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 J. Trump is a US-based entrepreneur, Pro-crypto Politician, and the 45th and 47th President of the United States of America. He understands the importance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto leader.   Quick Facts   Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Known For Businessman, Pro-Crypto Politician   Once doubtful about Bitcoindominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his kitty. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.   Donald Trump - Career Highlights & Events   2016 – Elected as the 45th President of the United States from the Republican Party.   2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments   2019 – Criticized Bitcoin and Libra on X, dubbing them as "not money"   2024 – Campaign signals potential openness to crypto-friendly reforms   2025 –  Elected as the 47th President of the United States from the Republican Party.   A meme coin, $TRUMP, is associated with Donald Trump, which is listed on the Solana blockchain platform. His family also backs World Liberty Financial (WLF), a crypto venture.     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 Jr. is a US-based politician and a former senator. He is the former (46th) Democratic President of the America. In the case of crypto, Biden has had a cautious but growing perspective as the needs of fintech market.   Initially, Biden and his administration prioritized consumer protection and regulatory clarity. However, with the growing needs and demands from crypto leaders, and some from US states, he is now changing his view on crypto.   On March 2022, Biden signed an Executive Orders, that have further initiated studies into Central Bank Digital Currencies (CBDCs) and the regulation of crypto markets.   Quick Facts   Full name Joseph Robinette Biden Jr. Birth 20-11-1942, Scranton, Pennsylvania, United States Nationality American Education BA from the University of Delaware Known for Active in US Politics   Joe Biden - Career Highlights & Events   2020 – Elected 46th President of the United States   2021 – Signed Executive Order to review digital asset policies   2022 – Tasked federal agencies with developing crypto regulation frameworks   2023 – Led discussions on global crypto regulation at the G7 Summit   2024 – Supported research into U.S. CBDC through the Federal Reserve     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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