Donald Trump’s victory in the U.S. presidential election ignited the cryptocurrency market, driving major assets like Bitcoin to new highs. Trump is known for his pro-business, anti-regulatory stance and has consistently positioned himself as a candidate supporting cryptocurrencies, promising to make the U.S. a global hub for digital assets. His election promises and anticipated policies have sparked tremendous optimism among crypto investors, with many eagerly awaiting a more supportive regulatory framework for cryptocurrencies. For industry insiders, Trump's victory signals a potential turning point, with the new government expected to drive crypto innovation, attract institutional capital, and clear the regulatory fog created by previous administrations.
Bitcoin price breaks $75,000, setting a new historical high
Following the announcement of Trump’s victory, Bitcoin’s price surged to a historical high, exceeding $75,000. Traders and investors reacted to the anticipated shift in U.S. crypto policy. As a "safe-haven asset" during times of economic and political uncertainty, Bitcoin received a significant boost, primarily driven by investors' expectations that the Trump administration would encourage investments in high-growth assets and alternative financial products. Analysts believe that Trump’s pro-crypto stance, combined with his push for deregulation and tax incentives, could spark a new wave of institutional adoption for Bitcoin, leading to sustained long-term growth.
AJ Bell analyst Russ Mould noted that Bitcoin's price is closely related to Trump's position in election polls, with each increase in Trump's winning probability accompanied by a rise in Bitcoin's price. "Investors may believe that a Republican victory will lead to a surge in demand for digital assets," Mould said. Many industry insiders share this view, believing that Trump’s victory is a key factor in driving renewed attention and capital inflow into Bitcoin, especially among institutional investors seeking diversification and inflation hedges. As Bitcoin's market capitalization approaches $1.5 trillion, some experts speculate that a favorable regulatory environment could propel Bitcoin's price to unknown heights.
Altcoins benefit from Trump’s supportive policies, rising alongside Bitcoin
With Trump’s victory signaling a more crypto-friendly regulatory environment, various altcoins have risen in tandem with Bitcoin. These include Pepecoin, Dogecoin, Litecoin, and Toncoin, each of which may gain unique advantages from Trump’s pro-crypto stance, particularly in their roles within the Web3 ecosystem. As the digital economy grows, these altcoins are increasingly seen as important components of the broader decentralized finance and Web3 infrastructure.
Pepecoin has garnered significant market attention, attracting many retail investors eager to catch the trend. Known for its vibrant community and meme-driven appeal, Pepecoin’s growth trajectory may be further amplified during Trump’s presidency, especially if regulations provide clearer guidance for digital assets, making trading and acceptance of such tokens simpler. As a creative and experimental facet of the crypto market, Pepecoin reflects a segment of the altcoin space that thrives on community participation, making it an asset worth watching in a Trump-led crypto environment.
Following Trump’s victory, Dogecoin (Doge) also saw a price increase, primarily due to its close association with Elon Musk—an advocate for the token who may potentially join the Trump administration. Trump’s proposed "Department of Government Efficiency"—abbreviated as "D.O.G.E."—has sparked speculation that Dogecoin could gain greater recognition in the mainstream, potentially even being applied to certain government projects. The community-driven nature of Dogecoin, coupled with Musk’s influence, could make it a cultural icon in the crypto space, especially if Trump’s policies create new applications for digital payments.
Litecoin, known for its stable image as "digital silver," has gained a loyal following due to its advantages in transaction speed and efficiency, often seen as a practical choice for everyday transactions. Under a Trump administration that supports the integration of cryptocurrencies into mainstream business, Litecoin may achieve broader adoption in the payments sector. As a more stable and widely accepted asset, Litecoin could benefit from any regulatory measures aimed at promoting the use of cryptocurrencies for everyday consumption, solidifying its position as a bridge between digital assets and the traditional financial system.
Toncoin, closely associated with the Telegram messaging platform, is another altcoin expected to benefit from Trump’s pro-crypto policies. As a Layer 1 blockchain focused on scalability and fast transactions, Toncoin could play a significant role in the development of decentralized applications within the Web3 ecosystem. Trump’s deregulatory trend is expected to lower the entry barriers for projects like Toncoin, enabling them to attract more developers and expand their functionalities in decentralized finance and other blockchain applications. With its unique infrastructure and connection to Telegram, Toncoin may become an important player in the growing decentralized internet.
Short-term risks: Post-election market volatility challenges, significant risk of short-term market correction
Despite the significant market surge following Trump’s victory, short-term risks in the crypto market remain, primarily influenced by the power transition and regulatory continuity.
Trump’s administration will not officially take office until January, during which time the current government, particularly the administration led by Joe Biden, may take measures that impact the market. The Biden administration has maintained a cautious stance on cryptocurrency regulation and may implement some regulatory measures during the transition period, especially as the Democrats may wish to secure their regulatory legacy before handing over power. Such measures could temporarily dampen market sentiment or create regulatory hurdles that the Trump administration will need to address upon taking office.
Additionally, Bitcoin and altcoins have experienced significant gains before and after the election, making the risk of a short-term market correction hard to ignore. Many investors may choose to take profits after the sharp rise following the election, leading the market into a profit-taking phase and increasing selling pressure. This could result in temporary market volatility as the market absorbs new price levels and adjusts expectations regarding the impact of Trump’s policies. Market analysts point out that while Trump’s victory is positive for the crypto market, this price surge may reflect a "buy the rumor, sell the news" phenomenon, with initial optimism potentially entering a consolidation phase thereafter.
Moreover, in the coming weeks, the Biden administration may still implement policy changes that could affect Trump’s pro-crypto agenda. Observers warn that regulators may introduce last-minute rules or guidelines aimed at tightening the cryptocurrency industry, which could create legal and operational complexities for crypto businesses in the short term. This transition period may be challenging as the Trump administration will need to work to roll back or modify restrictive measures that the Biden team may implement.
A new era begins, but challenges remain
Trump’s election undoubtedly brings incentives to the crypto market, with Bitcoin reaching new highs and altcoins like Dogecoin, Pepecoin, Litecoin, and Toncoin regaining market attention. Investors are optimistic about Trump’s pro-crypto stance and policies that may reduce regulatory barriers and encourage blockchain and digital asset innovation.
However, despite the market celebration, the road ahead remains uncertain. Trump’s policies will take time to implement, and the transition period may bring volatility as the Biden administration still holds the reins in the short term. Investors should remain cautious and prepare for market corrections, even as they look forward to a more crypto-friendly environment under Trump’s leadership.
The crypto market has entered a new phase, and Trump’s presidency may bring significant changes. Bitcoin and altcoins are currently riding a wave of optimism, but in the coming months, as the market responds to the power transition, the resilience of this rally will be tested.
About BingX
Founded in 2018, BingX is a leading global cryptocurrency exchange that provides a diverse range of products and services, including spot trading, derivatives, copy trading, and asset management, to over 10 million users worldwide. In response to market demands, BingX regularly offers mainstream cryptocurrency market analysis, such as Bitcoin and Ethereum trends, to meet the varying needs of beginners to professionals. BingX is committed to providing a trustworthy platform, empowering users with innovative tools and features to enhance their trading capabilities. In 2024, BingX proudly became the main partner of Chelsea Football Club, marking its exciting debut in the sports world.