Crypto Stocks Surge 10% as Trump Victory Boosts Market

• U.S. crypto equities have surged over 10% as Bitcoin surpassed $75,000, reaching a new record.

• MicroStrategy is nearing its all-time high, gaining 12% in pre-market trading.

Bitcoin's Record Climb and Market Reactions

U.S. crypto stocks saw a notable increase in pre-market trading after Bitcoin (BTC) rose above $75,000. This surge coincided with Donald Trump's projected victory in the U.S. presidential election, confirmed by his securing over 270 electoral college votes.

• MicroStrategy (MSTR), the largest corporate Bitcoin holder, rose 12%, nearing $255 and only a few percentage points away from a record high, which would mark a 280% increase this year.

• Coinbase also saw a 12% gain, alongside crypto miner Riot Platforms (RIOT). Other miners such as Marathon Digital Holdings (MARA) and IREN (IREN) experienced increases of 11% and 12%, respectively.

Notable Performers in the Market

• Tokyo-based Metaplanet (3350), which adopts a Bitcoin acquisition strategy similar to MicroStrategy, increased by 24%. The investment firm has seen an impressive 1,100% growth year-to-date, with CEO Simon Gerovich reporting a record trading volume of 11.63 billion yen ($76 million).

• Semler Scientific (SMLR), another Bitcoin investor, experienced a 30% rise in its share price recently.

• Tesla, whose CEO Elon Musk supported Trump during the election, rose 15% as he has expressed support for cryptocurrencies.

Potential Impact of Trump's Presidency on Crypto Regulation

The uncertainty surrounding the election, which showed closely matched candidates in opinion polls, has led to speculation about favorable regulatory changes for the crypto industry under a Trump administration. André Dragosch, head of research in Europe at Bitwise, suggested that a pro-crypto regulatory environment could catalyze a new bull run.

• Dragosch noted, “A more pro-crypto stance among U.S. regulators will likely allow a more diverse set of investment opportunities such as ETFs. There are still several spot crypto ETFs awaiting SEC approval, including those for Solana and XRP. Crypto service providers may operate with less regulatory pressure, signaling an end to 'Operation Chokepoint 2.0.'”

Historical Performance of Bitcoin Post-Elections

Historically, Bitcoin has performed well following U.S. elections, regardless of the outcomes. Dragosch emphasized that a Trump victory is likely to accelerate the anticipated bull run in Bitcoin and other crypto assets.

• He stated, “The latest U.S. election results imply a significant shift in political sentiment towards a pro-crypto stance in the U.S., which will likely enhance the mainstream adoption of crypto assets.”