Donald Trump Wins U.S. Presidential Election – Market Info

The market capitalization of cryptocurrencies has fluctuated significantly over the last two weeks, with an approximate 5.5% increase over this period. Initially, it rose slightly, reaching a peak of around 2.4 trillion EUR. Following this high, the market capitalization declined, dropping to about 2 trillion EUR. It then began to gradually recover, reaching a level of approximately 2.3 trillion EUR.

Source: coinmarketcap

Donald Trump Wins U.S. Presidential Election

Donald Trump has won the U.S. presidential election. After securing key states such as North Carolina and Georgia, he was declared the official winner, having surpassed the 270 electoral votes needed. The New York Times projects that Trump may even reach 306 votes, which would represent a significant victory margin. CNN also reported that he is “on the brink of a sweeping victory,” and Trump has already given a speech in Florida.

Source: TA3

During his campaign, Trump promised various measures for the crypto community. He declared that on his first day, he would remove SEC Chairman Gary Gensler, support Bitcoin mining in the U.S., establish a strategic Bitcoin reserve, and prevent the creation of a central bank digital currency (CBDC). He also committed to releasing crypto activist Ross Ulbricht, who was sentenced for operating the Silk Road dark web marketplace. These promises have raised high hopes in parts of the crypto community, though some experts caution against being overly optimistic.

Trump’s promise to remove Gensler is based on the fact that, under his leadership, the SEC has taken actions against several crypto companies, including Coinbase and Uniswap. In addition, Trump plans to improve conditions for American Bitcoin miners and aims to have all remaining Bitcoin mined within the U.S.

Trump also hinted at creating a strategic Bitcoin reserve by preventing the sale of Bitcoin seized by law enforcement, which he believes could help reduce the national debt. This proposal has received support from Senator Cynthia Lummis, who introduced a bill to create such a reserve. However, despite these promises, some in the crypto community doubt Trump’s ability or willingness to actually follow through on his plans. We will just have to wait and see how it all unfolds. Source

“The Perfect Storm” for Bitcoin

Significant events and key institutions in the crypto space, such as the U.S. Federal Reserve and the Chinese government, are creating conditions for major shifts in the crypto world.

One of the key factors driving Bitcoin forward is the expected easing of monetary policy by the U.S. Federal Reserve. Recently, interest rates were reduced by 50 basis points, and another 0.25% reduction is anticipated. Analysts believe this will increase liquidity, potentially weakening the dollar and making Bitcoin more attractive as an alternative asset. Agne Linge from WeFi remarked that the increased availability of loans may drive demand for assets like Bitcoin, especially when the dollar’s value declines.

China is also a part of this dynamic, as it is reportedly preparing a massive stimulus package of 10 trillion yuan (about 1.3 trillion EUR) to revive its economy. Certain sources indicate that this amount could be even higher if Trump officially wins the election, which could lead to inflation and increase demand for alternative investments like cryptocurrencies.

Historically, the fourth quarter has been positive for Bitcoin, especially in “halving” years when the supply of new Bitcoins is reduced. Analysts at Bitfinex note that in these years, Bitcoin has achieved an average return of 31.34%, which adds optimism for the remainder of 2024. This seasonal effect, along with record levels of open Bitcoin options and futures contracts, has fueled a wave of optimism in the market.

Trump, who openly supports Bitcoin and cryptocurrencies, is also a key player in this. He has hinted that he is considering establishing a national Bitcoin reserve, which could even be used to address national debt. Trump also sees the potential for the U.S. to become the “crypto hub” of the world by promoting regulations that would directly support cryptocurrency mining on American soil. Source

Pre-Election Investors Withdraw $541 Million from Bitcoin ETFs

This week, Bitcoin ETFs saw their largest outflow of funds since May, with $541 million withdrawn on Monday alone. Agne Linge attributes this outflow to the U.S. presidential election. The only fund to see inflows was BlackRock’s iShares Bitcoin Trust (IBIT), which gained $38.4 million, while all other funds either stagnated or experienced significant outflows.

The largest outflow occurred in the Fidelity Wise Origin Bitcoin Fund (FBTC), which saw $138.3 million withdrawn, while ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) lost $138.3 million and $79.9 million, respectively.

Despite the long-standing regulatory uncertainty in this sector, both presidential candidates have made promises toward the crypto community, including clearer regulation. However, Bitcoin has historically experienced greater volatility during election cycles and times of political uncertainty. “Until election results are known, risk assets will remain less attractive to investors,” Linge told TheStreet Crypto.

Despite its volatility, Bitcoin has risen by 60% this year, significantly outperforming traditional stable investments like gold. Source

Source: Farside Investors

Deutsche Telekom Becomes a Pioneer in Green Bitcoin Mining

Technology giant Deutsche Telekom has partnered with Bankhaus Metzler to launch a unique Bitcoin mining project in Germany that uses surplus renewable energy.

This initiative, stemming from T-Mobile’s parent company, follows the successful implementation of similar regulated energy mining projects in the U.S. and Finland. The pilot project in Germany aims to test the efficiency of Bitcoin mining as a tool for dynamic energy regulation in Europe’s largest economy.

Oliver Nyderle, head of Digital Trust & Web3 Infrastructure at Deutsche Telekom MMS, described the project as “digital monetary photosynthesis.” According to him, this system converts surplus energy into digital value and addresses challenges related to managing fluctuations in renewable energy within the power grid.

“With the growing number of renewable sources and the associated fluctuations in available energy, the need for controllable power that is quickly accessible increases. For this, we need mechanisms that can respond flexibly to changes and absorb fluctuations,” Nyderle explained. Bitcoin mining facilities could play a crucial role in future power grid stabilization due to their flexibility.

The technology partnership includes RIVA Engineering GmbH, making this a comprehensive collaboration between the telecommunications, banking, and engineering sectors. Hendrik König, Head of Digital Assets at Bankhaus Metzler, emphasized the broader significance of this project, stating, “Blockchain technology is becoming increasingly significant in operational processes beyond the financial sector.” Source

Michigan State Pension System Purchases Ether ETFs

The Michigan state pension system recently purchased 460,000 shares in the Grayscale Ethereum Trust (ETHE), valued at approximately $10 million. This step followed its late July purchase of ARK 21Shares Bitcoin shares worth $6.6 million. Along with ETHE shares, the pension fund also acquired 460,000 shares in the Grayscale Ethereum Mini Trust (ETH), bringing its total investment in ETH ETFs to around $11.2 million.

The Michigan pension system thus becomes the first state pension fund to gain exposure to Ethereum ETFs. According to Eric Balchunas, Bloomberg’s lead ETF analyst, this move is a significant milestone for Ethereum (ETH). Balchunas noted that the pension fund invested more in Ether than in Bitcoin, even though Ethereum is currently growing more slowly than Bitcoin.

Ethereum ETFs, which were launched with high expectations in July, have shown limited success so far, with outflows nearing half a billion dollars. In stark contrast, Bitcoin ETFs have enjoyed strong interest, with total inflows exceeding $24 billion. Robert Mitchnick, Head of Digital Assets at BlackRock, suggested that potential investors remain uncertain about Ethereum’s investment narrative. ETF analyst Nate Geraci recently pointed out on social media that Ethereum’s concept is more complex for investors, indicating the need for better advisor education. Source

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