This week, cryptocurrencies soared following Donald Trump’s not-so-unexpected victory in the presidential election and the Federal Reserve’s 25 basis point rate cut.
Bitcoin hit an all-time high of $76,618, while Ethereum rallied from below the $2,400 mark to almost $3,000 at the time of writing.
DeFi tokens went up by 20-30%
Traders were particularly bullish on DeFi tokens as they predicted the end of the SEC’s anti-DeFi crusade – Donald Trump intends to remove Gary Gensler as SEC Chairman and adopt a more pro-crypto stance.
Over the last couple of months, Uniswap, Immutable, Crypto.com had all received Wells notices from the SEC, indicating that the agency was preparing to bring charges against them.
Going forward, however, many analysts expect the SEC to drop those charges. $UNI, $IMX, and $CRO tokens all jumped by 20-30% this week, as did major DeFi tokens such as $ENA, $LDO, and $AAVE. Aave TVL has increased by 22% over the last month to surpass $15 billion.
Given that interest rates will continue to decrease across the board, it’s even more likely that investors will flock to DeFi staking opportunities to seek yield.
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- Solana ($SOL): Recently, Solana has soared because of its reputation as the go-to platform for memecoins to build on. But with Trump’s re-election, its prospects of having Solana ETFs approved just went up, which is likely to fuel institutional inflows and a further run-up in $SOL’s token price.
- Remaining S&P 500 earnings: There are still two weeks to go for the remaining companies to report earnings, which, if positive, could continue to bolster markets. Also expect pro-crypto regulations to boost crypto mining stocks in the mid-long term.
- China stimulus: Expected to continue into 2025 and fuel crypto inflows.
There still remains a degree of uncertainty as we head into the last months of 2024. Inflation could rear its ugly head again, and potential Trump tariffs could put a damper on the economy and US-China relations.
Continued conflict in the Gaza strip, Lebanon, and potentially Iran may upset markets, but on the bright side, a new Trump administration is likely to push for a resolution in the Middle East, as well as in Ukraine.
Stay tuned!
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