Key Points
- The total cryptocurrency market capitalization has surged to a five-month high of $2.47 trillion.
- Donald Trump’s election win and a pro-crypto SEC, Senate, and White House have fueled bullish sentiment in the crypto industry.
The total cryptocurrency market capitalization has experienced a significant increase, reaching a five-month high above $2.47 trillion. This surge is attributed to traders’ reaction to the recent US Presidential election results.
In a span of 24 hours, the total market capitalization increased by over $231 billion. The market cap stood at its highest level since June, with Bitcoin (BTC) and most altcoins edging higher.
Market Conditions and Influences
This widespread gain was paired with rising volatility, resulting in substantial liquidations in the derivatives market. More than $380 million was liquidated from the cryptocurrency market in the past 24 hours, with short sellers bearing the brunt of the losses.
The crypto fear and greed index also rose to 77, indicating “extreme greed”. The main factor driving these gains is the US Presidential election, with pro-crypto candidate Donald Trump emerging victorious.
Trump’s promises to the US crypto community, such as establishing a Bitcoin strategic reserve and replacing the Chair of the US Securities and Exchange Commission (SEC), have instilled confidence in investors. The crypto community is eagerly anticipating the fulfillment of these promises.
Response from the Crypto Community
Brad Garlinghouse, the CEO of Ripple, suggested that Trump should change the SEC leadership, push for a pro-crypto bill, and clarify Ethereum’s status as a non-security within his first 100 days.
Cameron Winklevoss, co-founder of Gemini, also expressed optimism about the crypto industry’s growth under Trump’s administration. He believes that the industry will benefit from crypto-friendly policies.
There was a noticeable surge in activity around US-listed crypto exchange-traded funds (ETFs) on the election day. Data revealed that the total volumes traded for Bitcoin ETFs reached $6.07 billion, the highest level since March.
The total inflows to Bitcoin ETFs also hit $621 million, marking the highest level in one week. Ethereum ETFs experienced their best day since September with $52 million inflows, pushing the price of ETH to a two-month high above $2,800.
The bullish wave has also positively impacted crypto stocks. For instance, Coinbase (COIN) gained by 31% to $254, its highest level since July, while MicroStrategy saw a 13% gain.
