Crypto stocks in the United States finished trading on a strong upswing, with several leading companies in the sector recording double-digit gains following a major electoral win for Donald Trump and a fresh all-time high for Bitcoin. The boost in the crypto market came as investors anticipated the potential for favourable legislation with the Republican Party set to hold a majority in Congress and Trump’s stated pro-crypto stance.
Coinbase Global Inc (COIN), one of the largest contributors in this election cycle, led the rally, surging 31.11% to close at $254.3. With this leap, Coinbase’s stock has now appreciated by 62.1% this year, according to Google Finance. This gain underscored the broader enthusiasm among investors, especially those eyeing potential policy changes from a Republican-led government that could accelerate the acceptance and regulation of digital assets.
Robinhood Markets Inc (HOOD), the popular trading app that has attracted a younger demographic of investors, also posted impressive gains, jumping 19.6% for the day. Similarly, Marathon Digital, now rebranded as MARA Holdings Inc, saw significant growth with a near 20% increase, driven by renewed interest in Bitcoin mining companies. MicroStrategy Inc (MSTR), a major Bitcoin holder, also climbed over 13%, indicating investor confidence in firms with substantial cryptocurrency reserves.
Other Bitcoin mining companies joined in the rally. Riot Platforms Inc (RIOT) surged by 26%, CleanSpark Inc (CLSK) closed up 23%, and Hut 8 Corp (HUT) gained 11%. This spike across multiple sectors of the crypto industry reflects investor optimism around a Republican administration potentially advancing crypto-friendly policies. The gains were bolstered by Trump’s campaign promise to create a strategic Bitcoin reserve for the United States, marking a notable shift towards mainstream acceptance of digital assets.
Investors appear hopeful that a GOP-controlled Congress would provide a supportive legislative environment for the crypto industry. A key focus is the Financial Innovation and Technology for the 21st Century Act (FIT21), which seeks to clarify regulatory oversight by allocating more authority to the Commodity Futures Trading Commission (CFTC). While FIT21 passed the House in May, it has since been held up in the Senate Banking Committee. With a Republican majority expected in the Senate, proponents of FIT21 are optimistic that it could advance in early 2025.
The broader gains in crypto stocks were reinforced by Bitcoin’s new all-time high, which reflects renewed enthusiasm for digital assets as investors consider how a pro-crypto administration could impact the regulatory landscape. Many traders expect that Trump’s administration will push for reduced regulatory barriers, encouraging innovation within the digital finance space. The president-elect’s advocacy for a Bitcoin stockpile, in particular, suggests a symbolic shift towards recognising Bitcoin as a strategic asset for the United States.
The Senate, set to lean Republican in January, is well-positioned to pass FIT21 and other bills that could clarify crypto regulations. Advocates of FIT21 argue that allocating more regulatory authority to the CFTC would allow for a more streamlined approach to regulating digital assets. This move could potentially reduce legal ambiguities that have affected major players in the industry, providing them with clearer guidelines for compliance and operation.
Robinhood, which allows users to trade cryptocurrencies alongside traditional stocks, has also benefited from these developments. The company’s stock jump of 19.6% underscores investor confidence in a platform that appeals to retail investors—a demographic that often plays a pivotal role in cryptocurrency market dynamics.
MARA Holdings, formerly known as Marathon Digital, has also seen a boost due to its shift towards Bitcoin mining—a sector that could see more investment with a supportive administration. Similarly, MicroStrategy’s gain of over 13% reflects investor interest in firms that are directly tied to Bitcoin’s value. As one of the largest institutional holders of Bitcoin, MicroStrategy has positioned itself as a bellwether for institutional involvement in cryptocurrency.
Riot Platforms, CleanSpark, and Hut 8 are all Bitcoin miners that have benefitted from increased confidence in the sector. Riot’s 26% increase, CleanSpark’s 23%, and Hut 8’s 11% gain signal a broader endorsement of the mining industry, which has often been subject to scrutiny over energy consumption. With Trump’s administration potentially easing regulatory pressure, mining companies may be poised for further growth.
The response to the election results has not only lifted individual stocks but also contributed to a broader increase in market sentiment around digital assets. The alignment of a pro-crypto president-elect with a supportive Congress could ease the path for crypto-specific bills, which may create a more robust regulatory framework.
While the focus is currently on Trump’s win and the possibility of crypto-friendly policies, the market will likely also watch for more details on his plans for a Bitcoin reserve. The idea of the United States holding a strategic Bitcoin stockpile could further legitimise cryptocurrency as a valuable asset class, especially if other countries consider similar moves. For now, the market remains buoyed by the potential for a clear regulatory framework that could allow crypto companies to operate with fewer obstacles.
The post-election rally in crypto stocks highlights the sensitivity of the industry to political shifts, especially those that could influence policy changes. As the dust settles on the election, investors will be watching for concrete steps from the new administration on crypto policy. A shift towards a more defined regulatory environment could offer the industry the stability it has long sought, potentially driving further gains across the crypto sector.
