Bitcoin value surged in the final hours of Thursday, with the cryptocurrency hitting an all-time high. The surge came after former US President Donald Trump won the presidential election against Vice President Kamala Harris.
Bitcoin’s price rose 9% in the past 24 hours, reaching around $76,052.66, after hitting a record high of $76,179.0. Meanwhile, Ethereum gained 11%, while Solana surged 13%. Payments coin XRP also jumped more than 5%.
Meme coins also saw a notable improvement, with Dogecoin gaining around 15%. On the stock front, Coinbase Global Inc (NASDAQ) surged an astonishing 31.11%, marking its best trading day since it began trading on the exchange. MicroStrategy (NASDAQ), the world’s largest holder of Bitcoin, also rose 13%. Overall, the cryptocurrency market is becoming more positive, as Bitcoin and other cryptocurrencies continue to set records. Experts believe that this price increase may be a result of the growing interest in digital currencies as an alternative investment tool amid global economic volatility. According to expectations, this green wave may continue to support the trajectory of digital currencies in the near future.
While Bitcoin benefits from its status as a hedge against inflation, other crypto investors, including Coinbase, are pinning their hopes on the US regulatory environment that may be more supportive of the industry, as Trump promised during his election campaign.
Voters in the recent US elections were concerned about the growing government deficit, which rose by 8% in fiscal year 2024 to reach $1.8 trillion. This large investment clearly reflects the growing influence of the crypto industry on American politics.
Trump’s promises about cryptocurrencies and Bitcoin
Former President Donald Trump pledged to turn the United States into the world’s cryptocurrency capital. If he returns to the White House, he promised to create a strategic reserve of Bitcoin, in addition to appointing regulators who support digital assets. He also stressed the need to strengthen the role of cryptocurrencies in the American economy, considering them a strategic tool for the country’s financial future.
In contrast, Vice President Kamala Harris has adopted a more conservative approach towards this industry. Harris called for the creation of a thoughtful and clear regulatory framework to regulate the cryptocurrency market, while ensuring consumer protection and maintaining financial stability. She stated that regulation does not necessarily mean restricting innovation, but rather ensuring the protection of the market from the risks of regulatory laxity.
Despite these different positions, the cryptocurrency sector has seen an increase in strict laws during the administration of the current President, Joe Biden. There have been many measures aimed at combating illegal activities, such as money laundering and terrorist financing using cryptocurrencies. The current administration has also focused on imposing restrictions on some exchange platforms and currencies that do not comply with applicable financial laws.
Certainly, the regulatory approach differs between Trump, Harris, and Biden, but all of them acknowledge the impact of cryptocurrencies on the global economy. At the same time, policy shifts suggest they could have a significant impact on how the industry evolves in the future.
In Ohio, Republican Bernie Moreno managed to defeat Sherrod Brown, the chairman of the Senate Banking Committee, who had been a vocal opponent of the crypto industry. To make this shift, crypto advocates spent about $40 million to support their candidate and defeat Brown.
Gensler’s Future and the SEC’s Position
Cryptocurrency companies have expressed their dissatisfaction with the ambiguity of regulatory policies during the Biden administration. Gary Gensler, the SEC Chairman, stated that the current rules will remain in place. He also reiterated his position that the sector is rife with fraud and opaque practices. After the market crash in 2022, which saw the bankruptcy of the FTX platform, the commission took several actions against companies operating in the cryptocurrency sector.
If former President Trump wins the election, many analysts expect him to start implementing his promises quickly. This includes removing Gensler from his position on his first day in office, according to Lee Shi, managing director of Aurus in Hong Kong. Some see this move as a step towards a more supportive regulatory environment for the cryptocurrency industry.
On the other hand, cryptocurrencies have seen significant growth during 2024. Bitcoin has risen by 77% since the beginning of the year, outperforming traditional assets such as stocks and gold. The surge was helped by massive inflows into Bitcoin ETFs, which reached $23.5 billion after the funds were launched by major companies. There was also interest in the tax cut promises made by both Trump and Kamala Harris. Many investors believe that Bitcoin can act as a hedge against fiscal and monetary policies that could lead to a depreciation of the dollar and higher inflation.
This remarkable growth reflects the continued growth in interest in digital currencies as an investment vehicle, in addition to the support that they enjoy from major companies. Bitcoin and other cryptocurrencies are expected to continue to attract more investment in the near future.
