Market Update 6th November 2024
By Manoj Dharra
On Wednesday, Bitcoin surged 7% to reach an all-time high of $75,060, fueled by substantial inflows into crypto-focused exchange-traded funds. This rally coincided with Donald Trump’s victory in the U.S. presidential election, marking a new record that surpasses the previous peak of $73,750, set just a week earlier.
The crypto community has widely celebrated Trump’s victory, as he has pledged to end what he calls the “war on crypto” and position the United States as the “crypto capital of the planet.” Trump’s campaign notably embraced digital assets, accepting crypto donations and engaging with crypto supporters at various events, including a headline appearance at the Bitcoin 2024 conference in July. He has also announced the formation of World Liberty Financial, a family venture focused on cryptocurrency trading.
The broader crypto market reflected this bullish sentiment, with total market capitalization reaching $2.46 trillion. Bitcoin’s dominance climbed to 59.4%, while Ethereum rose 7.2% to $2,576, although it remains 47% below its all-time high of $4,878 in November 2021. Most of the top 100 cryptocurrencies experienced gains, largely attributed to the optimism surrounding Trump’s pro-crypto stance.
A win for Trump signals a potential pivot in U.S. crypto policy. Unlike the Democratic administration’s focus on stringent regulation, with figures like SEC Chair Gary Gensler taking a hard line on crypto enforcement, Trump’s administration is anticipated to bring in crypto advocates. Notable supporters include Robert F. Kennedy Jr. and Elon Musk, both prominent crypto allies. Trump has also pledged to create a strategic Bitcoin reserve in the U.S., targeting 200,000 BTC for national security purposes.
As further evidence of crypto support, data from Stand With Crypto indicates that 247 pro-crypto candidates secured seats in the House, while 15 pro-crypto candidates won Senate seats, signaling a growing influence in Congress. Trump has also promised to prioritize the U.S. Bitcoin mining industry, aiming to establish the country as a global leader in digital asset production.
In a clear endorsement, major figures from the crypto industry, including the founders of Gemini and Kraken, have thrown their support behind Trump, donating millions to his campaign. With Trump’s victory, the market expects a potential loosening of crypto regulations, sparking optimism that could continue driving the sector forward in the coming years.
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