As the U.S. election results rolled in, Joe McCann, founder of crypto-focused hedge fund Asymmetric, was glued to his screens in Miami. The excitement was palpable as bitcoin trading surged, fueled by optimism around President-elect Donald Trump’s potential pro-crypto policies.
“When the first polls closed, we started to see massive U.S. buying, and it just hasn’t stopped since,” McCann shared, reflecting the community’s elation.
Bitcoin has skyrocketed over 32% since November 5, reaching an all-time high of more than $91,000. Traders anticipate Trump’s administration will introduce a favorable regulatory environment, revitalizing the cryptocurrency market after months of sluggish performance.
A Surge in Crypto Activity
The trading frenzy is evident. On Binance, the world’s largest crypto exchange, average daily bitcoin trading volume nearly doubled, hitting $493 million between November 6 and 13. Coinbase saw a threefold increase in volumes, averaging $108 million per day, according to Kaiko data.
U.S.-listed bitcoin ETFs experienced record inflows of $1.43 billion on November 7, highlighting institutional investors’ growing interest, CoinShares reported.
Despite the euphoria, experts are urging caution. Coinglass’ bitcoin “fear and greed” index sits firmly in “greed” territory, signaling potential market pullbacks.
“Even the most connected investors are unsure whether Trump’s administration will adopt balanced regulation, a Wild West approach, or ignore crypto altogether,” said Matthew Graham, managing partner at Ryze Labs.
Crypto Market Hits $3 Trillion Milestone
Bitcoin’s surge isn’t the sole highlight. The broader cryptocurrency market soared to a record $3.16 trillion in value, according to CoinGecko. Ethereum climbed 32% since the election, while decentralized finance (DeFi) tokens reached a five-month high of $93 billion.
The derivatives market is also buzzing, with open interest surpassing $102 billion, Coinglass data revealed. Bitcoin’s annualized 30-day volatility spiked to 58%, its highest since September, underscoring a volatile yet promising market.
Awaiting Regulatory Clarity
While optimism abounds, the lack of concrete details regarding Trump’s stance on crypto leaves investors guessing. All eyes are on the appointment of the next U.S. Treasury Secretary, with candidates like Howard Lutnick and Scott Bessent viewed as potential crypto advocates.
Ryan Lee, chief analyst at Bitget Research, advises traders to remain cautious. “The appointment could trigger short-term speculation and sudden market pullbacks,” he noted.
Conclusion
The crypto market’s rapid growth reflects its resilience and adaptability. However, volatility remains a significant factor. Whether Trump’s administration ushers in a crypto renaissance or maintains the status quo will shape the next chapter of this financial revolution.
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