The cryptocurrency market’s value has surpassed $3 trillion in anticipation of an industry-friendly United States president.
The global market value for crypto reached a record high of nearly $3.2 trillion on Nov. 14 in Asia, Reuters reported, citing data from CoinGecko.
Crypto investors are banking on the idea that friendlier U.S. regulation could lead to a new boom for the digital asset sector, the report said. The $3.2 trillion figure is higher than the level reached during the crypto boom of 2021.
Also seeing record prices is the most popular cryptocurrency, bitcoin, whose value surpassed $93,000. Another high-profile coin, ether is up 33% since the election, while Elon Musk-promoted currency dogecoin jumped 140%, according to the report.
Musk is a President-elect Donald Trump supporter and figure in the new administration, where he will help oversee an initiative called the Department of Government Efficiency, or DOGE (also the abbreviation for dogecoin).
“Generally, the way this market goes is bitcoin will break out, and then the rest of the altcoins will follow,” said Matthew Dibb, chief investment officer at cryptocurrency asset manager Astronaut Capital, per the report. “So, there is that gradual rotation of capital … and then we can expect the total market cap to increase.”
Trump’s win, along with the election of several pro-crypto legislators, has fueled a surge of optimism around the industry, which has long called for more regulatory clarity, the report said.
The need for clear regulatory frameworks is still one of the most pressing issues facing the crypto sector, and a Trump administration would likely see shake-ups at the top of regulatory bodies like the Securities and Exchange Commission.
“Such a shift could lead to relaxed standards around securities classifications and tokenized assets, enabling crypto businesses to operate with greater flexibility,” PYMNTS wrote last week.
Trump campaigned on the idea of turning the U.S. into the “crypto capital of the planet,” in sharp contrast to the President Joe Biden administration, criticized by the industry for conducting “regulation by enforcement” under the SEC.
Trump has been a vocal critic of SEC Chair Gary Gensler, who has taken a tough stance on crypto, classifying many crypto assets as securities. Trump’s promise to replace Gensler with a more crypto-friendly SEC head has led to speculation that the commission would take on a more laissez-faire stance under a new chair.
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