Trump Wins 2024 Election: What It Means for the Cryptocurrency Market

Immediate Reactions from the Crypto Market

Bitcoin Surges to New Heights

Trump's victory in the US election has shaken up the markets, and it’s clear: the Trump crypto impact is massive. Following his win, Bitcoin shot past its previous record, smashing through the $75,000 barrier. 

Following the spike, Bitcoin has also surpassed Meta Platforms to claim the 9th spot in global market capitalization rankings, with a market cap of $1.47 trillion.

This Bitcoin all-time high wasn’t just a quiet climb; trading volumes exploded, soaring 165.67% in just 24 hours. On-chain sleuths tracked over $132 million in BTC moving off Binance as 11 fresh wallets withdrew 1,807 BTC.

Overwhelmingly, the number of Bitcoin millionaires jumped from 121,061 on October 7 to 132,842, marking an increase of 11,487 new millionaires. Currently, 121,126 wallet addresses hold between $1 million and $9.99 million, while 11,716 addresses boast balances exceeding $10 million. Over the past 30 days, wallets with more than $10 million swelled by 1,263, a 12.29% rise, pointing to a growing concentration of wealth at the top.

But what’s driving this? It’s not just the price. Bitcoin open interest jumped 8.73%, signaling renewed trader confidence. Short positions? Wiped out. Nearly $374 million in shorts were liquidated in a day, with $258 million lost in just 12 hours. This shows how quickly crypto market volatility can work in your favor—or against you.

Altcoin Performance

Bitcoin wasn’t the only star. Altcoins went wild, with no top 100 coins seeing a dip. Ethereum surged past $2,600, while memecoins and DeFi tokens stole the show. Coins like GOAT, NEIRO, and UNI spiked over 30%, and even AAVE gained 23%, riding on its ties to Trump’s WLFI project. This cryptocurrency market reaction proves how political winds can shift entire ecosystems.

Crypto markets thrive on momentum, and Trump’s crypto policies seem to be lighting a fire under digital assets. Whether you’re into Bitcoin or exploring the altcoin universe, this is one rally you don’t want to ignore. The question is: where do we go from here?

Trump's Evolving Stance on Crypto

Trump’s recent embrace of crypto-friendly policies marks a striking shift from his earlier skepticism. Like what has been highlighted in our analysis of the Trump trade narrative, his new agenda is packed with ambitious proposals aimed at boosting the U.S. crypto industry and attracting crypto enthusiasts. Here’s what he’s planning:

• Making the U.S. a crypto hub
  Trump crypto impact increased as he revealed the ambition to transform the U.S. into the "crypto capital of the planet." This includes creating a strategic national Bitcoin reserve by utilizing existing government-held Bitcoin. His goal? Acquire one million BTC, a plan that aligns with Senator Cynthia Lummis’s proposal.
• Advisory Council for Crypto
  He plans to establish a "Bitcoin and crypto presidential advisory council" to provide regulatory guidance and promote innovation.
• Opposition to CBDCs
  Trump strongly opposes the Federal Reserve’s development of a central bank digital currency (CBDC), citing concerns over privacy and centralization.
• Support for Bitcoin Mining
  His policies emphasize Bitcoin mining as a way to boost domestic energy production and create jobs.
• Regulatory Clarity for Stablecoins
  Trump promises to clarify regulations for stablecoins, ensuring they grow responsibly within the financial system.
• Pro-Crypto Administration
  His administration plans to replace SEC Chair Gary Gensler with a more crypto-friendly regulator and make thousands of appointments favoring pro-crypto policies. 
• Key Personnel and Controversial Promises
  Pro-crypto advocates like Howard Lutnick will help shape Treasury appointments. Trump also promises to pardon Ross Ulbricht, the controversial Silk Road creator.
• Immediate Action Post-Inauguration
  The crypto community expects these policies to roll out rapidly, with immediate impact once Trump assumes office.
• Broad Support and Criticism of Current Administration
  Trump’s crypto stance has gained backing from industry giants like Elon Musk and the Winklevoss twins. Meanwhile, the Republican Party’s platform criticizes the Biden administration’s crypto policies, pledging to end what they see as "un-American" crackdowns.
• Election Outcomes Favoring Crypto
  Key election victories, like the defeat of crypto-skeptic Senator Sherrod Brown, strengthen the pro-crypto lobby. However, Elizabeth Warren’s re-election signals continued regulatory debates.
• Long-Term Crypto Strategy
  The crypto super PAC Fairshake has raised significant funds to support pro-crypto candidates in future elections, signaling a long-term strategy to influence U.S. crypto policy.

The latest U.S. elections saw a wave of pro-crypto candidates making their way into Congress, according to Stand With Crypto data. Currently, the House has 257 members who support crypto, compared to 115 who oppose it, while the Senate reflects a narrower divide, with 16 pro-crypto members versus 12 anti-crypto. 

Trump’s pivot has stirred excitement within the crypto world, with many anticipating significant impacts on cryptocurrency adoption, clearer blockchain regulation, and perhaps even a new Bitcoin all-time high under his watch.

Potential Regulatory Changes

Trump’s presidency could bring crypto-friendly policies that reshape digital asset regulations. At the top of his list is the plan to replace SEC Chair Gary Gensler, whose strict enforcement has cost crypto firms over $400 million. Gensler’s potential exit, expected by late 2024, could usher in a more collaborative SEC focused on innovation.

Trump’s plan includes appointing pro-crypto regulators across key agencies. Senator Tim Scott is likely to lead the Senate Banking Committee, driving policies that encourage cryptocurrency adoption. At Treasury, Howard Lutnick, a stablecoin advocate, will help craft regulations that balance innovation with safety.

The Trump crypto impact could extend to regulatory clarity, with plans to replace SEC leadership and streamline policies for stablecoins and other digital assets. His support for self-custody rights further highlights his commitment to empowering individual crypto users.

Legal expert Dave Michaels notes that removing Gensler isn’t straightforward due to SEC protections. However, Trump’s team seems confident in navigating these challenges to prioritize regulatory clarity. Hester Peirce, known for advocating a rules-based approach to crypto regulation, is expected to be a potential replacement for Gensler by market experts like Galaxy CEO Mike Novogratz.

Trump’s push for pro-crypto leadership could transform the U.S. into a hub for digital innovation. If successful, these policies might bring stability to a volatile market and attract long-term investments. 

Global Implications for Cryptocurrency

Trump’s return to the White House could shake up the global crypto scene. With a clear push for cryptocurrency adoption, the U.S. might become the go-to market for blockchain innovation. 

Sharing this same vision with us, Bernstein’s analysts are already predicting a fast-tracked overhaul of crypto regulations. Stablecoins, for instance, could finally get the clarity they’ve been waiting for, making it easier for issuers like Circle and Paxos to thrive. And let’s not forget the SEC—its ongoing battles with Coinbase and Binance might see an abrupt end under new leadership, giving crypto firms some much-needed breathing room.

On a global scale, this shift in U.S. policy could weaken the dollar’s grip as the world’s reserve currency, driving more nations toward crypto as an alternative. If Trump delivers on his promise of a national Bitcoin reserve, we could see a domino effect, with other countries scrambling to do the same. Even nations with strict blockchain regulation may start reconsidering as they watch the U.S. blaze a new trail.

Investor Outlook and Market Predictions

Investors are already recalculating their strategies. The Trump crypto impact is set to reshape investor strategies, with hopes for more institutional adoption and the potential launch of crypto ETFs. Imagine a world where crypto ETFs aren’t just a pipe dream anymore. If this happens, it could open the floodgates for traditional financial giants to dip their toes—or maybe even dive headfirst—into the crypto pool.

Cathie Wood, who’s always got an eye on disruptive tech, believes this shift could supercharge blockchain innovation. She even suggests that the easing of federal constraints could benefit other sectors like AI and renewable energy. But let’s not kid ourselves—crypto is still a rollercoaster. Market volatility won’t vanish overnight, and a sudden policy shift could fuel wild price swings.