Crypto market hits $3T as Trump’s win boosts confidence

By Mertkan Oruc

Cryptocurrency markets continue their bullish trend following President-elect Donald Trump’s win in the November elections. His positive remarks about cryptocurrencies helped Bitcoin surge to over $93,000.

Bitcoin was trading below $70,000 before the elections, but it spiked after Trump’s win, with many altcoins also following suit. The total market capitalization of cryptocurrencies rose above $3 trillion.

Reports that Trump Media and Technology Group is in talks with the cryptocurrency platform Bakkt for its acquisition further fueled market excitement, coupled with Trump’s private meeting with Coinbase CEO Brian Armstrong. Expectations are rising that a pro-crypto figure will be nominated for the US Securities and Exchange Commission (SEC).

Meanwhile, Bitcoin ETF options began trading on Tuesday on the Nasdaq, with approximately $2 billion in volume on its first day. Spot Bitcoin ETFs, approved earlier this year, have contributed to the growing institutional interest.

The Crypto Fear and Greed Index, which measures investor sentiment, reached 90 out of 100 on Tuesday, signaling “extreme greed.”

- Trump’s crypto-related meetings prove positive for entire ecosystem

Bora Erdamar, lecturer of economics at Bahcesehir University in Istanbul, told Anadolu that the main factor behind the rise is that a US president is taking “important and constructive” steps to support the crypto sector.

Erdamar said that Trump has expressed his support for Bitcoin mining and invited miners to the US, and that the SEC’s cautious approach to cryptocurrencies is expected to change.

Regarding Trump Media and Technology Group’s efforts to acquire Bakkt, Erdamar noted that Trump’s involvement in the crypto ecosystem through his subsidiaries, along with his meeting with Coinbase CEO Brian Armstrong, may signal that he will “listen to the industry and make moves to address the needs of the ecosystem.”

Erdamar also pointed out that spot Bitcoin ETFs facilitate institutional investments, “allowing Bitcoin to be bought and sold not only at its current price but also at predetermined prices, and the institutionalization of Bitcoin will bring liquidity.”

He added that long-term investors have seen significant profits, but he warned that caution is needed due to market volatility.

* Writing by Emir Yildirim in Istanbul.