The cryptocurrency market has experienced a resurgence since the U.S. presidential elections. The incoming administration is expected to be significantly more favorable toward the crypto space. After enduring four years of regulatory challenges, the landscape is shifting, and we anticipate a stream of positive developments in the coming years.
The reversal of Operation Chokepoint, led by SEC Chairman Gary Gensler, is expected to stimulate increased investment across the crypto economy. It has been just two weeks since the U.S. election, and the crypto market has already responded with a 30% increase in total market capitalization.
This week, the total market cap, represented by $TOTAL, finally surpassed its all-time high from 2021. A deeper analysis reveals that the majority of this growth has been driven by Bitcoin ($BTC), which is now approaching the psychological $100,000 mark. Fueled by the popularity of Bitcoin ETFs and robust institutional buying, Bitcoin's dominance has risen to 60%. With nearly a $2 trillion market cap and a more favorable environment under the new administration, the future looks promising for Bitcoin and the broader cryptocurrency market.
In contrast, the total market cap of altcoins, represented by $TOTAL2, remains 40% below its all-time highs, while the market cap of smaller altcoins, denoted by $OTHERS, still needs to grow by 70% to reach its peak from 2021.
At Incrementum, we remain bullish on Bitcoin’s prospects for 2025 and beyond. However, we are even more optimistic about the potential of smaller altcoins, which have been systematically suppressed under the previous U.S. administration. 🚀
