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Bitcoin Daily November 7, 2024

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US Crypto Landscape Post-Trump Victory

We analyze recent developments in the US crypto landscape following Donald Trump's 2024 election victory. Key themes and insights from various CryptoSlate and Bitbo News articles are summarized below.

1. Bitcoin Surge and Optimism:

  • Bitcoin reached a new all-time high following Trump's election, solidifying predictions linking his return to bullish crypto cycles.
  • Market analysts at Copper.co predict Bitcoin could reach $100,000 by Inauguration Day based on historical ETF accumulation trends. They state, "A $100,000 Bitcoin is quite possible by the time the 47th US President heads to the Capitol for inauguration on January 20, with ETFs holding approximately 1.1 million Bitcoins.”
  • Increased demand and heightened volatility, with profit volumes in Bitcoin addresses exceeding losses by 47%, further signal potential upside for Bitcoin.
  • BlackRock’s IBIT spot Bitcoin ETF hit $1 billion in trading volume within 20 minutes of trading on the day after Trump won, indicating strong institutional interest.

    • 2. Trump's Pro-Crypto Agenda and Policy Expectations:

    • Trump’s victory sparked hopes for favorable crypto policies, including the potential establishment of a US Strategic Bitcoin Reserve (SBR).
    • A report by The Bitcoin Policy Institute argues that an SBR could enhance US economic stability, geopolitical positioning, and energy security. It suggests that “Bitcoin could complement gold and Treasury bonds, giving the U.S. fiscal policy a modernized, diversified foundation.”
    • There are also calls for Trump to consider freeing Ross Ulbricht, the founder of the Silk Road darknet market, and replacing SEC Chair Gary Gensler, signaling a desire for a more lenient regulatory environment.
    • 220 pro-crypto candidates were elected across various levels of government, indicating a potential shift in legislative attitudes toward crypto.

      • 3. Mixed Investor Sentiment and Ethereum's Challenges:

      • Despite Bitcoin’s rally, CryptoQuant reports US investors are exhibiting caution, potentially hindering a full-blown rally. Their report highlights that “Bitcoin’s potential growth may largely depend on continued international demand and favorable external economic factors.”
      • While global demand for Bitcoin surges, US investors remain cautious, creating a divergence in sentiment.
      • Ethereum faces challenges, hitting a three-year low against Bitcoin despite favorable supply trends. Betting markets predict a low probability of Ethereum reaching a new all-time high in the near future.

        • 4. Funding and Investment Trends:

        • Venture capital funding in crypto startups reached $860 million in October, marking the highest level in over six months.
        • This resurgence was driven by investments in the gaming sector, Web3 general applications, and Bitcoin infrastructure.
        • Notable funding rounds include Blockstream securing $210 million for Bitcoin infrastructure development, and Yellow Card raising $33 million for African on and off-ramping solutions.

          • Conclusion:

          Trump’s return to the White House has ignited significant activity and optimism within the US crypto landscape. Bitcoin’s surge and the influx of venture capital suggest a potential for substantial growth. However, cautious US investor sentiment and Ethereum's struggles highlight potential challenges. The coming months will be crucial in determining the direction of US crypto policy and its impact on the market.

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