Why Crypto Market is Up Today? The Trump Effect on Crypto and AI
The cryptocurrency market grew by 1.9% in the past 24 hours. As of this writing, the cryptocurrency market cap is $3,763,980,625,636, with a 24-hour trading volume of $227,680,784,362. Almost all of the top ten cryptocurrencies are experiencing growth today.
Bitcoin grew 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%. Why is the cryptocurrency market rising today? Let’s break it down quickly! Ready?
Cryptocurrency Market Overview
As of November 5, 2024, the total market capitalization of the cryptocurrency market is US$2.22T. Between November 5 and 20 alone, the market recorded a 37.38% increase. On November 21, the market entered the range of $3.11T to $3.64T.
As of now, the cryptocurrency market capitalization is approximately $3.54T, which is at least 2.82% below the high of the range mentioned above.
This means that the market has not yet broken out of this range. Since January 10, 2025, the cryptocurrency market has surged nearly 12.38%. As mentioned earlier, the market gained 1.9% in the past 24 hours alone.
Top Reasons Why Cryptocurrency Markets Are Rising Today
Here are the top reasons why the cryptocurrency market is rising today.
SEC plans to enact cryptocurrency-friendly regulations
Pro-crypto executive Mark Uyeda, who was recently appointed interim chairman of the U.S. Securities and Exchange Commission by U.S. President Donald Trump, announced the formation of a working group to draft a new regulatory framework for the cryptocurrency industry.
Trump’s pro-AI stance
Trump withdrew a 2023 executive order issued by Joe Biden that aimed to reduce the risks posed by artificial intelligence to consumers, workers and national security. The AI community welcomed the move. SoftBank and OpenAI jointly announced an artificial intelligence infrastructure project called Stargate. The total market capitalization of the AI token segment alone has surged 7.6% in the past 24 hours.
Lawsuits against major cryptocurrency firms may be dropped
Trump pardoned Silk Road Market founder Ross Ulbricht. There are rumors that the Trump administration will drop lawsuits against major cryptocurrency companies, including Ripple. Over the past seven days, XRP has gained approximately 10.3%.
$TRUMP and $MELANIA spark excitement
At least two of the Trump family’s memecoins ($TRUMP and $MELANIA) entered the memecoin market hours before Trump’s inauguration. Both caused excitement in the market. While $MELANIA is down 23% in the past 24 hours, $TRUMP is up 3.2%. During this period, the meme coin’s market capitalization increased by more than 3.6%.
All in all, today’s gains in the cryptocurrency market reflect growing confidence in the Trump administration’s pro-crypto agenda, as well as expectations for clearer regulations and reduced legal hurdles. While speculative trades like the $TRUMP memecoin have increased volatility, overall sentiment remains upbeat, pointing to a bullish near-term outlook.
