Crypto Euphoria as Trump Wins — But Will It Last?

November 5, 2024 will likely go down as one of the most consequential days in crypto history.

Donald Trump — a pro-Bitcoin candidate — clinching the presidency with a resounding win, despite polls suggesting it was a neck-and-neck race.

The Republicans wrestling back control of the Senate, with hundreds of crypto-friendly politicians elected to Congress.

Millions of Americans who invest in digital assets, and believe in their potential, feeling their voices are finally being heard.

BTC surged as it became clear that Trump was making an extraordinary political comeback, and would retake the Oval Office in January.

But once the champagne's been drunk and the euphoria wears off, a bigger question remains: what exactly does this mean for crypto?

A long line of deep-pocketed donors will be expecting big things in his second term, but Trump 2.0 has an equally long list of campaign promises to deliver on.

Radical policies on trade, immigration and taxation have been proposed that may take priority — with economic ramifications that could ultimately derail Bitcoin's performance in the years to come.

Trump may find it difficult to follow through on his quest to fire SEC chair Gary Gensler on his first day in office.

That being said, a natural successor within the commission could be Hester Peirce, who's affectionately known as "Crypto Mom" owing to her forward-looking outlook in the space.

Challenges too can be found in his vision of ensuring that all remaining BTC are mined on American shores.

While the U.S. is a market leader in this still-nascent industry, aggressive competition from other nations may mean this is a tall order.

The crypto industry suited up for this election — and focused their energy on supporting candidates with a track record of embracing digital assets, especially those taking on the sector's vocal critics.

High-profile scalps included Ohio Senator Sherrod Brown, yet fierce opponents remain in the form of Elizabeth Warren and others.

It's also interesting to note which altcoins have enjoyed a breakout over the past 24 hours.

Solana — which has had a turbulent couple of years because of multiple outages and close ties to Sam Bankman-Fried — has leapt by 12.4% over the past 24 hours.

Reading between the lines, this surge can be linked to renewed optimism that an exchange-traded fund based on SOL's spot price could finally be approved once the SEC is under new management.

Dogecoin also witnessed double-digit gains, and that's perhaps a nod to Elon Musk's indelible role in returning Trump to power.

What's more, there are some uncomfortable conflicts of interest that will start to emerge between now and January.

In the run-up to election day, Trump and his sons were aggressively plugging a new crypto venture called World Liberty Financial, which hasn't been all that well received within the industry.

Careful scrutiny will be paid to whether the president-elect's efforts to create a friendlier climate for digital assets end up benefiting him financially.

Tuesday night's result was decisive — and Donald Trump has been handed a clear mandate to lead the U.S. for the next few years.

But the long-term prospects of the economy, and the crypto markets, remain too close to call.