After Donald Trump's victory in the 2024 US presidential election, the cryptocurrency market experienced a significant surge in adoption and investment, recording the largest growth in recent years.
Trump's crypto-friendly policies and his promise of a clear regulatory framework have fostered global interest and investment.
A New Wave of Global Cryptocurrency Investors
According to a recent survey, Binance surveyed over 27,000 participants from Asia, Australia, Europe, Africa, and Latin America, and found that 45% of respondents joined the cryptocurrency market in 2024.
Interestingly, 44% of participants allocated less than 10% of their total assets to cryptocurrencies, indicating that cryptocurrencies are perceived as a stable and long-term investment asset.
This growth is occurring globally, with a particularly notable trend among the younger generation. According to Bitget, the number of Gen Z users surged by 683% after Trump's re-election, accounting for 53.8% of new users. This surge is attributed to Trump's Bitcoin-friendly stance and the overall optimistic outlook on the financial markets.
"Donald Trump's crypto-friendly stance resonated with young users, highlighting the important role that political narratives play in shaping financial behavior." – Bitget report.
The European Market Also Sees Concurrent Growth
This trend is also strong in Europe. According to a report by Financial News London, cryptocurrency-related ETP assets in Europe surged in 2024, marking a significant turning point for digital assets. Data from ETFGI shows that European cryptocurrency ETPs attracted £108 million (approximately $135 million) in new investments in November, making it the third-best month of the year.
"Donald Trump's victory in the US presidential election triggered some of this increase. Crypto ETP assets in Europe have grown by almost $6 billion since he won the White House race on November 5." – Financial News London commentary.
In the UK, the Financial Conduct Authority (FCA) has observed a continuous increase in cryptocurrency ownership throughout 2024. According to FCA data, 12% of UK adults currently own cryptocurrencies, up from the previous report's 10%.
Awareness of cryptocurrencies has also increased from 91% to 93%. The average value of cryptocurrency holdings has increased from £1,595 to £1,842.
"The UK's adoption rates suggest that the proportion of residents owning crypto assets could significantly increase in the coming years. According to FCA research, many people will use cryptocurrencies to remit funds, pay for goods and services, and convert them to fiat currency. Businesses looking to capitalize on this trend should prioritize solutions that provide seamless crypto-to-fiat transactions, serving as a bridge between the two economies." – Uldis Teraudkalns, Chief Revenue Officer at Paybis, told BeInCrypto.
Trump's key policy changes, including strategic Bitcoin reserves and the establishment of a Bitcoin and Cryptocurrency Advisory Council, have sparked unprecedented optimism about the future of cryptocurrencies. These measures have propelled Bitcoin prices to new record levels, with other cryptocurrencies like Ethereum following suit.
This election has marked a pivotal moment for the cryptocurrency industry, not only in the US but globally. Investors, from novices to seasoned professionals, are seeking opportunities in this dynamic market, anticipating a new era. The hope is for cryptocurrencies to gain wider recognition and regulation worldwide.
