Fiona Nanna, ForeMedia News

5 minutes read. Updated 5:27PM GMT Mon, 11nt November, 2024

Cryptocurrencies surged to new heights on Sunday, with Bitcoin hitting a historic milestone of $80,000 for the first time. The flagship cryptocurrency, which has been on a steady upward trajectory, saw its price rise by 4.5%, reaching $79,800.19, according to Coin Metrics. Ether, the second-largest cryptocurrency by market capitalization, also saw impressive gains, rising by 3% and surpassing the $3,000 mark on Saturday. Ether’s price recently touched $3,203.10, adding to the optimism surrounding the digital asset market.

Smaller Coins Soar Amidst Election Euphoria

While Bitcoin and Ether were making headlines, smaller cryptocurrencies saw even more dramatic movements. XRP, the payment-focused coin, surged by 11%, while the decentralized finance token associated with Cardano skyrocketed by 40%. Meanwhile, memecoins like Dogecoin and Shiba Inu experienced gains of 17% and 31%, respectively.

This wave of optimism can be largely attributed to the ongoing developments in the U.S. election, particularly the anticipated second term of President-elect Donald Trump. Trump, who has positioned himself as a strong advocate for cryptocurrency, has promised to make America the “crypto capital of the world.” His pro-crypto stance is reflected in the high-level appointments within his team, many of whom are well-known crypto advocates.

A Pro-Crypto Future Under Trump’s Leadership

According to Alex Thorn, the head of research at Galaxy Digital, the current market trends signal that cryptocurrency is poised to enter a “golden era.” Thorn, in a research note on Friday, highlighted the significant influence Trump’s pro-crypto team could have on the future of digital assets. “The pro-crypto nature of his team, family, and donors increases the likelihood that Trump follows through on his campaign promises to the industry,” Thorn remarked.

One of the key benefits for Bitcoin and other digital assets under Trump’s leadership is the potential for favorable regulatory changes. Bitcoin, considered a safe asset regardless of the outcome of the election, remains non-security classified by the U.S. Securities and Exchange Commission (SEC). However, Trump’s administration has shown interest in Bitcoin by suggesting the idea of a national bitcoin reserve and pushing for all Bitcoin mined within the United States to be kept domestically.

Ether Set to Gain from Crypto-Friendly Regulatory Environment

While Bitcoin is seen as a safe haven, it is Ether and other altcoins that stand to gain the most from the crypto-friendly regulatory environment that Trump’s administration has promised. Many in the cryptocurrency industry are hopeful that proposed changes to regulations—such as the distribution of staking rewards from Bitcoin ETFs—will lead to further growth for digital assets.

Thorn also suggested that over the next two years, Bitcoin and other digital assets could experience significant price increases, noting, “What was once an oppressive headwind in the world’s largest capital market will now shift to a tailwind, and no one is bullish enough.” Bitcoin and Ether have already experienced notable price growth, with Bitcoin gaining 18% and Ether rising by 32% since the election day.

Coinbase, a leading cryptocurrency exchange, has also benefitted from the election results, seeing a remarkable 48% increase in its stock price last week, marking its best week since January 2023.

Crypto Investors Ride the Election Wave

As cryptocurrencies continue to soar, investors are eagerly watching for what’s next in the evolving digital asset landscape. With favorable regulatory changes on the horizon and continued enthusiasm for Bitcoin, Ether, and other altcoins, it’s clear that the crypto market is entering a new chapter.

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