The cryptocurrency market has soared to a historic $3.2 trillion, driven by optimism that recent US election results, including Donald Trump’s victory, could usher in friendlier regulations and fuel new growth in digital assets.

Data from CoinGecko highlights that the global cryptocurrency market capitalization hit nearly $3.2 trillion during early Asian trading hours on November 14. This record surpasses the peaks seen in 2021, when pandemic-driven stimulus packages encouraged speculative investment across digital assets.

Despite a period of range-bound activity and slower growth, Bitcoin continues to lead the market. The world’s largest cryptocurrency recently reached a new all-time high of $93,480, propelling the market cap to this historic milestone.

Trump’s victory and the election of pro-crypto lawmakers have diminished some of the regulatory uncertainties that previously held back the market, sparking renewed investor confidence. Following the US election on November 5, Bitcoin’s value surged 30%, bringing its year-to-date gains to 100% and its price to $90,000. Similarly, Ethereum, the second-largest cryptocurrency, has gained 33%, reaching $3,220. Dogecoin, a meme-inspired coin backed by Trump ally Elon Musk, skyrocketed 140%.

Additionally, institutional interest in cryptocurrency appears to be growing, with significant inflows into crypto exchange-traded funds (ETFs), offering a way for traditional financial players to gain exposure without directly holding digital assets.

Individual crypto-focused stocks also saw sharp increases. MicroStrategy, the largest corporate holder of Bitcoin, jumped over 44% since election day. Crypto exchanges like Coinbase and Robinhood experienced gains of 47% and 28%, respectively, while crypto mining companies Riot Platforms, Marathon Digital Holdings, and CleanSpark rose by 31%, 34%, and 48%.

With regulatory clarity potentially on the horizon, investors and financial institutions alike are showing renewed enthusiasm for the cryptocurrency sector.

(Sources: investing.com, reuters.com)