Bitcoin reached a record-breaking price of $76,400, marking a historic milestone for the cryptocurrency market after $200 billion in fresh capital flowed into the sector within 24 hours.
The sharp rise followed the U.S. election results, in which Donald Trump secured a victory against Kamala Harris, igniting optimism among cryptocurrency investors. According to CoinGecko, the total market capitalization of all cryptocurrencies surged to $2.652 trillion.
Market momentum drives Bitcoin to record levels
Bitcoin, the largest cryptocurrency by market value, rose to its highest price in history, gaining 3.42% over the last week. With a market cap of $1.4 trillion, Bitcoin’s dominance remains at 57%, solidifying its position as the leader in the crypto space. The election results have heightened market confidence, driving retail and institutional investments in digital assets.
Altcoins also experienced a wave of growth, benefiting from the influx of new capital. Solana’s SOL, for instance, surpassed Binance Coin (BNB) to claim the fourth spot in market capitalization. Solana now ranks behind Bitcoin, Ethereum, and Tether with a valuation of $88.7 billion. This shift highlights the growing interest in blockchain projects offering innovative solutions.
Memecoins and AI tokens see significant gains
Memecoins, particularly Dogecoin, recorded notable gains amid the broader market rally. Dogecoin, which enjoys strong support from Elon Musk, saw a 12% increase over the past week, although it has dropped 7% in the last 24 hours. Musk, a prominent Trump supporter, has further fueled speculation by being linked to a proposed Department of Government Efficiency D.O.G.E., which Trump hinted Musk might lead.
AI-related crypto projects also attracted significant investment from retail traders, underscoring the growing demand for emerging technologies within the digital asset sector. The bullish sentiment across various tokens suggests increased investor optimism for the future of cryptocurrency.
Donald Trump says he will:– support crypto businesses– support the right to self custody– keep Elizabeth Warren away from bitcoin– ban central bank digital currencies pic.twitter.com/Cz1zwuonWi
— Crypto Tea (@CryptoTea_) May 26, 2024
Trump administration promises crypto-friendly policies
Donald Trump’s administration has pledged to foster a supportive environment for cryptocurrencies. During his campaign, Trump vowed not to sell Bitcoin held by the U.S. government and opposed the development of a central bank digital currency. He also promised to protect self-custody rights for U.S. crypto investors and fire SEC Chair Gary Gensler.
Trump expressed plans to pardon Ross Ulbricht, the founder of the Silk Road marketplace, and reiterated his goal to ensure that the United States becomes a global hub for cryptocurrency innovation. These assurances have bolstered optimism in the crypto community, setting the stage for potential policy shifts under his leadership.
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