Bitcoin Hits New All-Time High As Donald Trump Wins Second Term: What Now?

Bitcoin (CRYPTO: BTC) surged to a new record high, touching $75,358 during early Wednesday trading in Europe and surpassing its previous peak of $73,737 from Mar. 14, as Donald Trump beat Kamala Harris to win the 2024 election.

Although it later pulled back slightly to $73,879, the cryptocurrency maintained a strong 6.7% gain over the last day, according to CoinGecko data.

In contrast, Ethereum (CRYPTO: ETH) showed more modest activity, trading at $2,618 and remaining 46% below its all-time high of $4,878 from November 2021.

The ongoing momentum has largely favored Bitcoin as the asset draws heightened interest amid a positive regulatory outlook following the U.S. election.

U.S. Election Sparks Renewed Optimism For Crypto Investors

The market's rally follows the election results, with President-elect Donald Trump's pro-crypto stance and the support of new crypto-friendly policymakers driving enthusiasm.

In a note sent to Benzinga, Samir Kerbage, CIO at Hashdex, emphasized that the election results were a positive development for the crypto industry.

"We've been conveying to clients in recent months that the U.S. election, regardless of the specific outcome, will be a net positive for crypto investors," he noted. "Yesterday's results were ideal given the pro-crypto stance of President-elect Trump and many newly elected policymakers."

Bitcoin's swift rise reflects the anticipation that Trump's administration will appoint key figures supportive of the industry, which could lead to favorable policy shifts.

"In the last 24 hours, Trump's support for Bitcoin and the crypto industry is already impacting prices," Kerbage said. "This history, along with Bitcoin's typical post-halving outperformance and ongoing institutional adoption, sets the asset class up for a strong 2025."

Also Read: What The Election Outcome Means For Bitcoin’s Near-Term Price Action

Bitcoin Drives Market Cap Surge As Euphoria Spreads

Bitcoin's momentum also fueled the overall cryptocurrency market, pushing its total capitalization up by 7% to $2.45 trillion within a day, briefly peaking at $2.48 trillion.

Alex Kuptsikevich, FxPro‘s chief market analyst, told Benzinga that Bitcoin’s is a key driver of the rally.

He noted that the rally remains within a rising channel established since September, with indicators suggesting further upside potential.

Meme coin Dogecoin (CRYPTO: DOGE) also saw a significant boost, rallying 55% from early November lows.

Kuptsikevich attributes part of Dogecoin’s jump to speculation about Elon Musk's possible role in the new administration, as Musk has long been a proponent of the coin.

Navigating U.S. Crypto Regulation: Calls For A Balanced Framework

Despite the positive sentiment, experts stress the need for clear regulatory direction in the U.S.

Anthony Yeung, Global Head of Strategic Development at CoinCover, cautioned that while Trump has promised to make the U.S. the “crypto capital” of the world, the specifics of his regulatory plans remain uncertain.

"The details of his plans are yet to be seen, and it will take time to understand his full stance," Yeung explained. "It's in the interest of the industry that the U.S. moves sooner rather than later when it comes to crafting a regulatory framework."

Yeung warned that delays in U.S. regulation could allow the EU's MiCA legislation to set global standards.

"If the U.S. continues to govern by enforcement without clear guidelines, there's a risk it will lose influence over shaping the regulatory landscape in coming years," he added, advocating for a framework that balances innovation with consumer protection.

Future Of Crypto Looks Strong Amid Political Shifts

Looking forward, experts anticipate a strong year for digital assets, supported by Bitcoin's post-election history and favorable conditions.

According to Kerbage, "In the six months following the last three presidential elections, Bitcoin has seen triple-digit returns."

He expects this trend to continue, driven by Trump's potential crypto-friendly appointments and a Congress that is more supportive of digital assets than ever before.

However, he advises caution amid short-term uncertainties, acknowledging the need for a strategic regulatory framework to sustain growth.

Investors and enthusiasts can look forward to deeper discussions on these trends at Benzinga's Future of Digital Assets event on Nov. 19, where prominent voices in the sector will explore the potential impact of policy changes, the future of digital asset adoption, and strategies for navigating market volatility.

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Image created using artificial intelligence with Midjourney.

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