Crypto market rallies on Trump’s crypto promises and a wave of pro-crypto candidates securing office
The price of Bitcoin rose to a new all-time high of $82,371 on Monday, boosted by investor optimism over Donald Trump’s pro-crypto stance.
Trump’s November US Presidential Election victory has fuelled hopes of a more favorable regulatory climate for digital assets, sparking rallies across the market.
“The cryptocurrency market is entering a golden era,” said Alex Thorn, head of research at Galaxy Digital, in a research note last Friday.
“Trump has vowed to make America the ‘crypto capital of the world,’ and his team is full of strong crypto advocates. The pro-crypto nature of his team, family, and donors increases the likelihood that he will deliver on these campaign promises.”
Other digital assets also saw sharp gains in the past week. Ethereum rose 30% to $3,215, and Ripple’s XRP also jumped 14%.
Meme coins have also continued the trend. Shiba Inu is up more than 50% since last Monday, while Dogecoin gained over 85%, showing a growing appetite for high-risk investments.
Pro-crypto candidates gain ground in the US
Trump’s election win was accompanied by victories for pro-crypto candidates in several congressional races.
In Ohio, anti-crypto lawmaker Sherrod Brown lost his seat. Meanwhile, crypto advocates won positions in Michigan, North Carolina, and Alabama, signaling a stronger legislative push for cryptocurrency-friendly policies.
“With Republicans on the cusp of taking the House, the market is responding to the belief that deregulation for digital currencies is coming,” said Matt Simpson, senior market analyst at City Index.
“Crypto investors see an opportunity to benefit from a political shift in Washington.”
Industry anticipates regulatory shift
Trump’s administration is also expected to replace SEC Chair Gary Gensler, a move that could ease enforcement actions against crypto companies.
Since the start of his tenure in February 2021, Gensler has led a series of high-profile crackdowns, showcasing what has been called a “lack of long-term vision” on crypto. However, Trump’s campaign promises suggest that a more relaxed approach may soon prevail.
In addition to promising a crypto-friendly regulatory environment, Trump has proposed ambitious ideas, such as building a national Bitcoin reserve.
Analysts believe such policies could attract significant capital to the crypto space and drive even higher valuations.
