The Kobeissi Letter highlighted Bitcoin’s substantial gains following the 2024 U.S. election. It states that the crypto emerged as the “single biggest winner.”
Moreover, with pro-crypto candidates securing prominent victories, Bitcoin and the crypto sector as a whole appear to have received a political boost, gaining further legislative support. This development has led to increased market activity, including an intense Bitcoin short squeeze, driving prices upward.
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Pro-Crypto Candidates Take the Lead
According to The Kobeissi Letter, 50 out of 58 congressional candidates endorsed by pro-crypto Political Action Committees won their races. Besides, the remaining races are still leaning toward pro-crypto candidates.
This bipartisan support included 26 Democrats and 19 Republicans, demonstrating the non-partisan nature of crypto advocacy in Congress. Overall, these results indicate the influence exerted by the crypto sector on the recent election.
Crypto PACs invested heavily in these candidates, with an estimated $245 million allocated to pro-crypto donations. In one key race, crypto interests directed $40.8 million toward the Ohio Senate campaign, supporting Bernie Moreno against incumbent Sherrod Brown, a prominent crypto critic.
Moreno’s victory marked a symbolic win for the crypto community, particularly in light of Brown’s past opposition as Senate Banking Chair.
Impact of Increased Crypto Market Cap
In the days following the election, Bitcoin’s market cap surged, now over $1.7 trillion. This surge makes it one of the largest assets globally.
Besides, this climb coincided with the elimination of over $100 million in Bitcoin shorts within 24 hours. This has created a massive short squeeze that intensified Bitcoin’s upward momentum.
The increased market cap puts Bitcoin ahead of all but six publicly traded companies worldwide, underscoring its growing influence within financial markets. The Kobeissi Letter reports that Bitcoin has attracted investors who have been buying dips throughout the year.
Following the election results, Bitcoin price has climbed significantly. At press time, BTC’s price is $88,447.89, showing a 9.27% increase in just a day and a nearly 30% gain over the week.
Read also: Is Ethena (ENA) Price About to Explode? Analyst Predicts a 7x Rally
Trump’s Crypto Stance and Bitcoin Reserve Speculations
Donald Trump, who received $22 million in campaign contributions from crypto sources, expressed support for the crypto sector without committing to the concept of a Strategic Bitcoin Reserve.
Although he pledged not to sell government Bitcoin holdings, he stopped short of endorsing a reserve, leaving room for speculation regarding his administration’s potential crypto policy.
This neutrality has left market analysts closely watching for any policy shifts that might further bolster Bitcoin’s institutional credibility. Trump’s stance signals potential future support without explicitly advocating for new crypto-specific initiatives.
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