United States crypto stocks ended the trading day on massive gains — most at double-digits — after a sweeping election win by Donald Trump and a new Bitcoin all-time high.
Bitcoin, the world's leading cryptocurrency, has experienced a significant surge in price following Donald Trump's victory in the US presidential election. This unexpected outcome has sparked optimism among traders, leading to massive gains for crypto stocks. As Republicans potentially gain control of Congress, the path seems clear for GOP-backed crypto bills to pass into law. In addition to the political landscape, Bitcoin's skyrocketing price has also contributed to the surge in stock prices. Let's explore the details of this exciting development in the world of cryptocurrencies.
United States Crypto Stocks Reap Double-Digit Gains
Crypto stocks in the United States closed the trading day with impressive gains, with many experiencing double-digit increases. Coinbase Global Inc (COIN), one of the largest crypto exchanges and a prominent donor during the election cycle, saw the biggest gain on November 6, closing up 31.11% at $254.3. This surge brings Coinbase's year-to-date gains to an impressive 62.1%, according to Google Finance. Other significant gainers include Robinhood Markets Inc (HOOD), which jumped 19.6%, and Bitcoin miner MARA Holdings Inc (MARA), formerly Marathon Digital, also gaining 19.6%. MicroStrategy Inc (MSTR), a company known for its Bitcoin investments, closed up over 13%. Additionally, Bitcoin miners Riot Platforms Inc (RIOT) closed up 26%, CleanSpark Inc (CLSK) up 23%, and Hut 8 Corp (HUT) gained 11%.
Optimism Surrounding Republican Control
Traders are seemingly optimistic about the possibility of Republicans seizing control of Congress alongside the White House. This potential outcome would leave little resistance for two GOP-backed crypto bills to become law. During his campaign, President-elect Donald Trump expressed strong support for cryptocurrencies and even promised to create a strategic Bitcoin stockpile. The latest projections show that Trump is on track to secure 312 electoral college votes, well above the 270 needed for victory. He is currently leading in key swing states like Nevada and Arizona, which are yet to be called. While the Republican party has already secured a majority in the Senate, there are still 40 House seats left to be called, which could potentially change the dynamics.
Potential for Crypto Bills to Pass into Law
With a Republican majority in the Senate to be seated in January, there is a high chance that the GOP-backed Financial Innovation and Technology for the 21st Century Act (FIT21) could be passed into law. This bill aims to give more regulatory control over cryptocurrencies to the Commodity Futures Trading Commission. It had initially passed the House in May but stalled in the Senate banking committee. Furthermore, the GOP's stablecoin regulatory framework bill could also be back in play with a Republican House majority. This bill had previously passed the Financial Services Committee in July but had not made significant progress since then.
Bitcoin's Price Surge Fuels Stock Prices
Bitcoin's price has been steadily rising and reached new all-time highs throughout the New York trading day. It reached its peak of $76,509.56 on Coinbase just one minute before the New York Stock Exchange closed at 4 pm (9 pm UTC). This remarkable price surge has undoubtedly contributed to the significant gains seen in crypto stocks. Bitcoin's increasing value has attracted investors and traders alike, driving up demand for crypto-related stocks. As Bitcoin continues to establish itself as a mainstream investment, its impact on the stock market is becoming increasingly evident.
Overall, the US election results and Bitcoin's soaring price have created a perfect storm for crypto stocks. Traders are optimistic about the possibility of GOP-backed crypto bills passing into law under a Republican-controlled government. Additionally, Bitcoin's skyrocketing price has further fueled the gains seen in crypto stocks. As the crypto market continues to evolve and gain mainstream acceptance, it will be interesting to see how these developments shape the future of cryptocurrencies and their associated stocks.