In what feels like an eternity, the global crypto market cap has once again reclaimed the $3 trillion level after achieving such a feat last in 2021. Notably, the digital asset industry mirrors immense bullishness post-U.S. elections this year that saw Donald Trump resume the presidency. In light of this event, a ripple effect appears to have unfolded across the sector, pushing the market to witness phenomenal gains.
Here’s a brief collection of key factors that aided the global cryptocurrency market cap in reclaiming the highly optimistic $3 trillion level after last hitting so in 2021.
Donald Trump’s Win In U.S. Elections Sparks Crypto Market Cap Growth
Notably, Donald Trump’s pro-crypto win and reelection to the White House has significantly boosted the cryptocurrency market.
The former president’s promises to turn the nation into a crypto capital have added to optimism among market watchers globally. Aligning with this endeavor, a recent CoinGape Media report spotlights Trump’s intentions to appoint pro-cryptocurrency figures to lead major financial regulatory bodies in his second term. This is one of the primary reasons behind the boosted growth market sentiment in the digital asset sector.
Additionally, with the speculations of a BTC strategic reserve for the U.S. on the rise in light of the former president’s reelection, broader market sentiments remain optimistic. Other countries like Bhutan are also seeing their BTC reserve soar, adding to the growing global crypto market cap.
Macro & Micro Events Pour Further Bullishness Into The Sector
Meanwhile, a stockpile of other factors appear to have fueled the cryptocurrency market cap surge in recent days. After a 50 bps rate cut by the U.S. Fed earlier this year, this quarter saw a 25 bps rate cut, glimmering hope for risk assets. Simultaneously, the market anticipates another 25 bps by the end of the year, adding to the industry’s growth.
On the other hand, Bitcoin’s market dominance saw a significant increase, nearing 60% amid the current bullish market. Simultaneously, Ethereum’s market dominance totaled 13.5%. The growing market caps underscore a blooming digital asset sector, aligning with the market cap topping the $3 trillion level.
Further, the growth also aligns with institutional FOMO post-Trump’s win in the U.S. elections. Bitcoin ETFs showcase robust growth, aligning with rising institutional demand for the asset. Notably, Sosovalue data shows billions of dollars in weekly inflows recorded within spot BTC ETFs as November kicked off. BlackRock leads the pack, marking the lion’s share in inflows while also underscoring rising institutional demand for the flagship asset with majority market dominance. This data adds to the growing market cap, topping $3 trillion.
Lastly, the meme coin sector’s frenzy has also aided the market cap in re-scaling previous highs. With prominent meme coins like DOGE and SHIB rallying unprecedently in recent days, the market cap leverages growth. Overall, the abovementioned factors played a significant role in urging the global crypto market cap and reclaiming the $3 trillion level again after 2021.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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