The global cryptocurrency market value surpassed $3 trillion for the first time on the back of th e optimism that Donald Trump’s return to the US presidency could lead to a friendlier regulatory environment for digital assets.
The total market capitalization for cryptocurrencies peaked at nearly $3.2 trillion in early Asian trading on Thursday, November 14, according to data aggregator CoinGecko. Bitcoin, which dominates the market, surged to a record $93,480 outpaced the sector’s previous highs from the pandemic-fueled boom in 2021.
“Typically, Bitcoin leads, and then other altcoins follow,” Matthew Dibb, Chief Investment Officer at Astronaut Capital was quoted as saying by Reuters. He also noted that there’s a gradual rotation of capital, so we expect the total market cap to continue rising.
Trump’s election and the success of several pro-crypto lawmakers in Congress have boosted investor sentiment by potentially reducing regulatory headwinds. The spot bitcoin exchange-traded funds (ETFs) have attracted around $4 billion in net inflows since November 6, based on Refinitiv Lipper data.
Bitcoin, last trading around $91,500, has doubled in value this year and climbed roughly 30% since Trump’s election on Nov. 5. Other cryptocurrencies have also gained, with Ether up about 33% and Dogecoin, promoted by Trump ally Elon Musk, rising 140%.
The rally marks a rebound from the lows of early 2023 when Bitcoin fell below $20,000 on the fallout from the collapse of FTX and other high-profile crypto projects. However, the $3 trillion market remains modest compared to traditional assets, with the S&P 500 valued at $50.6 trillion and global gold reserves worth nearly $19 trillion.
However, not all segments of the crypto ecosystem are recovering at the same pace. Average sale prices for non-fungible tokens (NFTs) have remained relatively flat since mid-year while trading on platforms like DBS Digital Exchange in Singapore shows investors are largely sticking to mainstream digital assets.
