2021 peaks.
Bitcoin, which dominates the crypto market, has hit a new record high of $93,480, and has doubled in value this year since the election, trading around $91,500 at the time of writing.
Additionally, other cryptocurrencies such as Ethereum and Dogecoin have seen increases of 33% and 140%, respectively. According to Matthew Dibb of Astronaut Capital, this Bitcoin growth trend tends to attract capital to other altcoins, which contributes to increasing the total market capitalization.
The expectation of a pro-crypto administration has created momentum, with some lawmakers in Congress also showing a favorable attitude towards the sector. David Glass, a digital asset strategist at Citi, notes that this euphoria is also due to possible initiatives, such as a US Bitcoin strategic reserve, which could further consolidate the growth of the sector.
Bitcoin exchange-traded funds have also received approximately $4.05 billion in net inflows since Nov. 6, reflecting interest from institutional investors. Blockstone Capital’s Carl Szantyr believes that reaching $100,000 for Bitcoin by the end of the year is a realistic goal if growth continues.
A market that still faces challenges
Despite the strong recovery in some sectors, other parts of the crypto ecosystem are yet to fully recover. The average selling price of non-fungible tokens (NFTs) has seen a slight rise, although still far from their peak values.
In Singapore, DBS Digital Exchange has seen an increase in trading volume, although investors seem cautious and are not yet inclined towards more exotic platforms or decentralized exchanges.
Sustained market capitalization could spur interest in new blockchain applications, such as tokenization of real assets and blockchain-based payment services.
According to Danny Chong, co-founder of Tranchess, this renewed attention could open up new opportunities within decentralized finance and other emerging themes, provided the market maintains its current growth momentum.
