Donald Trump Elected as U.S. President, Boosting Strong Rally in Crypto Mining Stocks
With Donald Trump securing a decisive victory in the U.S. presidential election, cryptocurrency mining stocks like Marathon Digital, Riot Blockchain, and Hut 8 Corp saw significant increases in pre-market trading. This victory sparked strong optimism on Wall Street, with investors generally expecting Trump to create a supportive regulatory environment for Bitcoin mining.
Market Response and Global Impact
Trump’s victory triggered a rebound not only in the U.S. market but also on a global scale. For instance, Argo Blockchain’s stock price on the London Stock Exchange rose by 14%. In the U.S., companies like MicroStrategy and Coinbase also achieved notable gains of over 13% in pre-market trading.
Following Trump’s election, crypto mining companies and other crypto stocks demonstrated strong performance in Tuesday’s pre-market trading. Throughout his campaign, Trump indicated that he would support the Bitcoin mining sector, which has faced strict regulation under the Biden administration. Marathon Digital (NASDAQ: MARA) saw its share price surge by 12.98% in pre-market trading, currently trading above $18. Other listed crypto mining stocks like Riot Blockchain, Hut 8 Corp, and CleanSpark also rose between 10% and 15%.
Bitcoin Price Hits New Highs
The strong rebound in crypto mining companies is closely linked to the increase in Bitcoin prices. Bitcoin (BTC) reached a new all-time high of $75,988 following Trump’s victory, with a 24-hour volatility of 7.0%. Meanwhile, the entire altcoin market also surged, particularly with meme coins showing outstanding performance in the last 24 hours, such as Dogecoin, which rose by 28%.
Trump’s Promises and Future Outlook
In June 2024, Trump stated his desire for the U.S. to complete the mining of all remaining Bitcoin, emphasizing the country’s potential in the energy sector. He also promised to end the “war” on cryptocurrencies and promote Bitcoin innovation in the U.S. Additionally, Trump reiterated his intention to pardon Ross Ulbricht (founder of Silk Road) and announced plans to remove Gary Gensler from the chair of the Securities and Exchange Commission (SEC).
Crypto Companies Celebrate Trump’s Victory
Trump’s victory not only impacts crypto mining stocks but also resonates throughout the broader crypto market. MicroStrategy (NASDAQ: MSTR) saw a 14.46% increase in pre-market trading, reaching a stock price of 260.Similarly, Coinbase’s (COIN) shares rose by 13.36260.Tuesday’s trading will be an interesting moment for Wall Street as it remains to be seen how the strong global optimism will affect trading outcomes.
Conclusion
Trump’s election has injected strong momentum into the cryptocurrency market, particularly highlighted by the performance of crypto mining stocks. However, market participants should be vigilant regarding the potential for a “sell the truth” phenomenon in the future or whether Trump’s victory will push the market to new highs by the end of the year. Investors should remain cautious and prepared for possible market fluctuations while enjoying the current upward trends.
