Bitcoin tops $76,000 as Trump’s election win sparks bullish crypto wave

The world's biggest cryptocurrency Bitcoin (BTC) continues to hit new highs following Donald Trump's historic comeback in the U.S. elections 2024. BTC inched 6.6% up in the past 24 hours to cross $76,000 late Wednesday, extending its 30-day gains to 21% and amplifying optimism across the crypto sector. Currently (11.54 AM IST), Bitcoin has settled to $74,739.94 after dropping 2.28% from an all-time high of $76,480.65, taking its diluted valuation to $1.57 trillion. The second biggest crypto Ethereum, however, has surged up 7.75% in the past 24 hours, trading at $2,825.84, Coindesk data shows.

"This rally aligns with expectations of a bullish era under a crypto-friendly administration. BTC has gained 6.6% in the past 24 hours and over 21% in the last 30 days, supported by rising stablecoin liquidity and increased transaction volumes," homegrown crypto exchange CoinSwitch says in a statement.

The market is now looking ahead to Thursday’s U.S. Federal Reserve decision, with traders anticipating a 0.25% rate cut. "Historically, lower rates benefit risk assets like Bitcoin by weakening the dollar and encouraging investment in alternative assets. Fed Chair Powell’s comments will be closely monitored for any hawkish undertones that could temper market enthusiasm," the statement adds.

According to the latest data on the decentralised prediction market platform Polymarket, which allows users to speculate on the outcomes of real-world events, there's a 97% chance for a 25 bps cut by the Federal Reserve, while 2% say there's a chance of a 50 bps rate cut.

In traditional markets, the "Trump trade" is boosting both stocks and bonds, with the dollar reaching recent highs as expectations build around economic growth and fiscal spending. Meanwhile, IBIT, the iShares Bitcoin Trust, saw a record trading volume of $4.1 billion on November 6, 2024, surpassing even major stocks like Netflix and Visa.

Other Bitcoin ETFs also experienced significant volume, reflecting the strong market momentum. "Despite the bullish environment, volatility is anticipated, especially with the Federal Reserve’s rate decision looming. Traders should remain cautious as the market digests these macro developments," says CoinSwitch.

Vikram Subburaj, CEO of Giottus, says it could be a new start to the next wave of retail and institutional adoption for Bitcoin as well as other top crypto assets. "There is a lot of optimism in the market which will lead to strong inflows into Bitcoin ETFs in the upcoming days. If the US government positions Bitcoin as a strategic reserve asset, we will see many governments including India following suit in the upcoming years. In this context, it is important that India recognises Bitcoin’s growing importance and ensures regulations to support its growth."

Subburaj thinks the path to "$100,000 is now set in this bull cycle". "Key altcoins will catch up post Bitcoin's rally and it will coincide with strong retail adoption similar to November 2021."

Not only Bitcoin but memecoins like DOGE, SHIB, PEPE etc., are doing better than other sets of altcoins. "We continue to advise caution for our investors. Among key altcoins, Solana is being touted as a strong contender to Ethereum’s #2 spot though we predict a strong ETH seasonal rally in Q1 2025," adds Subburaj.

Manhar Garegrat, country head, India & Global Partnerships, Liminal Custody, says the U.S. election outcome holds substantial significance for the virtual digital asset (VDA) industry, potentially marking a pivotal step in global regulatory clarity. "With recent progress in regulatory frameworks like MiCA in the EU, MAS in Singapore, and FSP and VARA in the Middle East, the U.S. is now poised to set a new standard."

Garegrat thinks supportive candidates could drive the rapid development of clear, favourable regulations, energising the U.S. market and instilling confidence in institutional investors globally. "Such regulatory clarity would be transformative, fostering an innovative and sustainable ecosystem for the VDA sector worldwide."