Cryptocurrency surge and dollar strengthening: A fintech expert explains how markets reacted to Trump's victory.

Following Donald Trump's victory in the 2024 U.S. presidential elections, global financial markets reacted with a swift surge, and the cryptocurrency sector experienced significant growth. Elena Sosedka, co-founder of Ukraine's first fintech ecosystem, SopsoGD Fintech Solutions, shared her insights with UNN regarding this influence, particularly on cryptocurrencies, stock markets, and international currencies.

Previously, Elena Sosedka informed UNN that the cryptocurrency platform "Defiant Ones," announced by presidential candidate Donald Trump, could lead to several challenges in regulating the crypto space and also increase volatility in the market. At the same time, it may encourage other countries, including Ukraine, to adopt additional laws governing the cryptocurrency market.

Moreover, the expert highlighted that statements from politicians of Trump's caliber always have a significant impact on the markets, including the cryptocurrency market. Thus, Trump's announcement of a crypto platform could both strengthen trust in cryptocurrencies and raise concerns. Political rhetoric can influence investor behavior and alter public perception of cryptocurrencies, which in turn affects market trends.

Once it became known that Trump won the election, the markets reacted immediately.

Positive Signal for Cryptocurrencies: Record Bitcoin

According to the fintech expert, the future American president's support for the crypto industry fostered optimism in the market, attracting both retail and institutional investors. In particular, many major players began buying Bitcoin, which led to a rise in its value and "pulled up" other cryptocurrencies like Ethereum and Litecoin.

"Thanks to Trump's positive stance on cryptocurrencies, the prices of Bitcoin and other digital assets surged sharply. Immediately after the elections, Bitcoin set a record, climbing to $75,000, while Ethereum and other altcoins also showed impressive growth. These changes can be attributed to Trump's campaign promise to transform the U.S. into a 'Bitcoin superpower' and ease regulatory barriers for cryptocurrencies," noted Elena Sosedka.

Furthermore, in Elena Sosedka's view, the American cryptocurrency market will receive additional support in the future due to the composition of the new Congress. According to the CEO of one of the largest cryptocurrency exchanges, Coinbase, this Congress is the "most pro-crypto in U.S. history." The House of Representatives and the Senate now have 219 pro-crypto candidates, and their numbers are expected to grow.

"This creates new opportunities for establishing a favorable regulatory environment," Elena Sosedka is convinced.

Additionally, she mentioned that investors anticipate that changes in regulatory policy may create favorable conditions for cryptocurrencies. "Investors also expect a shift in cryptocurrency regulation from the SEC to the more lenient Commodity Futures Trading Commission (CFTC). This promise could lead to an influx of new investments into the cryptocurrency market and further growth in its capitalization," concluded the fintech expert.

Stock Market Reaction: Support from Tech Giants and Tesla's Record

Elena Sosedka noted that the U.S. stock market experienced a sharp increase—within a day, stock markets rose by $1.28 trillion. The S&P 500 and Nasdaq indices climbed by 2-3%, with particular attention drawn to Tesla's stock, which added 12% to its value, increasing Elon Musk's net worth by $15 billion.

"This increase is directly related to Musk's support for Donald Trump and investors' expectations regarding future economic policies. The rise in Tesla's shares boosted Musk's personal wealth by $15 billion, bringing his total net worth to nearly $264 billion," explained the fintech expert.

Currency Market Reaction

After it was announced that Donald Trump won the presidential election, the U.S. dollar strengthened against major world currencies in the foreign exchange markets. According to Elena Sosedka, this is due to increased investor confidence in the stability of the U.S. economy and anticipated tax changes.

"This can be explained by investors' confidence in potential economic stability and the new administration's plans, which include tax cuts and support for technology companies," the fintech expert clarified.

At the same time, she pointed out that currencies from countries like Iran weakened. This is due to concerns about possible changes in U.S. foreign policy.

"Donald Trump's victory has already led to significant changes in global financial markets. His support for the cryptocurrency sector has created additional demand for Bitcoin and other digital assets, particularly from institutional investors. At the same time, Trump's victory has strengthened the positions of tech companies like Tesla and led to the dollar's appreciation. The new administration is expected to foster the development of the crypto industry and reduce regulatory barriers, creating positive expectations for financial markets as a whole," summarized Elena Sosedka.