President-elect Donald Trump’s victory in the U.S. presidential election has sparked tremendous excitement in the cryptocurrency market. Bitcoin has been setting all-time records lately, while many other cryptocurrencies are also experiencing even greater gains.
Bitcoin is approaching $90,000. After some quiet months, bitcoin’s trajectory has become incredibly dynamic since Trump’s reelection. According to CoinMarketCap, bitcoin recently surged by 30.68%, breaking successive all-time highs. While the previous record was $73,800 in March 2024, bitcoin is now on the verge of surpassing $90,000.
Trump’s optimism. During his election campaign, Trump made several promises to the cryptocurrency industry. Notably, he expressed his desire to transform the U.S. into the “crypto capital of the planet.” He even advocated for the country to establish a strategic national bitcoin reserve.
Influenced by bitcoin. Recent rises have been widespread. For example, ethereum, the second-largest cryptocurrency by market capitalization, has recently gained slightly more than bitcoin at 38.69%. It reached its all-time high of $4,635 in November 2021, and it’s currently hovering around $3,370. Additionally, cardano experienced impressive growth of 85.25% over the same period, while solana’s growth was 36.34%. Many other cryptocurrencies are also showing similar growth trends.
Dogecoin’s surge has been particularly remarkable. Dogecoin has benefited massively from Trump’s victory, skyrocketing by 143.59% in just a week and climbing from $0.17 to $0.41. Its previously recorded all-time high was $0.65 in May 2021, which was notably brief and anomalous.
Current value of the top 10 cryptocurrencies by market capitalization. Their growth over the past seven days is highlighted in the “7d %” column. | Image: CoinMarketCap
Musk in the spotlight. Tesla CEO Elon Musk was a key Trump supporter during his campaign. At one of Trump’s events, Musk discussed a new initiative called the “Department of Government Efficiency,” or DOGE, which is also another name for the dogecoin cryptocurrency. Musk’s announcement led to a surge in the value of dogecoin weeks ago, and it has since risen even higher. Meanwhile, Tesla’s stock has also increased significantly, allowing its CEO to amass the largest fortune ever recorded.
Enthusiasm for cryptocurrencies is back. The extreme volatility currently seen in the market resembles past trends when bitcoin experienced rapid price increases. Companies like Coinbase, which is closely tied to bitcoin, are naturally seeing stock price increases. Similarly, MicroStrategy, which has focused on expanding its bitcoin holdings, recently purchased an additional 27,200 bitcoin for approximately $2 billion.
Caution is advised. Historically, extreme volatility in cryptocurrencies has often been followed by dramatic declines. For instance, after the spikes in 2021, the year 2022 turned out to be disastrous for cryptocurrencies, leaving latecomers to the market with significant losses.
Image | Traxer
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