A New Dawn For Crypto: Upwards and Onwards of $100,000 Bitcoin (BTC) has overtaken silver and Saudi Aramco to become the seventh-largest asset in the world. On December 17, it touched an all-time high of USD 108,268.45.

Following Donald Trump's victory over Kamala Harris as the 47th President of the United States, the cryptocurrency ecosystem is jubilant—surpassing a market cap of USD three trillion for the first time. Trump has moved on from his stance on crypto— declaring Bitcoin "not a real money" and criticizing it as "highly volatile and based on thin air"— to become a pro-crypto advocate during his 2024 campaign and vouching to make the US "crypto capital of the planet."

Among the crypto coins, Bitcoin's (BTC) performance has superseded the rest, surging from over USD 69,000 in the early hours of November 6, 2024, to over USD 99,000 on December 6, 2024. BTC has overtaken silver and Saudi Aramco to become the seventh-largest asset in the world. On December 17, BTC touched an all-time high of USD 108,268.45. Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and other altcoins have also seen an uptick in their price tags post-election verdict.

DECODING THE CRYPTO POLITICS: A tracker run by a group called Stand with Crypto noted that 274 pro-crypto candidates had been elected to the House and 20 to the Senate this cycle. This is a stark contrast to President Joe Biden's reluctance to support the Bitcoin and cryptocurrency industry. Biden vetoed the Crypto Custody Bill. During his tenure, FTX filed for bankruptcy and Binance's Changpeng Zhao was arrested. The Securities and Exchange Commission's (SEC) approval of Exchange-Traded Funds also took place.

Now, with an incoming government in the States comprising several pro-crypto candidates, crypto players worldwide are rejoicing and hoping for regulatory ease. Trump's crypto goals include appointing a crypto-friendly SEC chair to replace Gary Gensler and building a national Bitcoin reserve. "Pro-crypto initiatives like the proposed U.S. Bitcoin Strategic Reserve suggest a strategic shift that could unlock significant opportunities. Optimism is further fueled by the potential appointment of a balanced regulatory chair, paving the way for clearer, supportive policies," said Balaji Srihari, business head, CoinSwitch.

IMPACT ON MARKETS: It's aptly said that "When America Sneezes, the rest of the world catches a cold." Case in point, after the US's BTC ETF approval, Hong Kong and Australia jumped on the bandwagon. Hence, Trump's pro-crypto goals and policies are sure to influence other countries that are cautious of the alternative form of payment. According to Vikram Subburaj of Giottus, a US strategic Bitcoin reserve "signals a strong endorsement of crypto as a legitimate asset class." This has given additional encouragement to institutional investors— after ETF approvals early this year—with a record single-day inflow of nearly USD 1.4 billion pouring into spot Bitcoin ETFs on November 7.

"Trump's stance has encouraged more institutional investment and strengthened market sentiment in the U.S., where approximately 30-40 per cent of the population holds crypto," said Edul Patel, co-founder and CEO, Mudrex. Bitcoin sparked a 4-9x jump in trading volumes on Indian crypto exchanges according to media reports.

"The supply of Bitcoin had halved earlier this year. So on one side, demand is skyrocketing and on the other, supply is reducing it's no surprise price is up," added Srihari. While the short-term goal is certainly a price surge, the long-term goal is just one: a clear regulatory framework. "The more important long-term effect would be to have increased legitimacy and a clear regulatory framework. This development could also lead to a more positive regulatory ecosystem across the world," said Sumit Gupta, co-founder, CoinDCX. Concurs Subburaj, "The actual impact will depend on the implementation of these policies and the response from regulatory bodies and the broader financial ecosystem."

A POLICY RELIEF? For Gupta, an increased legitimacy and a clear regulatory framework on US soil "will surely have a nudging effect on Indian policymakers." "This could also make it easier for Indian crypto startups to secure international investments and partnerships, spurring growth and innovation," he added. "Indian regulators are currently drafting a consultation paper aimed at establishing a more robust framework for crypto regulation. While these efforts are in the works, upcoming U.S. policies could provide valuable insights, helping India develop a futureready regulatory framework with global alignment," said Patel. "Observing how global regulations evolve in response to this growing momentum will be critical in the months ahead," he adds.

GOING BEYOND BTC: While Bitcoin leads the way, other coins are also gaining traction. "The recent surge in altcoins such as Ethereum, Cardano, Solana, Avalanche, and Sui indicates a broadening interest beyond Bitcoin. In India, this trend is likely to be mirrored as investors seek diversification and look beyond BTC and ETH," said Subburaj. Gupta notes that tokens tied to artificial intelligence (AI) and meme coins are seeing a growing interest among Indian investors. "With India being the larger market with growing adoption, we can expect to see these numbers doubling down with more regulatory clarity emerging in the next few months," adds Patel.

From November 6 to December 6, ETH rose from over USD 2,400 to over USD 3,800, Solana rose from over USD 167 to over USD 234, while BNB saw a slow growth, rising from USD 567 to USD 714. Notably, memecoin Dogecoin (DOGE) saw a 777 per cent increase in Google searches compared to the daily average four weeks prior according to Cases.gg as of November 14. Elon Musk's favourite coin, DOGE grew from a market cap of over USD 24.8 billion to USD 53.95 billion as of December 19.

While homuncular, meme coins Pepe, Bonk, FLOKI, and Mog Coin saw a rise of 72.88 per cent, 0.86 per cent, 62.75 per cent, and 27.25 per cent rise, respectively in 24 hr volume on December 19.

CAUTION AMID OPTIMISM: Bitcoin is currently consolidating within the USD 102,000 and 105,000 range, with each minor dip being quickly bought up. Subburaj advises that amid possible minor pullbacks and corrections, investors should not panic at such market reactions. Gupta notes that the Relative Strength Index (RSI) introduces some variability, suggesting the possibility of a temporary pullback before resuming an upward trajectory. "Amid the current market enthusiasm traders should avoid excessive leverage, as such sharp upward momentum often precedes periods of heightened volatility and potential corrections," Srihari adds. Shivam Thakral of BuyUcoin notes the drop will boost future confidence. With crypto being a volatile asset, industry players anticipate BTC to reach USD 120,000 in coming weeks.