Early this morning, Bitcoin hit a new all-time high, reaching $76,400. Ethereum also began to rise, reaching a high of $2,800.
Altcoins also saw a surge, with general increases of around 20%.
After the U.S. stock market opened yesterday, the three major stock indexes all opened higher, especially the S&P 500 and the Dow Jones Industrial Average, which opened directly higher.
Coinbase and MicroStrategy shares opened up 30% and 15%, respectively.
All spot ETFs also opened higher. BlackRock's spot Bitcoin ETF's trading volume exceeded US$4.1 billion yesterday, also setting a record high.
This shows that American investors are very positive about Trump's inauguration and market sentiment is very high, which has further driven the rise of Bitcoin.
So will there be a big pullback after the US election?
I think even if there is a short-term rise and fall, the decline will not be too large, and the market will most likely continue to rise after the adjustment.
Historically, the positive effects of elections usually last for three months. Moreover, the climax of the halving cycle often overlaps with the election.
Trump will not officially hand over power until January 20 next year, and it will take one or two months after he takes office before he can truly start pushing forward policy implementation.
During this period, the market will be full of expectations for Trump's future administration.
At least until he is sworn in on January 20, 2025, everyone's spirits will be high, so there won't be much problem with rising expectations.
What should we focus on after the election?
After the election, we need to focus on the US monetary policy, especially whether the Federal Reserve will continue to cut interest rates.
At present, it is almost certain that the Federal Reserve will cut interest rates by 25 basis points in November.
According to the Federal Reserve's CME observation, the probability of the Federal Reserve cutting interest rates by 25 basis points in November is as high as 98.1%.
In addition, we should also pay attention to the unemployment rate and inflation data. As long as there is no economic recession or black swan event, the fourth quarter of 2024 should be relatively stable.
The market may be somewhat volatile from Christmas to January 20. Especially during the Christmas holidays starting in mid-December, there may be capital outflows.
However, after Trump officially takes office on January 10, the market will usher in another wave of positive factors.
So which tracks should we focus on next?
I think the money-making opportunities in the three months after the election will be mainly concentrated in Bitcoin, DeFi, Sol, meme coins on Solana, and projects related to Musk and Trump.
As the market leader and weather vane, after Trump takes office, the market will begin to expect Bitcoin to become a strategic reserve asset of the United States.
Currently, the Republican Party has control of the House of Representatives and the Senate. It can be said that Trump has become one of the most powerful presidents in American history.
Moreover, this Congress is also the most pro-cryptocurrency in history, with 247 pro-crypto candidates winning seats in the House of Representatives.
Once this policy is actually implemented, other countries will follow suit, which will provide greater room for the rise of Bitcoin.
Coupled with the Federal Reserve's continued interest rate cuts and continued buying of Bitcoin spot ETFs, the increase in Bitcoin in this bull market may exceed everyone's imagination.
The DeFi track may be the first beneficiary after the policy is lifted.
The DeFi sector has risen sharply in recent days, with Uni, Aave, and Ldo all rising by more than 30%. Therefore, DeFi can also be said to be the biggest beneficiary of Trump's policies.
Meme coins will be one of the mainstream narratives of this bull market.
Because of Musk’s influence, DOGE may trigger a meme craze again, and the meme coins on Solana may become a new gathering place for big funds.
We can focus on the projects in the Sol ecosystem. I have also been doing some project screening recently.
So in general, a violent bull market has begun. We just need to understand the trend, follow the trend and invest, and be the "pig" standing on the vent.
Please note that the above is just a sharing of my personal experience and does not constitute any investment advice.
