Crypto Market Hits Record $3.2 Trillion, Powered by Trump’s Election and Bitcoin Surge

Global Crypto Market Surpasses $3.2 Trillion, Sparking Optimism Amid Trump’s Election

The global cryptocurrency market has hit an all-time high, surpassing a staggering $3.2 trillion, according to CoinGecko, as the U.S. election of Donald Trump ignites a new wave of optimism in the sector. This milestone represents a significant resurgence from the earlier months of the year when the market had been stagnant, with prices and trading volumes remaining flat.

Bitcoin, the dominant force in the crypto market, played a key role in this growth, reaching a record-breaking price of $93,480. As the leader of the market, Bitcoin’s rise is often followed by a boost in the value of altcoins — smaller cryptocurrencies such as Ethereum and Dogecoin, which have also surged in recent weeks.

Matthew Dibb, CIO at cryptocurrency asset manager Astronaut Capital, pointed out, “Generally, the way this market works is that Bitcoin breaks out first, and then the rest of the altcoins follow. So, we can expect the total market cap to continue to increase as capital rotates into other assets.”

The surge in the market has been fueled, in part, by renewed optimism around U.S. cryptocurrency regulations under the Trump administration. Trump's pro-crypto stance and the election of several crypto-friendly lawmakers have eased concerns about tighter regulation, which had previously kept many investors on the sidelines. Bitcoin, in particular, has seen a remarkable 30% increase since the November 5 U.S. election, with its value climbing to $90,000.

Crypto’s Revival After a Tough Year

The crypto market’s resurgence comes after a tumultuous year that saw the collapse of major crypto platforms, such as the FTX exchange, and the so-called "crypto winter" that drove Bitcoin prices below $20,000 at the start of the year. However, the latest rally shows that investor confidence has returned — with Bitcoin doubling in value and smaller coins like Ethereum and Dogecoin gaining significant traction.

Ethereum, the second-largest cryptocurrency by market cap, has increased by 33%, reaching $3,220, while Dogecoin — a volatile token popularized by Elon Musk — has soared by 140%. The enthusiasm isn’t just limited to digital currencies: crypto exchange-traded funds (ETFs) are also experiencing strong buying activity, indicating that traditional financial institutions are beginning to take more of an interest in crypto investments.

Carl Szantyr, founder of Blockstone Capital, said, "Bitcoin enthusiasts are known for bold predictions, but hitting $100,000 by the end of the year seems feasible given the current momentum."

Crypto Market Capitalization Still Small Compared to Traditional Assets

Despite the impressive growth, cryptocurrency's market capitalization is still small compared to more traditional assets. For example, the total value of all gold ever mined is nearly $19 trillion, far surpassing the $3.2 trillion crypto market. Similarly, the market capitalization of the S&P 500 index stands at around $50.6 trillion.

Furthermore, some parts of the crypto ecosystem still show signs of struggle. Non-fungible tokens (NFTs), which boomed during the pandemic, have seen prices plateau in recent months, with the average sales price hovering around $2,000–$2,700. However, analysts believe that the broader crypto market’s revival could bring renewed interest to NFTs and other blockchain-based innovations in the coming months.

In Singapore, DBS Bank, which runs a digital exchange, reported a surge in trading activity, executing more than one-third of last year’s total volume in just the first ten days of November. However, the bank’s chief commercial officer, David Hui, noted that institutional investors haven’t yet flocked to more speculative areas of the market, such as decentralized exchanges or "exotic" crypto platforms.

Looking Ahead: DeFi, Tokenization, and Blockchain Innovation

While there are still some cautionary signs, many in the crypto industry are optimistic that the new market capitalisation will continue to drive interest in emerging areas of the blockchain ecosystem. Danny Chong, co-founder of decentralized asset platform Tranchess, highlighted that increased interest in the space could lead to deeper engagement with DeFi (decentralized finance) and blockchain-based payment systems.

“The heightened market cap, if sustained, will likely attract even more interest in innovative sectors like tokenization of real-world assets and blockchain-enabled financial services,” said Chong. This could lead to new investment opportunities as blockchain technology continues to disrupt traditional financial systems.