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

Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500 A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.

Author Suzie

Sep 14, Mon

A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.

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 rebounds to near $4,350 on weaker US Dollar, falling oil prices Gold price (XAU/USD) rises to near $4,345 during the early Asian session on Friday. The precious metal rebounds from a six-week low amid falling oil prices and a weaker US Dollar (USD). Traders continue to assess the latest Federal Reserve (Fed) rate hike and policy cues.

Author FXStreet

23 hours ago

Gold price (XAU/USD) rises to near $4,345 during the early Asian session on Friday. The precious metal rebounds from a six-week low amid falling oil prices and a weaker US Dollar (USD). Traders continue to assess the latest Federal Reserve (Fed) rate hike and policy cues.

US to delay new "overcapacity" tariffs on China — what the pause means for trade, inflation and the dollar Washington is expected to hold off announcing new tariffs over Chinese "overcapacity" until after the 24 September summit, according to Bloomberg. The postponed plan would have added 7.5% to Chinese goods, taking second-term US tariffs to around 20%. Here is what is on the table, and what a deal versus no deal would mean for the yuan, Hong Kong equities and the dollar.

Author Mitrade

17 hours ago

Washington is expected to hold off announcing new tariffs over Chinese "overcapacity" until after the 24 September summit, according to Bloomberg. The postponed plan would have added 7.5% to Chinese goods, taking second-term US tariffs to around 20%. Here is what is on the table, and what a deal versus no deal would mean for the yuan, Hong Kong equities and the dollar.

Popular Symbols