The Daily: Pro-crypto Donald Trump wins US election, bitcoin hits new all-time high above $75,000 and more

Happy Wednesday! In today's Daily, pro-crypto Donald Trump wins the U.S. presidential election, bitcoin hits a new all-time high above $75,000, DeFi tokens surge and more.

Meanwhile, the crypto community reacts to the "greatest comeback story of all time," as Trump becomes just the second president in U.S. history to win another non-consecutive term in office after Grover Cleveland in 1892.

Let's get started.

Pro-crypto Donald Trump defeats Kamala Harris in US presidential election

Republican Donald Trump has won the U.S. presidential election, defeating his Democrat rival Kamala Harris, according to major media outlets, with four results still to come.

• The Associated Press called the presidential race at 5:36 a.m. ET on Wednesday, earlier than anticipated, after Donald Trump's win in the swing state of Wisconsin put him over the 270 electoral votes threshold to become the 47th president of the United States.
• Meanwhile, decentralized predictions platform Polymarket resolved its $3.7 billion presidential election market after AP, Fox and NBC all called the result for Trump, meeting the rules for traders' bets.
• Polymarket also projects a 95% chance of a Republican sweep of the presidency, House and Senate, with Trump also winning the popular vote, to the surprise of many.
• The Republican candidate earlier declared a "magnificent victory" in a triumphant speech to supporters at his official watch party in Florida.
• The crypto industry became a major election issue this year for the first time, with significant funding from super PACs and crypto executives backing both candidates.
• Trump's newfound pro-crypto stance led to campaign pledges to end what he calls an "unlawful crackdown" on the industry in the U.S.
• The president-elect also promised to dismiss SEC Chair Gary Gensler and commute Silk Road founder Ross Ulbricht's life sentence "on day one."
• Harris' approach was more vague, emphasizing she would encourage innovative technologies like digital assets and develop a regulatory framework to protect crypto users.
• Gensler, facing likely removal by Trump, may remain at the SEC as a commissioner, though sources suggest he might step down entirely.

Bitcoin hits new all-time high above $75,000 amid US election results

Bitcoin reached a new all-time high above $75,000 as Donald Trump's early lead in the 2024 U.S. presidential race became clear, gaining nearly 10% within 24 hours to reach the milestone.

• Bitcoin previously broke above its November 2021 all-time high of $69,000 on March 5, subsequently breaching the $73,000 level on March 13.
• However, until Election Day, bitcoin has remained rangebound between $50,000 and $70,000 for the better part of seven months.
• Substantial net inflows into the new spot bitcoin ETFs in the U.S., now totaling $23.5 billion, are thought to have significantly contributed to bitcoin's more than 75% year-to-date gain.
• The halving event on April 20 is another narrative behind its price rise in 2024, cutting daily bitcoin issuance in half. While not a direct cause-and-effect relationship, these events have often preceded substantial bull runs in the bitcoin market.

Aave, Uniswap and other DeFi tokens surge after Trump victory

DeFi tokens also surged after Donald Trump's U.S. presidential victory, with Aave gaining over 26% and Uniswap rising 30%.

• Aave's rally may be partially fueled by its partnership with the Trump-linked World Liberty Financial DeFi project, which plans to launch an Aave v3 instance allowing users to borrow or lend ETH, WBTC and stablecoins.
• Uniswap's rise may reflect potential crypto regularity clarity under the Trump administration after the SEC recently issued a Wells Notice against the decentralized exchange project, indicating possible enforcement action.
• Several other major DeFi projects also posted double-digit gains, with the total cryptocurrency market capitalization now standing at more than $2.5 trillion.

No Trump bump for World Liberty Financial token sales following presidential win

Despite the DeFi market's broader rally, there was no such Trump bump for World Liberty Financial's lackluster token sales, with fewer than 100,000 WLFI — less than $1,500 — sold in the past 24 hours.

• Since its launch on Oct. 15, the Trump-backed token has generated just $14.8 million in total sales, with the initial $300 million target drastically reduced to a $30 million goal.
• The WLFI token generated $10 million in first-day sales but has struggled since, partly due to U.S. restrictions limiting retail investor participation.
• Critics, including Two Prime CEO Alexander Blume, argue that WLFI lacks unique features and primarily relies on the Trump brand, which hasn't been enough to attract the broader crypto community.

Crypto's regulatory headwind becomes a tailwind under Trump

Analysts at Bernstein said that Donald Trump's victory has shifted crypto's regulatory environment from a headwind to a tailwind, with expectations of a more crypto-friendly SEC and Senate Banking Committee.

• They predict faster progress on crypto legislation, especially around stablecoin and market structure bills, benefiting U.S. exchanges and stablecoin issuers like Circle and Paxos.
• The analysts also reiterated their bitcoin price target of $90,000 by year-end and a bull cycle peak of $200,000 in 2025, viewing any post-election "sell the news" dip as a buying opportunity.

In the next 24 hours

• The Bank of England's latest interest rate decision is due at 7 a.m. ET on Thursday, followed by the U.S. Federal Reserve's decision at 2 p.m., with a 25 basis point cut to 4.75% anticipated for both.
• Bank of England Governor Andrew Bailey will speak at 9:15 a.m., followed by the U.S. FOMC press conference at 2:30 p.m.
• Money Expo Qatar concludes in Doha.

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