Since Trump won the 2024 election, the Bitcoin market has experienced a significant rally. After Trump declared victory on November 5, the price of Bitcoin quickly climbed, rising more than 30% and hitting an all-time high of $89,968 on Tuesday, according to Bloomberg data. The meteoric rise did not last, with Bitcoin prices experiencing some pullback as traders began to assess the possible long-term impact of Trump's election on the cryptocurrency market.
Trump’s victory undoubtedly brought a new impetus to the cryptocurrency market. During the campaign, Trump promised to establish a friendly regulatory framework for cryptocurrencies and even proposed establishing a strategic Bitcoin reserve to promote the United States as the center of the global cryptocurrency industry. The shift in stance is particularly notable because Trump has previously been skeptical of cryptocurrencies. However, Trump’s policy stance has changed significantly as digital asset companies have invested heavily in lobbying and funding during the campaign.
This change has brought unprecedented optimism to the cryptocurrency market. Investors have flocked to the market, driving the prices of digital assets such as Bitcoin to continue to rise. Trump's policy promises not only provide more legitimacy support for the cryptocurrency industry, but also inspire market confidence in its future growth. Driven by this optimism, the market value of Bitcoin continues to hit new historical highs.
Despite the rapid rise, investors are also beginning to pay attention to whether the Trump administration can deliver on its promises. Trump and his Republican lawmakers may face many challenges during their time in office, including more pressing issues such as China policy and the US economy. Therefore, whether digital asset legislation will be put on the back burner has become the focus of market attention. This uncertainty has caused the price of Bitcoin to pull back after hitting a new high.
In addition to Bitcoin, a new force has emerged in the cryptocurrency field recently - Dogecoin. This Shiba Inu-themed cryptocurrency has become a favorite of the meme crowd under the promotion of billionaire Elon Musk. Musk not only frequently mentioned Dogecoin on social media, but also hinted that he might lead a government efficiency department, the abbreviation of which happens to be a tribute to cryptocurrency. Trump announced the establishment of the department after the election to cut wasteful spending and invited Musk to serve as co-director. After the announcement, the price of Dogecoin rose briefly, once again proving Musk's influence on the cryptocurrency market.
The strong performance of Dogecoin has not only attracted the attention of a large number of investors, but also stimulated the market's interest in other small cryptocurrencies. These small cryptocurrencies usually have higher volatility and risks, but may also bring higher returns. Therefore, some investors have begun to diversify their funds into these small cryptocurrencies in the hope of obtaining higher returns.
In terms of global markets, the focus is gradually turning to the upcoming US inflation data. This data is of great significance for judging the future room for the Federal Reserve to cut interest rates. If the inflation data is higher than expected, then the Federal Reserve may adopt a tighter monetary policy to curb inflation, which will lead to higher borrowing costs and put pressure on riskier investments (including cryptocurrencies). Therefore, investors are closely watching the release of this data to judge its possible impact on the cryptocurrency market.
Despite many uncertainties, the cryptocurrency market still shows strong growth potential. Some market analysts believe that although the price of Bitcoin may fall back, the overall upward trend has not changed. At the same time, as more and more large institutions and investors begin to get involved in the cryptocurrency market, the market size and influence of this field will continue to expand.
In addition, the leverage level in the cryptocurrency market is relatively low, which also provides more stability to the market. Some market observers point out that the relatively low leverage level helps to mitigate the risk of a sharp market correction. Therefore, although the market may fluctuate in the short term, the cryptocurrency market still has broad development prospects in the long run.
To sum up, the Bitcoin market experienced a significant rally after Trump won the election, but then experienced a correction. Meanwhile, smaller cryptocurrencies such as Dogecoin are also showing strong growth. In terms of global markets, investors are closely watching the release of U.S. inflation data to gauge its possible impact on the cryptocurrency market. Despite facing many uncertainties, the cryptocurrency market still shows strong growth potential and deserves investors' continued attention.
