Why Crypto Market is Up Today? The ‘Trump Effect’ in Action

In the last 24 hours, the cryptocurrency market has seen an impressive 1.9% rise. With a market cap of $3.76 trillion and trading volumes reaching $227.7 billion, the momentum is undeniable. Almost all of the top ten cryptocurrencies have seen gains.

Bitcoin is up by 2.7%, Ethereum by 1%, XRP by 2.8%, Solana by 8.2%, BNB by 2.1%, Dogecoin by 6.2%, and Cardano by 1.7%.

What’s causing this sudden rise in the market? Let’s break it down!

Crypto Market Overview 

On November 5, 2024, the cryptocurrency market was valued at $2.22 trillion. By November 20, it had increased by 37.38%. On November 21, the market entered a range between $3.11 trillion and $3.64 trillion. Right now, the market cap is around $3.54 trillion, just 2.82% below the high of this range.

Since January 10, 2025, the market has grown by 12.38%, with the latest 24-hour increase of 1.9%.

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Key Reasons Why the Crypto Market Is Up Today

Several factors are contributing to today’s market growth. Here are the main reasons:

Pro-Crypto Leadership in Washington

Pro-crypto executive Mark Uyeda, who was recently appointed by US President Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President as the interim chairman of the Securities and Exchange Commission, has announced the creation of a task force to draft a new regulatory framework for the cryptocurrency sector. 

Trump’s Pro-AI stance 

Trump withdrew a 2023 executive order released by joe biden joe biden Joe Biden President to reduce the risks that AI poses to consumers, workers and national security. The AI community has welcomed the move. SoftBank and OpenAI have jointly announced an AI infrastructure project, named Stargate. The total market cap of the AI token segment alone has surged by 7.6% in the last 24 hours.  

Crypto Lawsuits to be Buried?

Trump’s pardon of Ross Ulbricht, the Silk Road founder, has caught attention in the market. There’s also growing speculation that the Trump administration could drop lawsuits against major crypto companies like Ripple, which has gained 10.3% in the past week.

$TRUMP and $MELANIA Trigger Excitement

At least two meme coins, $TRUMP and $MELANIA, from the Trump family had hit the meme coin market hours before Trump’s inauguration. Both of them have created excitement in the market. Though $MELANIA has dropped by 23% in the last 24 hours, $TRUMP has grown by 3.2%. During the period, the meme coin market cap has climbed by over 3.6%. 

The rise in the crypto market today reflects growing confidence in the Trump administration’s pro-crypto approach and expectations for clearer regulations. While speculative trading, like the $TRUMP meme coin, adds some volatility, the overall market sentiment remains optimistic, suggesting a bullish trend ahead.

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