As the voting results from various states in the U.S. are gradually revealed, news of Trump's re-election spreads quickly. As a president with an open attitude towards cryptocurrency, his election undoubtedly injects a boost into the crypto market, especially Bitcoin, which is a crucial part of Trump's crypto strategy, with its price hitting a historical high. Below, we will review the changes in crypto assets and related fields before and after the election.
In just two days following the announcement of the election results, the total market capitalization of the cryptocurrency market saw significant growth, jumping from $2.3 trillion to $2.63 trillion, an increase of 12%. This change fully demonstrates Trump's strong influence on the crypto industry as a political leader.
Bitcoin, as the leader of the crypto market, showed a significant upward trend in price during the election period. On the morning of the election results announcement, Bitcoin's price started to climb from $69,000 and once broke through the previous price peak, ultimately reaching a high of $76,200.
Meanwhile, Ethereum's price has also shown a steady upward trend. Although its increase is not as significant as Bitcoin's, Ethereum's price rose gradually from $2,620 to break through $2,800. Additionally, the exchange rate between Ethereum and Bitcoin has also rebounded from previous lows.
In terms of MEME assets, popular cryptocurrencies like DOGE and PEPE have also demonstrated strong upward momentum. Among them, DOGE's price started rising from $0.17 and once reached a high of $0.022 during the election period, while PEPE's price also hit a new high of $0.00001.
In addition, emerging cryptocurrencies like Solana have also performed well, with their prices rising from $166 to a new high of $189. In the DeFi sector, popular projects such as AAVE and ENA have also shown an upward price trend, with AAVE's price once reaching a high of $190, while ENA's price has also broken through the $0.5 mark.
In the stock market, stocks and ETFs related to cryptocurrencies have also actively responded to market changes. The stock prices of mainstream exchanges rose by 31.11% and 19.6%, respectively. Additionally, influenced by Trump's advocacy for developing Bitcoin mining in the U.S., the stock prices of mining companies like Cipher Mining and Riot Platforms also saw substantial increases. Furthermore, ETFs related to Bitcoin and Ethereum also showed an upward trend.
Regarding the future market development, some traders believe that Trump's high tariff policies may provoke countermeasures from countries like China, which could impact the strong position of the dollar and the trend of treasury yields. These factors could have some effects on the crypto market.
At the same time, the market generally expects the Federal Reserve to cut interest rates by 25 basis points this month. However, due to concerns that potential hawkish policies may dampen market enthusiasm, the outlook for crypto assets remains somewhat uncertain. Nevertheless, some institutions believe that although Trump's election may reduce the likelihood of rate cuts, the market still anticipates multiple rate cuts this year.
Overall, the rise in crypto assets reflects the market's expectations of loose policies following Trump's election to some extent. In the future, if U.S. policies can balance compliance and innovation, the widespread acceptance and legitimacy of crypto assets are expected to improve further. In the long term, the price trend of crypto assets remains closely related to their market acceptance, the level of policy support, and global capital flows. The clarity and sustainability of policies will be key factors for investors to rebuild confidence.
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