Bitcoin Steadies Amid Trump's 2024 Presidential Victory

Bitcoin steadied near recent peaks on Thursday, as Donald Trump’s victory in the 2024 presidential election sparked sharp gains in cryptocurrencies due to the prospect of friendlier crypto regulations.

However, while Bitcoin’s rally cooled, other major altcoins continued their recent gains, given their significant discounts compared to 2021 record highs.

Bitcoin steadied at $74,794.7 by 00:19 ET (05:19 GMT), having surged to a record high of $76,401.4 on Wednesday.

Trump Election Sparks Bitcoin Rally

Gains in Bitcoin coincided with Trump pulling ahead of Kamala Harris in early vote counting and later being declared president-elect. Trump’s pro-crypto stance promises friendly regulations, potentially boosting Bitcoin's credibility as an investment.

Bitcoin’s price rose sharply on this notion, crossing record highs last seen in March 2024. Broader cryptocurrency prices increased, with crypto stocks like Coinbase Global Inc (NASDAQ:COIN) and Marathon Digital Holdings Inc (NASDAQ:MARA) posting strong gains.

Trump’s swift victory cleared major market uncertainties, leading to a rally in risk-driven assets, including U.S. stock indexes, which reached record highs on Wednesday.

However, this rally seemed to be cooling with the Federal Reserve meeting conclusion pending, where a 25-basis point interest rate cut is widely expected. The dollar steadied at four-month highs before the Fed meeting, stifling further risk-driven asset gains.

Traders exhibited caution ahead of any signals from the Fed regarding future rate cuts, especially considering the Trump presidency and ongoing inflation concerns.

Crypto Prices Today: Altcoins Extend Gains

While Bitcoin’s rally cooled, major altcoins experienced extended gains as traders anticipated a bull run similar to 2021.

World no.2 crypto Ether rose nearly 10% to a three-month high of $2,848.60.

SOL, XRP, ADA, and MATIC surged between 1.8% and 7%, while DOGE saw a 5.8% decline after recent strong gains.

Most major altcoins remain substantially discounted compared to their record highs in 2021, following three years of lagging behind Bitcoin.