Bitcoin reached new heights on Wednesday, with prices climbing over 10% to $76,493.86 in response to former President Donald Trump’s election win. This surge comes as Trump, who campaigned with a pro-crypto stance, sparked investor optimism for lighter regulations and a more favorable environment for cryptocurrencies.
Trump’s Pro-Crypto Agenda
Throughout his campaign, Trump positioned himself as an advocate for cryptocurrency. His proposals included creating a dedicated crypto advisory council and installing regulations designed to encourage U.S.-based bitcoin mining, as well as establishing a national bitcoin reserve. These initiatives were well-received within the industry, which has been eagerly anticipating relief from regulatory hurdles that have restricted its growth. Trump’s promises included replacing Gary Gensler, the current chair of the U.S. Securities and Exchange Commission (SEC), who has been seen by the crypto community as an obstacle to industry expansion.
Market Reactions: Major Cryptocurrencies and Stocks See Gains
In the wake of the news, not only did Bitcoin reach new records, but other major cryptocurrencies also saw significant gains. Ether surged 11%, while Solana and XRP rose 13% and 5% respectively. Memecoins such as Dogecoin, which often see spikes during market excitement, jumped by 15%.
The ripple effect also extended to stocks with strong ties to cryptocurrency. Coinbase experienced its best trading day since its 2021 debut, climbing over 31% by Wednesday afternoon, and MicroStrategy, known for its large Bitcoin holdings, advanced 13%.
Also read: Tether Faces U.S. Government Investigation, Shaking the Crypto Market
Crypto Industry Hopes for Regulatory Clarity
Trump’s win has heightened industry expectations for a clear regulatory framework, something advocates say is overdue. Gary Gensler’s tenure has been marked by criticism for what many describe as “regulation by enforcement,” where fines and lawsuits take the place of clear rules. The new administration is expected to push for clearer guidelines that could foster crypto growth while balancing consumer protection.
Anthony Yeung, Global Head of Strategic Development at CoinCover, noted that “the industry needs proportionate regulation that balances innovation and consumer protection.” Such clarity, he believes, would allow for secure expansion within the U.S., potentially positioning the country as a leader in the crypto sector.
Election Trends and Crypto Market
Historical data shows a correlation between election years and Bitcoin’s performance. In 2012, 2016, and 2020, Bitcoin experienced average returns of 92% in the 90 days following election day. Analysts suggest that Bitcoin’s halving cycle, which reduces supply, and major policy shifts from the Federal Reserve around election years could influence these trends. This year’s election is significant as it aligns with a trend of potential interest rate reductions by the Fed, further boosting investor confidence in Bitcoin as an inflation hedge.
As Trump prepares for his second term, the crypto community is looking forward to an era of support and possibly unprecedented growth. While specific regulatory changes remain to be seen, the anticipation of a friendlier environment for digital currencies could drive continued gains.
Also read: Hacker Steals $20M Crypto From US Government Wallet
