How crypto became the biggest winner of Trump 2.0

Donald Trump’s decisive victory in the presidential election last week has sent shockwaves through financial markets as the so-called “Trump trade” ignited around the world.The dollar gained the most in years, bonds slumped, the stock market surged and gold dipped.

And then there’s Bitcoin, whose price soared past $90,000 this week, with its market cap of $1.5 trillion exceeding that of all but the largest companies in the world.Benjamin Graham, the father of value investing, once said that markets are voting machines in the short run and weighing machines in the long run.It appears investors are voting with their feet and their dollars, sending a wide range of assets higher.

But it will take many months — if not years — to weigh the true impact of a Trump presidency on the many industries and asset classes that so rapidly responded to his re-election.And while you can’t prove a counterfactual, it’s unlikely that markets would have reacted in quite the same positive way had Harris been elected.The biggest winner of the Trump trade has been a big winner is Web3, the blockchain-enabled internet, and assets like Bitcoin, Ethereum, and Solana.  Web3 advocates and investors have high hopes for what a Trump administration might bring and they’re plowing record amounts of money into these assets.

On Nov.7, investors put $1.4 billion into Bitcoin ETFs followed by another $1.1 billion on Nov.

11.Interestingly, Biden’s election win in 2020 also precipitated a rally in Bitcoin, with the price soaring 149% from Nov.

5, 2020, until inauguration day the following January.  At the time, there was optimism that the new administration would offer a fresh start for the crypto industry.As of Nov.

14, Bitcoin is up 33% since Trump’s re-election.It appears that once again animal spirits have been unleashed.Consider Dogecoin (DOGE), a memecoin — or digital asset based on some irreverent internet culture — that has climbed more than 70% in just a week, ...