Market commentary
The crypto markets received a significant boost last week with the victory of presidential candidate Donald Trump. On the day of the election results, the bitcoin price surged to a new all-time high of $75,000. The president-elect's crypto-friendly agenda promises a much friendlier environment for digital asset markets over the next four years. The post-election surge hasn't slowed down - in fact, it's accelerating. Over the weekend, the price of bitcoin continued to climb, reaching $81,000.
Bitcoin BTC/USD (weekly) / Charts: TradingView
Trump turns U.S. into crypto superpower
For years, there has been regulatory uncertainty surrounding digital assets in the United States. This has held back not only bitcoin, but especially alternative cryptocurrencies ("altcoins"). Projects faced unfounded lawsuits from the SEC, which even gave rise to criticism from within own ranks. Trump has promised to end this coordinated attack on the crypto industry, which some have dubbed Operation Choke Point 2.0. Under him, the United States is expected to become a crypto superpower.
Trump's agenda includes firing SEC chief Gary Gensler, supporting the domestic bitcoin mining industry, removing unfair regulatory barriers, and banning central bank digital currencies (CBDCs), which some in the industry see as a threat to crypto. In addition, Trump wants to create a "strategic bitcoin reserve." This would mean converting $17 billion of confiscated bitcoin into national assets that would no longer be sold. The sharp rise in the price of bitcoin underscores the weight of the upcoming Trump presidency.
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Altcoins gaind ground
Over the past year, bitcoin (BTC) has maintained its lead, with altcoins such as ethereum (ETH) lagging behind - even after an ETF was approved over the summer. Only a few standout performers like Solana (SOL) have been able to keep up with the largest cryptocurrency. Thanks to Trump's election victory, the tide is starting to turn. Over the past seven days, most altcoins have seen stronger gains than bitcoin.
This week's top gainers are Dogecoin (+88.36%), Cardano (+75.45%) and Sui (+69.33%). With the exception of Tron (-0.22%) and Toncoin (+9.42%), all of the top 20 cryptocurrencies posted double-digit percentage gains for the week. Ethereum outperformed Bitcoin's rise with +28.09% compared to +18.38%, although the second largest cryptocurrency still lags behind on a year-over-year basis.
Disclaimer
All information in this publication is provided for general information purposes only. The information provided in this publication does not constitute investment advice and is not intended as such. This publication does not constitute and is not intended as an offer, recommendation or solicitation to invest in any financial instrument, including cryptocurrencies and the like. The contents contained in the publication represent the personal opinions of the respective authors and are not suitable or intended as a basis for decision-making.
Risk notice
Investing in cryptocurrencies, is fundamentally associated with risk. The total loss of the invested capital cannot be excluded. Cryptocurrencies are very volatile and can therefore be exposed to extreme price fluctuations in a short period of time.
