The post Will Trump’s Election Win See the Crypto Market Enter a New Bull Cycle? These Assets Could Explode appeared first on Coinpedia Fintech News
After the election closed with a Trump win, everyone from financial traders to mom-and-pop shop workers had the same question: what now?
Donald Trump will officially become the 47th US president on Inauguration Day, which is 20 January 2025.
Cryptocurrency enthusiasts have been met with delight as market-leading asset Bitcoin crosses the $76K mark for the first time in history. Even before Trump’s win was confirmed, traders took punts on crypto, forex, stocks, and bonds.
US yields have taken a sharp rise after treasuries plunged on Wednesday, with traders showing fear of rising deficits. The US Dollar exhibited strength, fueled by Trump’s plan to pin tariffs on all imports.
Oil prices slipped, too. This happened based on expectations that Trump would boost the global oil supply, lowering the price.
It’s also worth remembering that presidential elections have always been good for crypto. In the sixth months that followed 2012, 2016, and 2020 elections, Bitcoin’s price rose 949%, 131%, and 328%, respectively.
However, this is the first time we’ve had a pro-crypto president, something analysts expect will help launch Bitcoin toward $200K.
The Trump Trade on TradFi: Trump Media & Technology, Oil, Chips and Banking
Trump’s win has given crypto prices a considerable boon, but it’d be a mistake to overlook its impact on stocks.
Trump Media & Technology (DJT) soared over 30% on the election result. As the name suggests, it’s Trump’s media company, and its main business is the free speech-focused social media site Truth Social.
Ironically, it largely trades as a meme stock, with its price following Trump’s fortunes rather than the company’s fundamental performance.
American oil workers will be busy for the next four years. Trump’s attitude toward drilling for oil, encapsulated by his mantra “Drill baby, drill,” is why oil stocks in the US will do well. Exxon Mobil Corp is the largest US oil company – take that into account.
Trump’s “America First” policy will protrude in the microchip market, with tariffs on imported chips bolstering production in the US. For the US microchip trade, consider Intel Corp. Its price is down heavily year-on-year, but it’s up 13% this week on Trump’s win.
The new president’s non-interventional approach to regulation will bolster banking stocks. But Wells Fargo is experiencing a significant rise since it might be able to see its punitive $1.9 trillion asset cap lifted, which has been in place since 2018.
A Deregulation “Sonic Boom” Will Send Ethereum to New Heights
If you’ve been around Crypto Twitter or watched the price charts over the past six months, you’d think Ethereum is dying.
Yet today’s price action suggests that Ethereum was cornered by regulatory overlords, and development was limited to meme coins.
The SEC has been sniffing around practically everything that wasn’t a meme coin – and while it gave ether the greenlight, that didn’t stop attacks on Ethereum’s ecosystem powers, such as OpenSea, Uniswap, and Consensys, among countless others.
SEC Chair Gary Gensler has it out for crypto, but Trump is putting that to bed. He made it no secret that he would fire Gensler as soon as his first day in office. However, speculation is brewing that Gensler will quit before Trump is inaugurated.
Trump wants to take the training wheels off and make America “the crypto capital of the world.”
Esteemed tech investor Naval Ravikant says that Trump’s reregulation will create an “economic sonic boom,” and it starts with Ethereum.
ETH is up 9% today, outpacing BTC, SOL, and other large caps. Similarly, its ecosystem tokens are thriving in the deregulating environment.
Yet, ETH grossly underperformed BTC and SOL this year.
Unlike Ethereum, which focuses mainly on DeFi, Bitcoin does what it says on the tin: it stores value, and it’s a currency – no grounds for an SEC purge.
Meanwhile, Solana mostly avoided the SEC’s crosshairs, with the bulk of its ecosystem activity geared around meme coins. No thrills joke tokens for “entertainment purposes.” It’s hard to make a case for them being securities.
Yet, now that the SEC is out of the way, gains are flooding in, and Ethereum has the biggest net.
But Ethereum Ecosystem Plays Are the Real Winners
ETH has soared by a respectable 9% today, but it’s unlikely to be the biggest gainer in the months ahead. Its $340 billion market cap takes a lot of firepower to move.
On the contrary, its ecosystem tokens are already seeing parabolic growth.
We should start with Pepe Unchained. It’s an Ethereum-based token that blurs the lines of utility and meme coin.
They’re building a layer 2 blockchain styled around the iconic Pepe coin. It cuts costs and bolsters transaction fees compared to the main network, but the real prize is its ecosystem innovations.
Notably, they just unveiled “Pepe Pump Pad,” which will be Ethereum’s answer to Solana’s Pump.fun tool.
Pump.fun played an instrumental role in Solana’s ecosystem growth this year. We expect the same for the Pepe Pump Pad.
Pepe Unchained also has staking, an Ethereum bridge, a DEX, and a block explorer – everything you’d expect from a top blockchain. They’ve raised $25 million at presale.
For those who are interested in early-stage projects, Crypto All-Stars and Flockerz will also do well.
Both are Ethereum-based presales. Crypto All-Stars is building a staking app for meme coins, allowing users to generate passive income from DOGE, PEPE, SHIB, and more.
Flockerz is a meme coin with a decentralized autonomous organization (DAO) underpinned by a Vote-to-Earn mechanism that rewards users for participating.
They’ve raised $3.1 million and $1.3 million, respectively.
Building up positions in already established Ethereum plays also makes sense. In that regard, staking protocols Lido DAO, Rocket Pool, and Ethena could flourish. They were previously under scrutiny from the SEC, with rumours that lawsuits would follow.
There are also talks of a “DeFi Renaissance” in which first-generation DeFi tokens, free of the daunting “high float low FDV” tokenomics of newer models, will make a resurgence. This starts with Aave, Ethereum’s DeFi leader, which is up 17% today.
Bitcoin to Become a Reserve Asset, Senator Lummis Proposes $76 Billion BTC Buying Spree
Crypto money bolstered Trump’s campaign, with the industry pouring millions of dollars into the presidential and congressional races.
The result is the most pro-crypto president and congress we’ve ever had.
Over the past months, Trump and other prominent political figures have hinted at a US strategic Bitcoin reserve.
Senator Cynthia Lummis was one of the biggest proponents. Lummis even proposed a bill to accumulate 1 million BTC over five years, which amounts to $76 billion at today’s price.
Whatever the world or Democrat voters may think about Trump, he’s proven a shrewd political figure. His endorsement of Bitcoin and hands-off approach to regulation will soon make crypto an asset class worthy for governments and institutional investors alike. He’s making history.
