Regardless of the region or industry, a power shift in the United States commands global attention, with the ripple effects of a new or returning administration’s policies expected to be felt worldwide. Donald Trump’s comeback victory as America’s 47th president on Tuesday, November 5, was no exception. Major industries, including the cryptocurrency market, are already feeling the massive impact from this imminent leadership shift in the world’s foremost economic and military power.

In the hours following Trump’s win, Bitcoin, the first decentralised cryptocurrency, surged to a new all-time high of over $75,000 on major exchanges. By Wednesday morning, crypto platforms like Binance and Coinbase were also witnessing notable price increases.

On Tuesday, November 12 — exactly seven days after the 2024 US election — Bitcoin’s value climbed above $87,000, marking a $19,000 surge from last Tuesday’s $68,000.

This surge is largely linked to Trump’s imminent return to the Oval Office in January 2025. But what exactly is responsible for this dramatic market response? Here’s a concise, easy-to-understand breakdown of all factors.

Why Bitcoin and Other Cryptos are Rising

Over the past four years under President Joe Biden, the cryptocurrency market faced substantial challenges, largely due to stringent regulations from the U.S. Securities and Exchange Commission (SEC) led by Gary Gensler. Many crypto advocates viewed Gensler as an adversary of the industry, pushing for heavy-handed regulations that restricted banking access for crypto companies and enforced rigid compliance on firms like Binance, Coinbase, and Ripple. According to the Blockchain Association, these regulations have cost companies at least $426 million in digital asset litigation under Gensler’s tenure.

This “regulation by enforcement” approach culminated in a cautious crypto environment for all players.

However, with a pro-crypto figure like Trump elected, a more favourable regulatory environment is anticipated — beginning with Gensler being relieved of his duties. Backed by influential crypto-inclined folks like Robert Kennedy Jr., Elon Musk, and Vivek Ramaswamy, Trump already said he would fire Gensler “on day one” to end the recent era of stringent regulation. This shift is expected to usher in crypto-friendly policies and frameworks designed to encourage innovation, starting with the potential establishment of a Bitcoin Strategic Reserve, which aims to strengthen both the U.S. dollar and digital assets.

As the new administration signals support, institutional investors and companies may feel more confident in the crypto space, enjoying easier access and fewer restrictions within the U.S. With the world’s largest economy backing crypto, a thriving U.S. market would have a positive influence on global markets.

Moreover, the current upsurge aligns with Bitcoin’s four-year market cycle — a timed event that impacts Bitcoin’s demand, as investors prepare for the next halving event, which controls the coin’s supply and scarcity.

In conclusion, the convergence of a pro-crypto administration and Bitcoin’s cyclical momentum has set the stage for a sustained rally, with implications that could resonate across the entire digital asset ecosystem.