The rise in crypto assets reflects the market's expectation of the loose policies brought about by Trump's election
Author: Pzai, Foresight News
With the confirmation of votes in all U.S. states, Trump's election has become a foregone conclusion. As a president with a strong crypto flavor, his friendly attitude towards cryptocurrencies has also injected a strong impetus into the further growth of the market, and Bitcoin, which is an important part of Trump's future crypto strategy, has officially hit a new historical high. Through this article, we will review the relevant asset changes before and after the election.
Cryptocurrencies
Within two days, Trump's election victory drove the total market capitalization of cryptocurrencies to grow 12% from $2.3 trillion to $2.63 trillion, reflecting the push of this politically influential figure on the crypto industry.
For cryptocurrencies, the influence of the "Trump trade" is also reflected in real-time market conditions. As the strategic core and the leader of the crypto market, Bitcoin has seen a more significant rise before and after the election. At 8 a.m. yesterday, Bitcoin started an upward trend at the $69,000 level and briefly broke through the previous high, reaching a maximum of $76,200 subsequently.
Ethereum rose slowly from the $2,620 level yesterday and jumped to the $2,800 level today. The ETH/BTC exchange rate also recovered from the historical level of 0.034 to 0.0377. As the second largest asset in the crypto market, Ethereum's performance has lagged behind Bitcoin to a certain extent.
In terms of MEME assets, as one of Musk's favorites, DOGE started from $0.17 and reached a high of around $0.022 yesterday. Another mainstream MEME coin PEPE reached a high of $0.00001.
Solana jumped from the $166 level to a high of $189, reaching a new stage high.
In DeFi, AAVE rose from $135 to a high of $190, while ENA also briefly broke through the $0.5 barrier from $0.35.
Crypto-related stocks
The influence of Trump's policies has already begun to manifest in the market, and it is evident that crypto-related stocks and ETFs in the U.S. stock market are actively responding to the potential growth of the crypto market.
In terms of exchanges, the major compliant exchanges have seen significant gains: Coinbase rose 31.11%, and Robinhood rose over 19.6%. In terms of mining companies, influenced by Trump's proposal to develop Bitcoin mining in the U.S., Cipher Mining rose over 31%, Riot Platforms rose over 26.1%, and Canaan Inc. ADR rose about 13%. In terms of ETFs, a double long Bitcoin ETF rose over 19.7%, the Ethereum ETF ETHV rose over 11.4%, and the Bitcoin ETF BITB rose about 9.9%. "Bitcoin holding giant" Micro Strategy (MSTR) rose about 13.2%.
Market Outlook
Some traders believe that in view of Trump's high tariff policy, China's possible loose policies to counter U.S. tariffs may lead to related fluctuations in assets, particularly affecting the strength of the U.S. dollar and the trend of bond yields, which will then be transmitted to the crypto market.
The market expects the Federal Reserve to cut interest rates by 25 basis points this month, so traders are closely watching the Fed's next move. Due to concerns that potential hawkish policies may dampen market enthusiasm, the outlook for crypto assets is still unclear. In a report on Wednesday, Singapore crypto asset management firm QCP stated that "although it is expected that the possibility of rate cuts will decrease due to the more friendly policies proposed by Trump, the market still expects 1.8 rate cuts this year and another 3 next year".
Overall, the rise in crypto assets clearly reflects, to a certain extent, the market's expectation of the loose policies brought about by Trump's election. Capital is pre-pricing the expected benefits based on the need to hedge against this potential risk. If the U.S. policy can balance compliance and innovation, it will further enhance the widespread acceptance and legitimacy of crypto assets, especially the hedging attributes and stable growth potential of assets like Bitcoin. In the long run, the price trend of crypto assets will still be closely related to their market acceptance, the strength of policy support, and the global capital flow. The clarity and sustainability of policies will be the key factors for investors to regain confidence in the next period of time.
