On November 6, the Republican presidential nominee, Donald Trump, won the United States elections, becoming the country’s 47th president. His victory triggered all forms of reaction across several financial assets as market participants rejoiced or expressed disappointment in the election outcome.
A tweet by on-chain analytics firm Santiment has revealed that the crypto and equities markets became charged with positive momentum as soon as the election results were released, while other groups of assets showed little to no optimism.
Assets React to Trump’s Win
Bitcoin (BTC) climbed roughly 13% from $68,000 to $77,240 from the excitement of the election results. The cryptocurrency began to rally when it was clear Trump was leading Kamala Harris, the Democratic Party candidate, at the election polls and surged past its previous all-time high after the result was announced. It kept going further in the following few days and its current ATH record sits at $77,200.
According to Santiment, the S&P 500 index hit a new all-time high of 6,011 as investors expressed confidence in an anticipated pro-business economy following Trump’s inauguration by January 2025. The euphoria also stemmed from the belief that capital gains would remain steady over the next four years of Trump’s tenure.
On the other hand, gold and silver, considered safe-haven assets, went in the opposite direction from BTC and the S&P 500, falling roughly 5%. Santiment said this price movement could cause investors to move their funds from precious metals to risk assets like crypto.
“The increase in market confidence appears to be triggering comfort from investors that they can profitably move money away from precious metals (usually more fear-driven) and into optimistic, speculative assets like cryptocurrency for the time being,” the analytic firm stated.
BTC to Continue Bullish Momentum
While Trump’s victory triggered positive movement in the prices of financial assets, the crypto market, in particular, is bullish about the landmark win because of the president’s favorable stance.
Over the past years, U.S. authorities have battled with entities in the crypto space, including exchanges and decentralized platforms, with the country’s securities agency allegedly attempting to regulate the industry through enforcement. During his campaign, Trump vowed to turn things around and create a more favorable environment to foster crypto innovation in the country.
As the industry awaits the introduction of the new regime in 2025, BTC is expected to register more gains as the second phase of the bull market kicks into full gear.
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