The US elections have always been a pivotal period for financial markets, including cryptocurrency. Last November 5, 2024, the US had their elections with President-elect Donald J. Trump as the victor in its election. Not too shortly after, Bitcoin saw a “face-melting” pump from $72,000 all the way to $99,600.

Currently, the total market capitalization of the entire cryptocurrency industry is at an all-time high. How did the recent 2024 US elections affect the cryptocurrency market and what can we expect in the next few months?

How did Donald Trump pump crypto?

After a lengthy sideways price action for Bitcoin, ranging between $71,000 to $50,000, it saw a tremendous news-driven spurt from Donald Trump’s win. There are a few reasons why cryptocurrency investors and market makers decided to go all-in because of this:

Regulatory concerns: The US SEC under the Biden-Harris administration has been upfront with their attack against crypto with Operation Chokepoint. The SEC, led by Gary Gensler, attempted to sue numerous cryptocurrency companies such as Consensys, OpenSea, Kraken, Coinbase, Binance, and numerous more.

Under a Trump administration, Donald Trump vowed to relieve Gary Gensler of his position in the SEC due to overreaching his authority against cryptocurrency. Currently, Gary Gensler faces 18 lawsuits against him from different states led by Kentucky due to his abuse of power.

Pro-crypto US government: Besides the incoming US Congress making up the majority with pro-crypto representatives, Donald Trump’s confidants are also vocal on their stance with cryptocurrency:

• Elon Musk: Billionaire owner of Tesla and SpaceX, is one of the top donors to Donald Trump’s campaign. He has been vocal about his support with cryptocurrency and is poised to become the head of Department of Government Efficiency or D.O.G.E which is named as a homage to his favorite crypto memecoin, Dogecoin.

• JD Vance: Donald Trump’s running mate for Vice-President has also disclosed that he owns up to $500,000 worth in Bitcoin.

• Vivek Ramaswamy: Also working alongside Elon Musk to enforce the Department of Government Efficiency, Vivek has been vocally supportive of cryptocurrency by owning Bitcoin and having shares in crypto payment platform, Moonpay.

Strategic Bitcoin Reserve: Previously in the 2024 Bitcoin Conference, Senator Cynthia Lummis proposed to purchase 5% of the world's Bitcoin supply and hold it for at least 20 years as part of the US Strategic Reserve. With Donald Trump’s support, investors scramble to accumulate as much Bitcoin as they can before the US Government starts accumulating Bitcoin themselves.

While these are one of the few reasons why Bitcoin has pumped since the victory of Donald Trump, will this bullish price action continue in the next 4 years? There are many fundamental and technical questions in play. The stigma of crypto remains to linger after the FTX meltdown, causing retail to lose billions of dollars due to crypto scams and mismanagement. However, the future of Bitcoin, along with the rest of the cryptocurrency market, seems to be shining bright.