How the US Elections Made the Cryptocurrency Market the Biggest Winner
As the markets digest the just-concluded United States polls, it is emerging that the cryptocurrency space might be the biggest beneficiary of the elections. In this case, the benefits are coming from the fact that the sector was responsible for major financial backing that helped elect a wave of supportive candidates, analysis by The Kobeissi Letter on November 8 indicated. The sector spent over $135 million through Political Action Committees (PACs), supporting over 50 candidates and securing 48 victories so far. Notably, as the tallying of the votes continues, the sector’s preferred candidates are ahead in all but three of the eight races.
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A breakdown of the specific funding shows a significant amount was channeled towards Ohio’s Senate race, supporting Republican Bernie Moreno with a funding of $40 million. Moreno’s campaign targeted incumbent Senator Sherrod Brown, the Chair of the Senate Banking Committee, known for his vocal skepticism about crypto. This bet has paid off with Moreno clinching the seat.
Overall, the crypto contributions have rivaled corporate contributions, with $119.2 million flowing into election campaigns compared to $154.9 million from corporate interests by August.
US federal election spending from corporate treasuries. Source: OpenSecrets
Crypto market reacts positively to Trump’s win The results have triggered a significant market rally, pushing Bitcoin (BTC) above $75,000, a new record high. Likewise, Dogecoin (DOGE) has surged by 80% in the past month, fueled by Elon Musk’s continued support and his close ties to president-elect Donald Trump. The rally in both Bitcoin and Dogecoin has seen investors reap the rewards, with the assets recording a surge in the number of millionaire investors. Some analysts believe the assets are likely to see sustained gains, with some noting that Bitcoin could reach $100,000 before Trump’s inauguration on January 20, 2025. At the same time, the stock of cryptocurrency exchange Coinbase (NASDAQ: COIN) has surged by 65% since early September as institutional inflows have grown.
Coinbase stock price chart. Source: Bloomberg
With Trump’s re-election and a Congress potentially favorable to crypto, investors and companies alike are optimistic about favorable regulatory reforms on the horizon. In this line, market players such as Coinbase Chief Legal Officer Paul Grewal are now calling on the incoming administration to audit the country’s cryptocurrency regulations. The election of Trump has inspired some optimism in the market that he will follow through on his promises for the sector. For instance, there is anticipation that Trump’s first order to the crypto world will be to fire Securities and Exchange Commission (SEC) Chair Gary Gensler, who has been viewed as stifling the sector. At the same time, investors will be watching Trump’s move to have Bitcoin as part of the U.S. reserves. Meanwhile, not all players, such as economist Peter Schiff, believe Trump will keep his promises for the sector. Featured image via Shutterstock
