Crypto Rallies as Trump Emerges Victorious

Donald Trump's victory at the polls, which saw him secure both the Electoral College and popular vote, has sparked a remarkable surge in digital asset prices, with Bitcoin reaching an all-time high above $76,000, and the broader crypto market capitalization soaring by 4.5% to $2.54 trillion, per CoinMarketCap data.

The S&P 500 also had it's best post-election day in history, closing 2.5% higher and bringing its year-to-date growth to 29%.

Pro-Crypto Turnaround

After a year of pivoting on his stance towards digital currencies, Trump’s victory has been interpreted as a major win for the crypto industry. While previously known for his skepticism about Bitcoin, Trump has reversed course in recent months, vowing to make the US a global leader in crypto innovation. His campaign proposals, which included creating a strategic Bitcoin reserve, pardoning Silk Road founder Ross Ulbricht, and removing SEC Chairman Gary Gensler, have struck a chord with crypto enthusiasts eager for regulatory clarity.

I hope @SECGov understands what has happened tonight. On many, many issues, the voters said loud and clear that they want change. Crypto is no exception.

Stop suing crypto. Start talking to crypto. Initiate rulemaking now. There's no reason to wait.
— paulgrewal.eth (@iampaulgrewal) November 6, 2024

“I hope the SEC understands what has happened tonight,” said Coinbase chief legal officer Paul Grewal on X, following the election results. “On many, many issues, the voters said loud and clear that they want change. Crypto is no exception. Stop suing crypto. Start talking to crypto. Initiate rulemaking now.”

Bitcoin Breaks Records, Coinbase Leads the Charge

Bitcoin’s immediate response to Trump’s win was nothing short of spectacular. The world’s largest cryptocurrency surged past $76,000, marking a new all-time high.

This rally was mirrored in the stock prices of leading crypto companies, with Coinbase, one of the world’s largest cryptocurrency exchanges, leading the charge. The company’s stock, which had closed at $196 before the election, surged by more than 31%, closing at $254. This strong rebound came just a week after a 15% dip following Coinbase’s third-quarter earnings report.

The rally extended to a number of other crypto-related stocks. Shares of Bitcoin mining firms like Cipher Mining saw impressive gains, closing up more than 30%, while stocks of other mining companies such as Riot Platforms, Cleanspark, and Iris Energy surged 20-25%. Even corporate Bitcoin holders like MicroStrategy saw a 13% boost in their share price.

BlackRock’s Bitcoin ETF Sees Record Activity

Adding to the excitement, BlackRock’s IBIT spot bitcoin ETF saw a dramatic spike in trading activity, with over $1 billion in transactions within the first 20 minutes of the regular trading session on the day following Trump’s victory – typically the day's trading volume.

$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 pic.twitter.com/vy2zJBwaHd
— Eric Balchunas (@EricBalchunas) November 6, 2024

The fund, which manages roughly $30 billion in assets, continues to dominate the spot Bitcoin ETF space, attracting investors looking for an easy, regulated entry point into the cryptocurrency market.