[TL;DR]:

Trump wins the 60th US presidential election, and the encryption market rises across the board for the first time, while the concept of Meme coin fully priced-in good news declines.

In the turbulent journey of the 2024 US presidential election, Crypto Assets has not only emerged as a new topic, but has also profoundly influenced voter preferences, policy directions, and campaign strategies.

Regardless of how Trump fulfills his encryption promises, Crypto Assets have become an undeniable force in American politics. In the future, Crypto Assets will continue to play an important role in real-life production and life, influencing policy trends and market expectations.

Introduction

On November 6, in the most dramatic presidential election in U.S. history, Trump finally won 277 electoral votes, surpassing the 270-vote threshold for victory and winning the 2024 U.S. presidential election. During the election, the Crypto Assets market undoubtedly played an important role. What impact will the outcome of this election have on the encryption market? This article will delve into this issue.

Multiple reversals in the election, Trump's second entry into the palace

The 60th presidential election in the United States is being voted on November 5th Eastern Time. In this election, Kamala Harris, the Vice President of the United States and the Democratic Party's presidential candidate, is engaged in a fierce competition with Donald Trump, the former President of the United States and the Republican Party's presidential candidate.

On the eve of the election, with a close race, the results of various polls show that the support rates of the two candidates are almost the same, which not only makes the election result full of suspense, but also triggers widespread follow worldwide.

Figure 1 Source: apnews.com

During the election process, the two candidates each launched intensive campaign activities, striving to win the support of voters. They expressed their policy positions and governing philosophies through speeches, advertisements, social media, and other channels, attempting to gain the trust and votes of the voters. At the same time, the major media closely followed the progress of the election, providing real-time coverage of election trends and voter reactions, and offering the public with rich information and perspectives.

After experiencing the turbulence of Trump's assassination attempt and Biden's withdrawal from the race, Trump's chances of winning the election were initially dominant, but Harris surpassed him multiple times, making it the most intense and dramatic election of this round. As Trump's votes led the way yesterday, the election results finally settled.

Figure 2 Source: Polymarket

It is worth noting that the support of encryption voters has played an important role in favoring policy-friendly Trump. Trump has a friendly attitude towards Cryptocurrency and even sees it as an important force driving the US economy. He frequently showed goodwill to industry insiders during his campaign and promised to develop a plan to ensure that the US becomes the world's encryption center and a BTC superpower. He also appointed a BTC/Cryptocurrency Presidential Advisory Committee. In contrast, Harris and the Democratic Party she belongs to have a more cautious and regulatory attitude towards Cryptocurrency. Since the Biden administration took office, there has been an increase in regulatory measures on Cryptocurrency, leading to a series of legal disputes and industry turmoil.

In addition, Crypto Assets played a significant role in donations during the election. Giants in encryption such as Coinbase and Ripple have become major contributors to corporate political donations, while super PACs like Fairshake that are friendly to Crypto Assets support pro-Crypto Assets candidates by raising funds and combating skeptical opponents. These funds not only influence the policy positions of presidential candidates but also drive election strategies supporting Crypto Assets in Congress.

Short-term Impact: BTC surges, while concept coins related to the election generally fall

Actually, before the confirmation of yesterday's election results, the crypto market quickly responded. Benefiting from the fact that Trump basically locked in the election results, the BTC price soared all the way and quickly broke through to a new all-time high.

Figure 3 Source: gate

It is particularly worth mentioning that ETH, which has been weak for two years, has recently shown strength, with a 24-hour increase of 10.9%, which often indicates the arrival of the altcoin season in the past Bull Market. Of course, ETH is still far below BTC in relative terms. Whether this strong trend can continue and dispel the market's fear, uncertainty, and doubt remains to be seen.

Figure 4 source: gate

In addition, the long-silent Decentralized Finance zone has pumped significantly. With Trump's victory in the election, where he promised to quickly replace the SEC chairman who has taken enforcement actions against the Decentralized Finance zone multiple times, and establish a national strategic reserve of BTC, this news has led to a general expectation in the market that the regulatory environment of the Crypto Assets industry will become more relaxed.

As a result, UNI, AAVE, DYDX, RDNT and other Decentralized Finance Tokens have all experienced significant rises, with ENA in particular attracting market attention with a 30% rise, thanks to its innovative model of distributing income to token holders.

Figure 5 Source: gate

In addition, the Meme zone, mainly represented by DOGE, WIF, and POPCAT, has surged again, but political Meme coins such as TRUMP, MAGA, FIGHT, and HARRIS have started to experience a big dump before the election results were announced, indicating a rapid decline in market enthusiasm for speculation on political hot events.

At the same time, the prediction market on Polymarket has also experienced a major reshuffle. Although 90% of the forecast users ultimately suffered losses, a small number of winners still earned substantial returns with accurate predictions, with the highest winner reaping a huge profit of 50 million dollars.

Figure 6 Source: gate

Long-term impact: encryption integrates into reality, long-term value optimistic

Since the birth of Bitcoin, it has accompanied the United States through three election cycles and has become a prominent key issue in the 2024 US presidential election. With the deepening of the BTC concept in people's hearts, supporters have formed an undeniable voter base, and this force is increasingly highlighting its importance on the US political stage.

In the face of the increasingly severe problem of Inflation, American voters' demand for assets that can fight inflation is rising. BTC, with its characteristics of Decentralization and limited supply, has become a safe haven in the hearts of many people. Especially against the backdrop of almost stagnant real wage purchasing power, BTC provides hope for financial independence for the general public and has become an effective tool for them to fight inflation and even speculation. Therefore, in the election, candidates' attitudes towards Cryptocurrency have become one of the focuses of voters' attention.

During the Biden administration, the regulatory efforts on Crypto Assets have been intensifying. The government has brought multiple lawsuits against encryption companies and individuals, and implemented a series of strict tax reporting requirements. However, after the FTX collapse, the government's crackdown on the encryption industry has reached an unprecedented level, causing many practitioners to feel dissatisfied and concerned about the Biden administration's regulatory policies.

In contrast, Trump has a more friendly attitude towards Crypto Assets. However, Trump's encryption policy also faces many challenges, including resistance and questioning from Congress and regulatory agencies, as well as many problems and risks in the crypto market.

Figure 7 Source: RFI

Long term, the interaction between Cryptocurrency and the real world is deepening. On the one hand, Cryptocurrency provides voters with an effective tool against inflation, especially in the increasingly severe background of the Inflation issue, BTC and other Decentralization, limited supply digital assets have become a safe haven in many people's minds.

On the other hand, the rise of stablecoins has provided a new international channel of influence for the US dollar, consolidating its dominance in the global financial system. At the same time, there is a significant rise in voter interest in crypto assets, and encryption companies have also become important sources of political donations, further boosting the influence of crypto assets on the political stage.

With the dust settling from the election, regardless of how Trump fulfills his encryption promise, Crypto Assets have become an undeniable force in American politics. In the future, Crypto Assets will continue to play an important role in real-life production and life, influencing policy trends and market expectations.

Author: Charle Y., Gate.io Researcher

*This article represents only the author's point of view and does not constitute any trading advice.

*This article is original. Copyright belongs to Gate.io. Please indicate the author and source when reproduced, otherwise legal responsibilities will be pursued.