Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Why Altcoins Were Blasting Higher on Wednesday

Source The Motley Fool

Hump Day was clearly not presenting much of a hump for a great many cryptocurrencies, no matter how lightly capitalized or obscure. The market was, of course, trading largely on the news of Donald Trump's return to the presidency. More than a few crypto-heads believe he'll be the top advocate for their beloved asset class.

It wasn't hard to find crypto winners on Wednesday, with many running high on double-digit gains. As a group, altcoins and tokens were very much part of the rally -- Cardano (CRYPTO: ADA) was ahead by almost 7%, Bitcoin Cash (CRYPTO: BCH) was enjoying a nearly 9% lift, and Aptos (CRYPTO: APT) and Chainlink (CRYPTO: LINK) were both in the double-digit club with slightly over 10% rises as of 4 p.m. ET.

Cryptos "trumped" other asset classes

During his campaign to return to the White House, Trump tended to be vague about his specific policies. One pledge he did make was that he would turn the U.S. into "the crypto capital of the planet," although he was hardly specific about what this would entail. He also made promises about establishing a national "strategic reserve" of the leading digital currency, Bitcoin (CRYPTO: BTC).

Running mate and vice president-elect J.D. Vance is much more identified with cryptocurrency, and perhaps the key reason why the Republican ticket enjoyed far more support from the cryptoverse than their opponents. To his credit, Vance has put his money where his mouth is, holding between $250,000 to $500,000 in Bitcoin, according to a federal disclosure form submitted earlier this year.

This is why the Trump victory lit a fuse under Bitcoin's price. In fact, on Wednesday, it soared to new all-time highs in its more than 15 years of existence, at one point hitting $76,500. And if Bitcoin is traveling well higher, you can be sure that most altcoins will be coming along for the ride. So at the end of the day, we can characterize this as a Trump-and-Bitcoin-led surge.

Not to spoil the party, but...

The euphoria was entirely understandable, but it also sends up a yellow warning flag. Euphoric reactions with volatile assets like cryptos have a way of boomeranging back sharply, so we might be in for a correction before long. We should also bear firmly in mind that neither Trump nor Vance has outlined specific measures to enhance the value of Bitcoin and its ilk, and the real market-moving factors will be in the details.

That being said, the macroeconomic environment looks quite healthy for digital coins and tokens just now. So I wouldn't be surprised to see a few more days of broad gains.

Should you invest $1,000 in Cardano right now?

Before you buy stock in Cardano, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cardano wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $857,383!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of November 4, 2024

Eric Volkman has positions in Bitcoin. The Motley Fool has positions in and recommends Aptos, Bitcoin, Cardano, and Chainlink. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Bitcoin falls below $75,000 as the CLARITY Act fails in the Senate — what the vote means for crypto The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Author Suzie

Sep 16, Wed

The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks in The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Author Irene Q.

Sep 17, Thu

The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Gold ends three-week slide at the $4,400 line — eight straight days of ETF inflows vs a 5% 10-year and a 100 dollar Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.

Author Suzie

Sep 20, Sun

Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.

Bitcoin rallies near $86K on improving markets ahead of quarterly options expiry Bitcoin (BTC) market conditions improved over the past week as spot buying pressure strengthened and derivatives positioning increased, pushing the top crypto near $86,000.

Author FXStreet

Yesterday 01: 16

Bitcoin (BTC) market conditions improved over the past week as spot buying pressure strengthened and derivatives positioning increased, pushing the top crypto near $86,000.

Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonight The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Author Suzie

21 hours ago

The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Popular Symbols