The first week of November 2024 will surely go down in crypto history. Up to this point, we have seen various institutions, asset managers and even smaller countries endorse Bitcoin. We have the likes of BlackRock, Fidelity, VanEck, multiple billionaires, celebrities and many others showing their support for the cryptocurrency industry.
But on November 5th, the people of the United States decided who would lead the country for the next four years, and that person was Donald Trump. Now, this election marked a lot of “firsts”, but perhaps most importantly for the crypto industry, Trump will be the first US President to be pro-crypto and pro-Bitcoin. And that is important.
Source: AP
Throughout his election campaign, he was incredibly vocal about his support for the industry, making some critical promises. However, what would likely have the biggest implications for the broader crypto field is his vote to remove the current chairman of the US Securities and Exchange Commission. To understand why this is important, you need to know that the SEC, under Gensler, has filed over 100 lawsuits against crypto-focused companies like Coinbase, Kraken, Binance, and many others.
What this means is that the current regime instilled by the Biden administration virtually waged a war on crypto. Companies in the US and abroad were under constant prosecution pressure, which hampered their reach and prospects. Will all this change under Trump? We haven’t seen it yet, but putting in someone knowledgeable and willing to craft meaningful regulations and engage in conversations with industry leaders looking out for the best interest of individual investors would be a breath of fresh air, that’s for sure.
Trump also said that they will create a national strategic stockpile of Bitcoin, promising to keep 100% of the BTC that the United States acquires while also trying to keep BTC mining domestically. This is also incredibly important. It’s one thing for smaller economies like El Salvador to adopt Bitcoin. It’s a whole different ball game for the world’s biggest to endorse him in a meaningful way.
The markets reacted very positively to the news of his election, and it will be interesting to see whether or not this momentum will continue into his inauguration on January 20. Both Biden and Harris have publicly stated that the transfer of power to the administration will be peaceful, so barring any surprises, the tailwinds for the industry are obvious.
Of course, it is now a question of “whether” Trump will follow through on his promises. However, during his election campaign, he accepted millions in crypto donations from companies and industry leaders. If one thing is certain, it’s that the whole community is now hoping that he lives up to his word.
The entire cryptocurrency market is booming, with altcoins popping up left and right. Many analysts have already called this the start of an extended bull market, but we have yet to see how things will pan out.
The industry has never been in a better position, at least in theory, so stay tuned and we’ll keep you posted, as always!
Market data source: Quantify Crypto
Market Cap: $2.69 | 24 Hour Flight: $172 million | BTC Domain: 55.8%
BTC: $76,176 (+8.5%) | ETH: $2,943 (+16.2%) | BNB: $598 (+3.2)
This week’s crypto headlines you can’t miss
2024 US Presidential Election Results: Donald Trump Declares Victory. Perhaps the most important development for the Western world this week became official on Wednesday when the US elected a new president for the next four years, Donald Trump. It will be inaugurated on January 20, and here are some of the major promises it has made for the cryptocurrency industry.
Bitcoin price explodes to new all-time high of $75,000. As Trump’s lead began to become apparent during the early poll results, BTC began to gain traction. It soared past its March all-time high of $73,737 and set a new high of over $75,000.
BTC rally continued as Fed cuts interest rates by 25 basis points. That was just the start of a historic week for bitcoin as the cryptocurrency’s rally continued, culminating at $76,800 (on Bitstamp) on Thursday evening. The latest high came after the US Federal Reserve cut interest rates by another 25 basis points to 4.5%-4.75%.
Institutional investors are back with a record Bitcoin ETF inflow of $1.4 billion. Investors took a cautious approach to BTC ETF allocations before the election, but once the dust settled, they came back in full force. November 7 was a record day, with nearly $1.4 billion in net receipts. BlackRock’s IBIT was in the lead at just over $1.1 billion.
Solana overtakes BNB, climbs to become fourth largest crypto asset by market value. Solana’s native testimony has been one of the best results since Trump’s election. SOL is up more than 21% on a weekly basis and is trading at a multi-month high of just over $200. It also became the fourth largest digital asset by market capitalization after surpassing BNB.
Bitcoin Mining Difficulty Hits New High at 101.6T Ahead of BTC prices surging into uncharted territory, the network’s robustness was once again on display as mining difficulty rise to an all-time high of over 101 trillion. The metric has increased by approximately 15% over the past month, solidifying the security of the blockchain.
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