As the cryptocurrency market continues its strong rally, Bitcoin reached the milestone of $80,000 for the first time on Sunday. According to Coin Metrics, Bitcoin’s price rose by 4.5%, hitting $79,800.19, with Ethereum also up 3% to $3,203.10. Following Trump’s re-election and the optimism surrounding his crypto-friendly stance, smaller cryptocurrencies posted even stronger gains: XRP surged by 11%, Cardano’s DeFi token jumped 40%, and meme coins Dogecoin and Shiba Inu rose by 17% and 31%, respectively.
Trump’s Policies Boosting the Crypto Market
Trump’s campaign promises to make America the “crypto capital of the world” have fueled positive sentiment in the market. Alex Thorn, head of research at Galaxy Digital, stated in a recent report that Trump’s close team includes prominent crypto advocates, suggesting a supportive policy environment for digital assets. Thorn predicts that over the next two years, Bitcoin and other digital assets could see significantly higher trading prices as a result of this favorable climate.
Trump’s stance on Bitcoin has also bolstered investor confidence. He has floated the idea of creating a national Bitcoin reserve and has discussed policies to keep all mined Bitcoin within U.S. borders. Additionally, Bitcoin’s classification as a non-security by the SEC makes it an appealing safe asset for risk-averse investors, further driving its price increase.
Promising Outlook for Bitcoin, Ethereum, and Other Digital Assets
Since election day, Bitcoin has gained 18%, and Ethereum has surged by 32%. With the expectation that Trump’s policies may foster a friendlier regulatory landscape, the crypto market outlook remains positive. Analysts believe that in such an environment, assets like Ethereum and other cryptocurrencies could benefit even more than Bitcoin. Many are hopeful that by next year, policy changes will address industry concerns, such as enabling spot Bitcoin ETFs to distribute staking rewards, which could drive further interest from investors.
Thorn believes that what was once a regulatory headwind could soon become a tailwind, propelling growth in the cryptocurrency market. “No one is bullish enough,” he added, emphasizing the untapped potential in the market.
Investor Optimism Fuels Market Performance
The positive sentiment has also bolstered major cryptocurrency exchanges, with Coinbase up 48% last week, marking its best week since January 2023. As Trump’s pro-crypto policy intentions continue to unfold, many investors are eyeing this as a potential “golden era” for digital assets.
In summary, the cryptocurrency market is on an upswing, with Bitcoin’s all-time high attracting new attention. Analysts suggest that if regulatory conditions remain favorable, the market could see an influx of new investors and sustained momentum. The coming months could indeed be transformative for cryptocurrencies, with significant growth on the horizon.
