The election of Donald Trump as the 47th president of the United States sent shockwaves through the cryptocurrency market in the past 24 hours as Bitcoin climbed to a new all-time high, while crypto ETFs and crypto-stocks soared amid fresh industry optimism.
A win for the pro-crypto candidate was widely expected to trigger a surge in the valuation of Bitcoin and the broader cryptocurrency market, and the effect of Trump’s win was reflected immediately on crypto financials across the board.
Bitcoin, Ethereum, Altcoins Surge
Bitcoin ascended to a new all-time high late on Nov. 7, rising from $73,248 to $76,203 throughout the course of the day - an increase of 4.03%.
The new all-time high coincided with a 162% surge in Bitcoin trade volume, as over $118 billion exchanged hands in the 24 hour period - up from $45 billion earlier in the day.
Ethereum appeared to benefit even more from Trump’s win, gaining 10.9% in the past day, climbing from a valuation of $2,594 to $2,877.
Tokens related to the decentralized finance (DeFi) space saw a significant increase, with Lido DAO (LDO), Aave (AAVE), and Maker (MKR) gaining 22%, 17%, and 14%, respectively. Dogecoin (DOGE) gained 23%, climbing from $0.1721 to $0.2118 before cooling off and reverting back to the $0.19 level.
Blackrock Bitcoin ETF Breaks Volume Records
Rising trade volume on crypto exchanges was matched by trade volume on the Blackrock Bitcoin Exchange Traded Fund (ETF) on Nov. 6, as the iShares Bitcoin Trust (IBIT) was subject to $4.1 billion worth of trades - the highest ever recorded.
Eric Balchunas, Bloomberg’s senior ETF analyst, pointed out that the ETF’s daily volume was higher than that of popular stocks like Netflix and Visa. Eric posted on X:
$IBIT just had its biggest volume day ever with $4.1b traded.. For context that's more volume than stocks like Berkshire, Netflix or Visa saw today. It was also up 10%, its second best day since launching. Some of this will convert into inflows likely hitting Tue, Wed night.
The total trade volume for the 10 Bitcoin ETFs currently operating stood at $6 billion on Nov. 6, with many funds recording double their average volume numbers, Balchunas explained.
The group of bitcoin ETFs did $6b, their best day since the crazy early days. Most of the ETFs did 2x their average. Just an all around banger day for an infant category that never ceases to amaze. pic.twitter.com/gxAZPEJe9i
— Eric Balchunas (@EricBalchunas) November 6, 2024
Crypto Stocks Soar
Donald Trump’s sweeping presidential win also made an immediate impact on the stock market, with major crypto-related firms posting double digit gains on Nov. 6.
The valuation of cryptocurrency exchange Coinbase Global (COIN) climbed 32%, rising from $193 per share to $256. Meanwhile, Robinhood Markets (HOOD) surged 19.6% on the day, and Microstrategy (MSTR) increased by 13%.
During the election campaign Donald Trump pledged that the U.S would come to dominate the Bitcoin mining industry and ensure that the remaining supply was mined in the U.S.
Trump’s win was clearly received as a sign of support by the Bitcoin mining industry as the stocks of numerous mining firms soared following the election results.
MARA Holdings (MARA) gained 19.6%; Hut8 (HUT) gained 11.05%; CleanSpark (CLSK) gained 23%; and Riot Platforms (RIOT) gained 26%.
Biggest Bull Run in Crypto History?
Market observers have drawn parallels between the current market landscape and that of the bull-run which occurred during Trump’s first term in office.
Between the date of Trump’s election in 2016 and the peak of 2018’s bull-run, the value of Bitcoin increased by 5,025% - climbing from a spot price of $380 to $19,475.
Popular crypto trader, Ash Crypto (@ashcryptoreal), pointed out to his 1.2 million followers that the surge of 2018 occurred even while Trump himself was still very much a crypto-cynic.
“This time he’s pro-Bitcoin and pro-crypto,” Ash wrote in the hours leading up to the announcement of the election results. Ash said:
So if he wins today, be prepared for the biggest bull-run in crypto history.
Indeed, the increase in young male voters who helped elect Donald Trump this time around has in part attributed to Trump’s embrace of digital asset technology.
The full endorsement and enthusiasm of a sitting U.S president is a level of support that Bitcoin and the wider crypto industry have never experienced.
Any FUD (fear, uncertainty and doubt) that previously surrounded the digital currency arena will have been lessened by Trump’s vocal support, and history has no precedent with which to assess just how far this support could carry Bitcoin and crypto.
🚨Prediction🚨
— Anonymous | Crypto Predictions (@Crypto_Twittier) July 22, 2023
My Nov/Dec 2025 price prediction for #Bitcoin
- ETF Approval Range $131,000 - $158,000
- Without ETF Approval $108,000 - $114,000 pic.twitter.com/VBHIpzidrg
Will Trump Deliver on Crypto Promises?
Of course, many politicians have made promises during the campaign trail only to conveniently forget about them later (drain the swamp, anyone?) The coming months will reveal just how serious Donald Trump is about keeping his Bitcoin promises, and given how reactive the crypto market proved to be in the past 24 hours, we can expect to see fireworks no matter which way Trump’s judgement falls.
Kataryna Habeliia
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