Implications of US Election Results on Crypto & Retail Investors
crypto space being no exception. Following Donald Trump's victory, the market has experienced a surge in crypto prices, marking what many consider the beginning of a new bull run. Anush Jafer, Content Lead at Mudrex Research, discussed the implications of Trump's win on the crypto market and retail investor sentiment during a recent ETMarkets live stream.
Immediate market reaction
The market’s immediate reaction to Trump’s win has been overwhelmingly positive. Over the past week, Bitcoin surged past its previous all-time highs and entered a phase of price discovery. The cryptocurrency is now experiencing a breakout, having cleared bearish resistance levels after a prolonged consolidation phase. This surge is not limited to Bitcoin alone, as altcoins like Ethereum and Dogecoin have also seen substantial gains, reflecting a broader market rally.
The Trump factor
The significant market shift can largely be attributed to Trump's pro-crypto stance. Unlike the Democratic Party's cautious approach to crypto regulation, Trump's policies have historically favored the sector. Under his leadership, investors are anticipating a more crypto-friendly environment, especially with the potential dismantling of initiatives like Operation Chokepoint, which has been criticized for restricting access to banking services for crypto firms.
