- The global crypto market cap was $3.06 trillion, a 6.63% increase over the last day
- Experts believe the major driver of the current crypto market boom is Donald Trump's presidential electoral victory in the United States
- On November 7th, just two days after the US presidential elections, the Federal Reserve adjusted its benchmark overnight borrowing rate to a target range of 4.50% to 4.75%
The crypto market is witnessing what is now regarded as one of its biggest bull run in a decade. Bitcoin, the world’s largest crypto, is leading the charge, while altcoins follow.
The boom started a little over a week ago and has so far surpassed the expectations of some crypto analysts. At the time of writing, Bitcoin had crossed the $90,000 mark to trade at $93,097, up 7.76% in the past day and 25.12% in the past week. The bitcoin market cap has hit $1.84 trillion, while the 24-hour trading volume was $113.54 billion.
The global crypto market cap was $3.06 trillion, a 6.63% increase over the last day, while the total crypto market volume over the last 24 hours is $283.96 billion.
According to Coinmarketcap data, the total volume in DeFi was $12.21 billion, 4.30% of the total crypto market 24-hour volume. The volume of all stablecoins was $258.7 billion, which was 91.11% of the total crypto market 24-hour volume.
The Fear and Greed Index, which measures investor sentiment, has surged to an exceptionally high score of 86, adding to the euphoria. This is the highest level of extreme greed since March 2024, when the index briefly reached 92, just before Bitcoin's previous record-breaking peak.
What is driving the crypto bull run?
Now, it's critical to ask, what is driving this crypto boom? Was it predicted? Did experts see it coming? Below are three major drivers of the current crypto boom.
1. Donald Trump’s electoral victory and campaign promises
Experts believe the major driver of the current crypto market boom is Donald Trump's presidential electoral victory in the United States. Trump’s reelection and return to the Oval Office will bring a shift to the crypto landscape, not just in the US but across the world.
Trump expressed support for the crypto industry and, particularly, Bitcoin, during his campaign. He raised funds in crypto and attended the Bitcoin Conference 2024, where he met crypto industry experts and promised to make Bitcoin and crypto a fundamental component of his economic agenda.
Trump also pledged to lower regulatory barriers during his campaign, a stance that his Senate Republican allies also shared.
He went so far as to suggest creating a "strategic Bitcoin reserve," which would keep Bitcoin that is seized from illegal activity instead of selling it at auction.
2. The Federal Reserve’s benchmark reduction
On November 7th, just two days after the US presidential elections, the Federal Reserve adjusted its benchmark overnight borrowing rate to a target range of 4.50% to 4.75%, a 25 basis point decrease.
This cut shows a continued shift towards a more cautious approach to managing inflation while aiming to maintain a strong labour market, even though it is less than the half-point reduction in September.
The policy change reflects the Fed's changing perspective as inflation approaches its 2% target, and there are hints of a cooling labour market.
Interestingly, the Fed's most recent statement now states that "risks to achieving its employment and inflation goals are roughly in balance," which is a softer position than the language it used in September, which implied a more pressing focus on inflation control.
Global central bank policy rates. Source: Charlie Bilello
3. Other central banks cut rates too
Apart from the US, other central banks across the globe, especially in Asia and South America, cut interest rates, too.
Countries like Saudi Arabia and Hong Kong followed the Fed's example by lowering their interest rates by 25 basis points each, to 5.00% and 5.25%, respectively. Peru, which has been particularly proactive, recently lowered rates to 5.00% for its eleventh rate cut.
CZ in court again as FTX sues him, Binance for $1.8 billion clawback
Meanwhile, TheRadar earlier reported that Changpeng Zhao, founder and former chief executive officer of crypto exchange Binance, will have another day in court just weeks after he was released from prison.
This is because bankrupt crypto exchange FTX has sued Zhao, popularly known as CZ and Binance, to recover shares valued at $1.8 billion that it claims Sam Bankman-Fried, its jailed former chief executive, improperly repurchased in 2021.
