Crypto Rally After Trump’s Victory: Bitcoin Hits New Peak, Ethereum and Solana Follow Suit

The results of the U.S. presidential election, which saw former President Donald Trump defeating Vice President Kamala Harris, sparked major shifts in the cryptocurrency market. As Trump reclaims the White House, various sectors anticipate shifts in regulatory and economic policies that could influence everything from taxes to financial oversight. Notably, several major cryptocurrencies surged as markets began to digest what the new administration might mean for decentralized assets and the growth of the crypto economy. Below, we examine key cryptocurrencies that have experienced substantial price increases in response to the election results and explore how the shifting political landscape may continue to shape their trajectories.

1. Bitcoin (BTC): A New All-Time High

Bitcoin soared to a record-breaking high, reaching over $75,400, with a peak at $75,500 shortly after the election results. This represented an 8% single-day increase, a significant gain driven largely by investor optimism around Trump’s pro-business stance and potential policies aimed at reducing financial oversight. 

Why Bitcoin Surged: 

• Deregulation and Tax Cuts: Investors are optimistic that Trump’s policies will favor deregulation, which could ease restrictions on cryptocurrency markets. Additionally, tax cuts for long-term holdings could encourage more institutional investments. 

• Decentralized Currency Alternative: Trump’s policies may create an environment that favors Bitcoin as an alternative to traditional financial systems, particularly as they may reduce dependence on institutions like the Federal Reserve. 

• Risk Asset Growth: The Trump administration’s support of risk assets is seen as a bullish signal for Bitcoin, reinforcing its role as a store of value in uncertain economic times. 

This rally may mark the beginning of a more sustained bullish trend as investors view Bitcoin as a viable hedge against traditional economic policies.

2. Ethereum (ETH): Gains Driven by Competitive Positioning

Ethereum’s price spiked by 10% in the wake of the election results, as traders anticipated that deregulation could also benefit decentralized applications (DApps) and smart contract platforms. Ethereum has been the leading blockchain for decentralized finance (DeFi) and non-fungible tokens (NFTs), and a favorable policy shift could stimulate further adoption. 

Key Factors for Ethereum’s Surge: 

• Deregulation of DeFi: Trump’s deregulation policies could pave the way for more innovation within the DeFi space, bolstering Ethereum’s use case. 

• Layer-2 Developments: Although Solana has overtaken Ethereum in certain DEX (decentralized exchange) metrics, Ethereum’s large ecosystem and ongoing improvements (such as Layer-2 scaling solutions) make it a strong competitor. 

• Staking and Network Growth: The modest growth in Ethereum’s total value locked (TVL) also indicates sustained interest in staking and yield-generating activities. 

Ethereum’s price increase aligns with investors’ anticipation that Trump’s policies may reduce regulatory friction, fostering innovation across the DeFi and NFT sectors.

3. Solana (SOL): Surpassing Expectations Amid Market Rally

Solana saw an impressive 12% increase in value, benefiting from its own momentum and Bitcoin’s rally. At around $187.08, Solana continued to gain traction due to its superior performance in the DEX ecosystem and increased staking participation. 

Why Solana’s Price Jumped: 

• Dominance in DEX Activity: Solana leads in DEX volumes, suggesting strong user engagement. Solana’s competitive edge in decentralized exchange activity positions it well to capitalize on any relaxed regulatory environment. 

• Staking Rewards: With a 6.5% yield on native staking and a high staking participation rate, Solana attracts investors looking for a return on their holdings. 

Solana’s rally could continue, with the potential to hit a $200 target in the short term. Reduced inflation and strong network fundamentals indicate sustained growth potential.

4. XRP: Modest Gains as Payments Sector Shows Interest

XRP, known for its role in cross-border payments, rose by 4% following the election. Given Trump’s prior focus on economic efficiency, XRP could benefit from policies aimed at streamlining financial transactions and reducing red tape around international transfers. 

Contributors to XRP’s Growth: 

• Support for Financial Innovation: Trump’s administration may encourage innovation within the financial sector, possibly supporting projects like XRP that aim to improve payment systems. 

• Cross-Border Efficiency: XRP’s price increase suggests that investors believe cross-border payment solutions will be prioritized under Trump, given his historical emphasis on reducing financial inefficiencies. 

Although XRP’s growth was more conservative compared to Bitcoin and Ethereum, its increase reflects optimism about the future of financial technology.

5. Dogecoin (DOGE) and Shiba Inu (SHIB): Memecoins See Double-Digit Gains

Memecoins Dogecoin and Shiba Inu surged by 25% and 10% within the 24 hours after elections, respectively, with their price gains tied closely to developments surrounding the election and Trump’s victory. Elon Musk’s rumored Department of Government Efficiency (D.O.G.E) has fueled interest in Dogecoin, with many speculating that it would support  cryptocurrency due to its acronym and Musk’s enthusiasm for DOGE. 

What’s Driving Memecoin Growth: 

• D.O.G.E Proposal: Musk’s support for Dogecoin through a proposal that shares the same acronym has generated excitement in the memecoin community. This is especially relevant as Trump’s administration could give Musk greater influence. 

• Whale Activity: Dogecoin and Shiba Inu whales appear to be accumulating holdings, suggesting that large investors expect future rallies. 

• Correlation with Bitcoin: Both Dogecoin and Shiba Inu show price correlation with Bitcoin, indicating that broader market rallies boost their appeal among risk-on investors. 

The memecoin rally shows that investor enthusiasm extends beyond traditional cryptocurrencies, spurred by Musk’s influence and the Trump administration’s support of free-market dynamics. 

Is now a good time to invest in crypto?  

With the most pro-crypto stance we’ve seen from a U.S. administration, this could be a promising period for crypto investors. Former President Trump has openly supported cryptocurrency rights, stating that he upholds the right to self-custody for Bitcoin holders. He also vowed to protect Bitcoin from regulatory threats, saying, “With your vote, I will keep Elizabeth Warren and her goons away from your Bitcoin, and I will never allow the creation of a central bank digital currency”. Notably, Trump made history as the first U.S. president to use Bitcoin in a transaction in September. 

Given this political climate, the environment appears favorable not only for cryptocurrency investments but also for crypto projects with strong fundamentals. For investors seeking tax advantages, a Crypto IRA might be an ideal option. Crypto IRAs, like those offered by BitcoinIRA, allow investors to build a diversified crypto portfolio within the tax-advantaged structure of a self-directed retirement account. This can help you diversify your holdings and potentially maximize your crypto gains within a strategic tax framework.  

Final Thoughts: Looking Ahead for the Crypto Market 

The U.S. election results catalyzed one of the most dynamic days in crypto history, with Trump’s win sparking an increase in investor confidence. Bitcoin’s new all-time high signals that markets see a favorable regulatory environment ahead, and major coins like Ethereum, Solana, XRP, and memecoins have followed suit. 

As the Federal Reserve prepares to announce an interest rate decision on November 7, any dovish signals could further accelerate these gains. With Trump’s administration expected to reduce oversight and encourage innovation, the stage is set for potentially transformative growth across the crypto sector. Investors will be watching carefully to see how policies unfold, as these could shape the trajectory of the digital asset space for years to come. 

With a favorable pro-crypto administration on the horizon, there’s never been a better time to consider adding cryptocurrency to your retirement strategy. A Crypto IRA from BitcoinIRA lets you diversify your portfolio with tax-advantaged growth potential, holding assets like Bitcoin, Ethereum, Solana and more. Don’t miss this chance to build a robust, future-focused retirement plan as the crypto market continues to evolve. 

Ready to invest in a Crypto IRA? Start your journey with BitcoinIRA today!