Crypto Market Reacts to Trump’s Win, Bitcoin Hits Historic Highs

After an intense and prolonged contest spanning around two years, Donald Trump has emerged victorious in the 2024 U.S. presidential election, defeating Vice President Kamala Harris to become the 47th President of the United States.

The impact of the election results on the market has been substantial. Due to expectations of increased trade protectionism and higher interest rates under the new administration, the U.S. dollar has strengthened against major currencies such as the Japanese yen, euro, Mexican peso, and Chinese yuan. Additionally, stocks of companies like Tesla have experienced a rally.

More notably, Bitcoin has surged to record highs, fueled by President-elect Trump’s pledge to end the Biden administration’s regulatory crackdown and position the United States as a leader in crypto. 

During his first term, Trump was a vocal crypto skeptic, dismissing it as a scam and arguing it competed with the U.S. dollar. However, in 2024, he shifted his stance, branding himself as a crypto champion. Trump has promised to embrace emerging industries and establish America as a global hub for crypto and Bitcoin, stating, “Instead of attacking industries of the future, we will embrace them, including making America the world capital for crypto.”

In September, Trump launched his own crypto venture, World Liberty Financial, as part of his campaign efforts. He even became the first former president to use Bitcoin during the campaign, notably buying burgers in New York with the cryptocurrency.

Crypto companies responded enthusiastically, donating millions to his campaign. According to First Post, an India-based media outlet, the crypto industry spent around $120 million supporting Trump and his party, with lobbying efforts now appearing to have paid off.

Following the election result, Bitcoin has experienced a 7% increase within 24 hours, surpassing $74,000 and setting a new record high since March. The momentum has continued, pushing Bitcoin over $90,000 as of Wednesday. Other cryptocurrencies like Ethereum and Litecoin have also surged following Trump's victory announcement on November 6.

This surge in cryptocurrency has also sparked excitement among local crypto enthusiasts. Henock, a 27-year-old crypto trader and advocate, noted the “immense euphoria” within the Ethiopian crypto community. He and his peers have been actively working to engage the government in crypto initiatives, hoping for more open trading opportunities now that the Birr has been floated.

“It's intriguing that people are buying more crypto now, even though prices are high. Typically, the strategy is 'buy low, sell high,' but this time it's different. The current market euphoria is driving interest, and many people are afraid of missing out.” Henok told Shega.

On the other hand, Hanna Terefe, another trader, says, “There is a bull going on right now, but I don’t necessarily attribute it to the election result.” Hanna argues Bitcoin typically follows a cycle that recurs every four years, coinciding with the Bitcoin halving events.

"This bull run aligns with the established cycle we've seen in the past," she notes, adding that many investors in digital assets are currently reaping profits.