Antony Parsons
On November 5, 2024, the election of Donald Trump as the 47th president of the United States sent shockwaves through the financial markets, particularly in the cryptocurrency sector. Bitcoin, the world’s largest cryptocurrency by market capitalization, has been on a meteoric rise, breaking all-time highs even before his victory was official. The price of bitcoin first surged to $74,000 on Election Day evening and continued to climb, breaking the $89,500 level this morning. This marks a historic milestone in the world of digital currencies.
Pro-Crypto Optimism Fuels Bitcoin’s Surge
The surge in bitcoin’s price is largely attributed to the pro-crypto stance of President-elect Donald Trump. Pro-crypto voters and investors have bet that a Trump presidency would be beneficial for the cryptocurrency industry, leading to increased adoption and regulatory support. This optimism has translated into significant gains for bitcoin and other digital assets.
Analysts at Bernstein have predicted that bitcoin’s price could reach up to $90,000 by January 2025, driven by a combination of investor confidence and positive regulatory developments. The rally has not been limited to bitcoin; other cryptocurrencies have also experienced substantial gains. For instance, the native coin of Crypto.com, Cronos (CRO), hit a price of $0.21 on November 12, representing a 196% increase over the past seven days. Other digital assets like Dogecoin, AIOZ Network, and Cardano have also seen significant price increases last week.
Market Response and Investor Sentiment
The market response to Trump’s victory has been overwhelmingly positive. Bitcoin mining companies have seen their stock prices soar, with CleanSpark (CLSK) even being halted due to the rapid upward price action. This indicates a strong belief among both miners and investors that the U.S. will become a more favorable environment for Bitcoin mining and the broader cryptocurrency industry under Trump’s leadership.
As of 3:45 p.m. ET on November 12, 2024, bitcoin’s price stood at $87,083, up over 28% in the last week alone. The rally has been fueled by a combination of factors, including Trump’s pro-crypto policies, increased institutional interest, and a general sense of optimism about the future of digital currencies.
Global Impact and Future Prospects
The impact of Trump’s victory on the cryptocurrency market is not limited to the United States. Global investors are also taking note, with crypto-related shares rallying across various markets.
While the future of cryptocurrencies remains uncertain, the current trajectory suggests a period of sustained growth and innovation. The pro-crypto stance of the new administration could lead to more favorable regulations, increased adoption, and a broader acceptance of digital currencies in everyday transactions.
As the market continues to react to the election results, investors and analysts are closely watching for further developments that could influence the price of bitcoin and other cryptocurrencies. The coming weeks and months will be crucial in determining whether the current rally is a short-term phenomenon or the beginning of a new era for the cryptocurrency industry.
However, many experts believe that the current rally is just the beginning of a new phase in the market. Specifically, it is predicted that the second phase of the bull market is about to start, which is expected to last for around 6-9 months, ending sometime in 2025. This phase is often referred to as the “Altcoins Mania” phase, where the price of most altcoins is expected to outperform Bitcoin.
During this phase, investors can expect a surge in the value of alternative cryptocurrencies, as the market shifts its focus from Bitcoin to other digital assets. Stay tuned for more updates and insights into the evolving landscape of digital currencies, as we navigate this exciting and potentially lucrative phase of the market.
