Cryptocurrency markets surge on election night
Cryptocurrency markets saw significant gains late Tuesday as investors responded to expectations that Donald Trump would win the U.S. presidential election. As a result of this knowledge, the price of Bitcoin quickly increased and reached an all-time high of approximately $75,000. Bitcoin It had previously peaked at $73,000 in March, but ongoing election-related anxiety has caused it to trade below that level recently. The sharp increase shows how political events can have a significant impact on cryptocurrency valuations, especially when laws and regulations change.
Source: CoinMarketCap
Over the summer, Trump and Republicans publicly supported cryptocurrencies, with strong support from the industry. The funding comes after years of industry dissatisfaction with the Biden administration’s restrictive policies. Many cryptocurrency creators and investors believe that the regulatory framework under Democratic leadership has hindered innovation and industry expansion. As Trump and the Republican Party adopt a more pro-crypto stance, industry players have come together in hopes that the incoming administration will relax rules and create an environment more encouraging of cryptocurrency development.
As Bitcoin gains popularity, cryptocurrency advocates celebrate on social media. . Gensler is a controversial figure in the Bitcoin space, as many executives accuse him of limiting expansion through cumbersome rules. A possible shift in leadership at the U.S. Securities and Exchange Commission could herald a new era for the cryptocurrency industry, bringing with it regulations that promote expansion and loosen restrictions on digital assets. The possibility of Gensler resigning gives cryptocurrency fans more reason to be optimistic.
Away from the presidential race, crypto-supporting Republican Bernie Moreno won an Ohio Senate seat, defeating Democratic incumbent Senator Sherrod Brown. Due to Moreno’s enthusiastic support of digital assets, the crypto industry donated tens of millions of dollars to his campaign. Brown previously served as chairman of the influential Senate Banking Committee and is known for his anti-cryptocurrency views. His defeat is a clear sign that U.S. politics’ stance on cryptocurrencies is changing. With Moreno’s victory, the cryptocurrency industry has another congressional partner who may support policies that benefit the industry and exempt it from restrictive laws.
Additionally, as Trump’s prospects seemed to increase throughout election night, crypto-based prediction market Polymarket gained validation. In the weeks leading up to Election Day, platforms kept predicting a Republican victory. At the start of Election Day, Polymarket had 58% predicting Trump would win, but as the results came in, that jumped to 90%. Polymarket’s prediction of election results demonstrates the promise of blockchain-based prediction markets. For many, it highlights how decentralized platforms can be used to monitor election patterns and public opinion.
Many other cryptocurrencies also saw gains following the results. The novelty cryptocurrency Dogecoin saw the biggest gains, rising more than 20%. Tech tycoon and long-time Dogecoin supporter Elon Musk is largely responsible for Dogecoin’s sudden rise. Musk recently made an interesting statement, saying that the Trump administration will establish a Department of Government Effectiveness (DOGE). The pro-crypto sentiment of this election and this interesting statement increased the value of Dogecoin and strengthened Musk’s control over its appeal.
