Bitcoin (BTC) has reached a new all-time high, closing at $88,701 on Monday, marking a 28% surge since the United States presidential election last week. This price surge has contributed to a sharp increase in the global cryptocurrency market capitalization, which now stands at $2.96 trillion, approaching the $3 trillion mark.
The rally in Bitcoin prices follows an expected shift in U.S. policy under President Donald Trump, who has signaled strong support for the digital asset market. Since Trump’s win, Bitcoin has climbed nearly 28%, from $69,000 on November 5 to its recent peak. At the time of writing, the cryptocurrency was trading at $87,173.81.
Crypto Market Capitalization Hits $2.96 Trillion
The surge in Bitcoin has been accompanied by a broader boost in the cryptocurrency market, with the total market cap rising by nearly 28% to $1.76 trillion on November 11 from $1.37 trillion on November 5, according to CoinMarketCap data. The spike is attributed to optimism about Trump’s pro-business stance, which has raised expectations of a more favorable environment for cryptocurrencies.
During his 2024 presidential campaign, Trump made a significant shift in his approach to cryptocurrency. While previously skeptical of digital currencies, the former president promised to reduce regulatory barriers, provide cheaper energy for crypto mining, and establish the U.S. as the “crypto capital of the planet.” These policy proposals have ignited investor confidence, with many speculating that Bitcoin could soon reach $100,000 before the year ends.
Trump’s Pro-Crypto Agenda Boosts Investor Confidence
Financial analysts have noted that the rally in Bitcoin mirrors previous instances during Trump’s presidency, such as the 2020 surge following COVID-related stimulus measures. According to Oladayo Adenubi, a financial analyst, Trump’s expansionary fiscal policies, particularly tax cuts, were favorable for risk assets like cryptocurrencies.
Furthermore, the U.S. Securities and Exchange Commission (SEC) under outgoing President Joe Biden has been viewed as less crypto-friendly, with policies that have created uncertainty and stifled growth. In contrast, Trump’s proposed regulatory framework has bolstered investor sentiment.
Bidemi Oke, CEO of FlashChange, a digital asset solutions platform, echoed this sentiment, stating that Trump’s pro-business policies are driving optimism in the market. “The market has reacted positively, with a rally in crypto and other asset classes,” Oke said, adding that the resolution of the election uncertainty has allowed investors to make more informed decisions about the economic outlook.
Industry Leaders Predict Global Growth for Crypto Under Trump
Obinna Iwuno, president of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), highlighted that Trump is positioning himself as the most crypto-friendly president in U.S. history, signaling significant growth potential for the industry. “This could lead to greater adoption of cryptocurrencies globally, with more institutional investment, and possibly the U.S. taking the lead in the global crypto ecosystem,” Iwuno noted.
U.S. Federal Reserve Rate Cuts and Global Market Impact
One day after the election, the U.S. Federal Reserve announced a rate cut, reducing its benchmark interest rate for the second time this year. The move, which brings the rate to between 4.50% and 4.75%, is part of a broader strategy to address inflation. Following the cuts, U.S. Treasury yields have fallen, making emerging and frontier markets, including Nigeria, more attractive to investors seeking higher returns.
In contrast, Nigeria has seen its benchmark interest rates rise sharply in 2024, with the Central Bank of Nigeria (CBN) raising rates by 850 basis points to 27.25%. This policy divergence has led to a surge in interest from global investors in Nigeria’s fixed-income market, with T-bill subscriptions reaching a record N33 trillion between January and October 2024, up 94% from the previous year.
Nigerian Investors Eye Fixed-Income Opportunities Amid Global Trends
Oluwaseun Magreola, head of Investment Management at STL Asset Management, pointed out that while Nigeria remains classified as a frontier market, the gap in interest rates between the U.S. and Nigeria has attracted significant capital inflows into Nigerian treasury bills and Open Market Operation (OMO) bills. This trend is expected to continue as global investors seek higher yields in emerging markets.
As both the crypto and fixed-income markets react to shifting U.S. economic policies, experts are closely monitoring how these developments will impact global investment flows, with many anticipating continued volatility and growth in the digital asset space.
Outlook: Bitcoin and Beyond
With Trump’s administration providing clearer signals of support for cryptocurrencies, Bitcoin and other digital assets are expected to see further price rallies in the short term. Analysts are watching closely for further policy developments and market reactions as the U.S. embraces a more crypto-friendly stance.