optimism after Trump’s victory is exceptional
The victory of Donald Trump in the recent US presidential elections has caused a real stir in the cryptocurrency segment. Bitcoin has been setting all-time records in recent days, and other cryptocurrencies are rising even more.
Bitcoin approaches $90,000. After months of relative calm, Bitcoin’s evolution has become turbulent since Trump’s victory. The cryptocurrency has gained 30.68% in recent days and set consecutive all-time highs, according to CoinMarketCap. Those $73,800 of March 2024 are now behind us and Bitcoin is currently on the verge of surpassing $90,000.
Trump and unbridled optimism. During the election campaign, Donald Trump made a number of promises to the crypto industry. As CNBC notes, he highlighted a comment he made about making the US the “cryptocurrency capital of the planet.” He even insisted that the country become a strategic national reserve for Bitcoin.
Other cryptocurrencies are infected with Bitcoin. The gains in recent days have been across the board, with Ethereum, the second-largest by market capitalization, for example, up slightly more than Bitcoin over the past seven days: 38.69%. Its all-time high of $4,635 was reached in November 2021 and is currently around $3,370. Cardano (up 85.25% in the last seven days), Solana (36.34%) and many others have seen similar gains.
But dogecoin is especially popular. One of the biggest beneficiaries of Trump’s victory has been dogecoin, which has surged 143.59% over the past seven days, from $01.679 where it was set a week ago to now sit at $0.41. Its instant all-time high (especially abnormal and very short) in May 2021 was $0.65.
The value of the 10 largest cryptocurrencies by market valuation at the moment. The most striking data is its growth over the past seven days (column “7d”). Source: CoinMarketCap
Elon Musk, main character. The tycoon was Trump’s main supporter on the campaign trail. At one of the candidate’s events, Musk accompanied him, and there they talked about a new project in the form of a “Department of Government Efficiency”, which they called DOGE – by analogy with the symbol of the dogecoin token. This already caused the price of the cryptocurrency to rise a few weeks ago, but now its value has increased. Meanwhile, Tesla also soared in the stock market and allowed Musk to amass the largest fortune ever seen.
fever returns. The extreme volatility that cryptocurrencies are once again suffering from is reminiscent of times past when Bitcoin continued to rise in value at a breakneck pace. Companies like Coinbase, which are closely tied to Bitcoin, are logically rising in the stock market. Other companies, such as MicroStrategy, which has already focused its activities on buying more and more bitcoins, have backed up this bet: in recent days, the company just purchased 27,200 bitcoins, worth about $2 billion.
Excellent care. As in past times when cryptocurrency volatility was extreme, these exceptional gains may be followed by equally sharp declines. Consider, for example, how after the rallies of 2021, 2022 became a truly terrible year for cryptocurrencies, and those who joined the rush late ended up losing a lot of money.
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