Cryptocurrency market exceeds $3 trillion on hopes of a boom due to Trump's victory
Kyiv • UNN
The global cryptocurrency market set a new record of $3.2 trillion after the US presidential election. Bitcoin has reached $93,480, and other cryptocurrencies are also showing growth.
The value of the global cryptocurrency market has surpassed $3 trillion, as the election of Donald Trump as US president has prompted bets that more friendly US regulation could lead to a new boom for all corners of the asset class, Reuters reports, UNN writes.
Details
The total market value of cryptocurrencies hit a high of almost $3.2 trillion on the morning of November 14 in Asia, according to analyst and data aggregator CoinGecko, and was last slightly below that level.
"This puts it above the tumultuous days of 2021, when pandemic-era stimulus fueled speculative investment, and marks a revival from a few months earlier when cryptocurrency prices and turnover plummeted," the publication writes.
Bitcoin dominates the cryptocurrency market, and market value data coincided with the token's rise to a record $93,480.
"Usually, this market develops in the following way: bitcoin breaks out first, followed by other altcoins," said Matthew Dibb, chief investment officer of cryptocurrency asset management company Astronaut Capital.
"This way, there is a gradual rotation of capital... and then we can expect an increase in the total market capitalization," he said.
The election of Trump and several pro-crypto lawmakers to the U.S. Congress has sparked a wave of euphoria, potentially dispelling some uncertainty about U.S. regulation.
Bitcoin, which last traded at around $91,500, has doubled in value this year and is up 30% since the November 5 US election to $90,000. The smaller cryptocurrency Ether is up about 33% since the vote to $3,220.
Dogecoin, an alternative and volatile token promoted by billionaire and Trump ally Elon Musk, is up 140%.
Crypto exchange-traded funds have also been sold off, possibly an indicator of purchases by financial institutions that typically avoid direct ownership of cryptocurrencies.
Spot bitcoin ETFs have attracted about $4.05 billion in net flows since November 6, according to Refinitiv Lipper, about 15% of the total inflows since their launch in January.
"It's clear that people wanted more access to cryptocurrency during the Trump presidency, and they wanted more risky assets in general," said David Glass, digital asset strategist at Citi.
"On the crypto front, it's a story of removing regulatory hurdles and a potential strategic reserve for bitcoin," he said.
Trump mentioned the US "strategic bitcoin reserve," similar to gold, which will be kept by the US government, but the details are unclear.
The current upturn, as indicated, may be of a longer duration.
"Bitcoin enthusiasts are known for their bold predictions, but reaching 1 100,000 by the end of the year seems feasible," said Karl Santir, founder and Managing Partner of Blockstone Capital.
The explosive rise, as the publication notes, is the latest in a series of rollercoaster-style ups and downs that saw bitcoin's price fall below $20,000 early last year, at the height of the "cryptozone" that followed the collapse of brokerage firm FTX and other cryptocurrency projects.
However, the market value of cryptocurrencies is lower than traditional asset classes. At current prices, the value of the 209,000 tons of gold that the World Gold Council says has been mined in history is almost $19 trillion.
The market capitalization of the S&P 500 index is $50.6 trillion.
However, representatives of the crypto industry say that the renewed attention will give a boost.
"There is an increased interest and willingness to consider DeFi and other blockchain-related opportunities," said Danny Chong, co-founder of decentralized asset tracking platform Tranchess.
"The increased market capitalization, if sustained over a longer period, is also likely to generate deeper interest in new and existing topics," he said, including tokenization of real assets and blockchain-based payment services.
Bitcoin sets a historical record, breaking the $91,000 barrierNov 13 2024, 03:08 PM • 19105 views
Add
Donald Trump's recent victory in the US presidential election has sparked a wave of interest in the financial markets, especially in the cryptocurrency sector. Bitcoin quickly skyrocketed in value. As fintech expert Olena Sosiedka explained, cryptocurrencies, especially bitcoin, are sensitive to political events, such as the US presidential election, because they are considered alternative assets amid financial and political instability. She does not rule out that the price of bitcoin may rise before Trump's inauguration in January.
In her opinion, investors can continue to invest in bitcoin, expecting positive changes in regulatory policy under the new president Donald Trump. The expert also shared her thoughts on other cryptocurrencies, such as Ethereum and Litecoin, which may rise in price amid growing interest in digital assets in general. At the same time, she reminded that cryptocurrencies remain high-risk assets, so any investment requires a cautious approach.
