Crypto Equities Surge More Than 10% as U.S. Political Uncertainty Diminishes with Trump Victory

As a seasoned crypto investor who has weathered several market cycles, I must say that the recent surge in U.S. crypto equities is reminiscent of the dot-com boom of the late 90s. The parallels are uncanny – a groundbreaking technology disrupting traditional markets, skyrocketing prices, and a political climate that could potentially shape the regulatory landscape.

US cryptocurrency stocks rose in early trading as bitcoin (BTC) climbed above $75,000 amid speculation that Donald Trump was likely to win the U.S. presidency. This prediction became a reality when Trump garnered over 270 electoral votes, securing his victory.

In simple terms, MicroStrategy, the company with the most bitcoin holdings among corporations, increased by 12%, getting close to $255 and nearing its all-time high. This growth represents a staggering 280% increase for the year. Similarly, Coinbase and crypto miner Riot Platforms both saw a 12% rise, as did other miners such as Marathon Digital Holdings (up by 11%) and IREN (with a 12% gain).

Another notable contender is Metaplanet, based in Tokyo, replicating Microstrategy’s approach of acquiring bitcoin, which witnessed a 24% surge. This investment advisor has soared over 1,100% this year alone. CEO Simon Gerovich announced a staggering trading volume of approximately 11.63 billion yen ($76 million). This announcement follows Semler Scientific (SMLR), another bitcoin investor, experiencing a 30% rise in its stock price the previous day.

As a market analyst, I find myself observing an intriguing trend. Namely, Tesla, led by CEO Elon Musk who publicly endorsed Donald Trump during the elections and has expressed enthusiasm towards cryptocurrencies, experienced a significant surge of approximately 15%. This growth suggests that investor sentiment regarding these associations may be playing a role in Tesla’s current market performance.

In light of the election’s unpredictability – with both candidates appearing to have similar levels of support according to polls – Andre Dragosch, head of European research at Bitwise, suggested that potential pro-crypto regulation under a Trump presidency could serve as a fresh trigger for another cryptocurrency market rally.

As an analyst, I posit that a more crypto-friendly approach from U.S. regulators could potentially unlock a wider array of investment avenues, such as ETFs. Currently, there are numerous spot crypto ETF applications pending approval from the SEC, including those focused on Solana and XRP. If this pro-crypto stance materializes, cryptoasset service providers may experience reduced regulatory oversight, possibly marking the end of ‘Operation Chokepoint 2.0’.

In most cases following U.S. elections, Bitcoin has tended to show strong performance, irrespective of the election’s result, according to the statement.

Given these developments, it’s reasonable to expect that if Trump wins, it could spark a rapid increase in the price of bitcoin and other cryptocurrencies. The results of the recent U.S. election suggest a stronger pro-crypto sentiment in America, which might speed up the widespread acceptance of digital currencies.