Trump Victory Sends Crypto Market Into Frenzy: Bitcoin Surges to All-Time High

Trump Victory Sends Crypto Market Into Frenzy: Bitcoin Surges to All-Time HighAs the US election results unfolded, with the possibility of Trump returning to the White House becoming increasingly likely, a trading frenzy swept across the global cryptocurrency market. Bitcoin prices leaped to record highs, surging as much as 9% by 2:24 PM Beijing time, hitting a peak of $75,252

Trump Victory Sends Crypto Market Into Frenzy: Bitcoin Surges to All-Time High

As the US election results unfolded, with the possibility of Trump returning to the White House becoming increasingly likely, a trading frenzy swept across the global cryptocurrency market. Bitcoin prices leaped to record highs, surging as much as 9% by 2:24 PM Beijing time, hitting a peak of $75,252.

Bitcoin has been seen by many as a key component of the "Trump trade." During his campaign, Trump exhibited a positive attitude toward digital assets, openly accepting Bitcoin payments and even purchasing a hamburger with Bitcoin. His campaign team also invested heavily in digital asset advertising, placing these assets on the political stage.

Trump's victory signifies a positive outlook for the "Trump trade." He has vowed to make the US the "global cryptocurrency capital," establish a strategic Bitcoin reserve, and appoint a regulator who is passionate about digital assets. In contrast, Harris pledged a more cautious approach, supporting an industry regulatory framework, while the Biden administration's Securities and Exchange Commission (SEC) has taken a hard line against the crypto industry.

Trump's promises have kindled hope for the cryptocurrency industry. Matthew Hougan, Chief Investment Officer of Bitwise Asset Management, commented, "The crypto industry feels like it's been holding back one hand for years, and that might be about to end. People are starting to prepare for what's to come for crypto in the years ahead."

Bitcoin has already gained around 70% in 2024, outperforming assets like US stocks and gold. Besides Bitcoin reaching new highs, on the same day, Ethereum, the second-largest cryptocurrency, rose by about 7%; Dogecoin, promoted by Trump supporter and American entrepreneur Elon Musk, surged as much as 30%; and Solana, a smaller cryptocurrency, saw a day-high gain of nearly 16%.

Furthermore, US spot Bitcoin ETFs launched by issuers like BlackRock and Fidelity Investments have attracted net inflows of $23.5 billion since the beginning of the year, making them one of the most successful new STFs in history. Besides cryptocurrency assets, a range of assets associated with the prospect of Trump's presidency, including US stock futures, the dollar, and US Treasury yields, have also risen significantly.

Digital asset companies have often complained about the failure of officials under President Biden to establish a clear new legal framework for this emerging market. After a series of collapses in the 2022 crypto crash, particularly following the fraudulent conduct of Sam Bankman-Fried, founder of crypto exchange FTX, the US SEC cracked down on cryptocurrencies. SEC Chairman Gary Gensler has repeatedly stressed that the industry is rife with fraud and misconduct, stating that existing rules are applicable.

However, this has drawn criticism from Trump. In a rally speech, Trump declared that if he returns to the White House, he would fire incumbent SEC Chair Gensler and promised to introduce a crypto-friendly regulator. Le Shi, Managing Director of market maker Auros Hong Kong, stated, "Assuming Trump wins, the first test of his credibility will be whether he keeps his promise and fires Gensler on his first day in office."

Trump's victory not only presents new opportunities for the cryptocurrency market but also signals a potential shift in the US government's stance towards digital assets. How the cryptocurrency industry will evolve in the future, and whether Trump will actually fulfill his promises, will be a key focus for investors.