SINGAPORE: The global cryptocurrency market has surged past $3 trillion following Donald Trump’s election as U.S. president, raising hopes for favorable U.S. regulation that could drive sector-wide growth.
The total market value of cryptocurrencies rose to nearly $3.2 trillion on Nov. 14, according to CoinGecko data, surpassing its 2021 peak when pandemic stimulus fueled a speculative boom. This rally marks a turnaround from recent months of flat trading volumes and subdued sentiment.
Bitcoin, the market’s frontrunner, reached an all-time high of $93,480. “Bitcoin typically makes the first move, followed by a capital rotation into altcoins,” said Matthew Dibb, Chief Investment Officer at Astronaut Capital. Trump’s win, along with several pro-crypto lawmakers joining Congress, has eased some regulatory concerns, boosting investor confidence. Since the Nov. 5 election, Bitcoin has jumped 30 percent to $90,000, while ether gained 33 percent to $3,220. Meanwhile, Dogecoin—favored by Trump ally Elon Musk—has surged 140 percent.
Rising interest in crypto exchange-traded funds (ETFs) also points to greater institutional participation, as firms often prefer ETFs over direct cryptocurrency holdings. “Reaching $100,000 by year-end now seems feasible,” said Carl Szantyr, founder of Blockstone Capital.
Despite this rally, the crypto market remains small compared to traditional asset classes like gold, valued at $19 trillion, and the S&P 500 at $50.6 trillion.
While some segments remain cautious—non-fungible token (NFT) prices have yet to fully recover—industry leaders say momentum is growing. “There’s increasing interest in DeFi and blockchain solutions,” said Danny Chong, co-founder of Tranchess. Sustained growth could deepen focus on themes like asset tokenisation and blockchain-based payments.
__Reuters
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