With confidence after Trump’s election, the cryptocurrency market reaches a record $3 trillion.

The global cryptocurrency market has reached an all-time high of $3 trillion, driven by growing expectations of more favorable regulatory policies following Donald Trump’s recent election as U.S. president. This shift has reignited investor optimism, pushing the market value of digital assets to nearly $3.2 trillion, surpassing the previous peaks seen in 2021 when stimulus measures during the pandemic spurred speculative investments.

Bitcoin, the leading cryptocurrency, was a key contributor to this milestone, with its price climbing to a record high of $93,480 on November 14, according to CoinGecko. As Bitcoin’s price rises, it often triggers gains across the broader crypto market, with capital flowing into alternative cryptocurrencies.

“Typically, when Bitcoin hits a major milestone, altcoins follow suit. With this trend, we can expect the total market capitalization to keep growing,” said Matthew Dibb, Chief Investment Officer at Astronaut Capital.

Optimism about regulation has bolstered investor confidence. Trump’s election, alongside victories for pro-crypto lawmakers in Congress, is seen as a catalyst for reducing regulatory uncertainty, creating a more favorable environment for cryptocurrencies. Since the November 5 election, Bitcoin has risen by 30% to $90,000, Ethereum has gained 33% to reach $3,220, and Dogecoin, frequently endorsed by Elon Musk, has surged by 140%.

Cryptocurrency exchange-traded funds (ETFs) have also seen increased buying activity, likely due to institutional investors seeking indirect exposure to digital assets. Carl Szantyr, founder of Blockstone Capital, stated, “Given the current momentum, a $100,000 Bitcoin by year-end seems achievable.”

The recent surge contrasts sharply with the “crypto winter” of the previous year, when Bitcoin struggled below $20,000 after the collapse of FTX and other major crypto players. However, the $3 trillion valuation still pales in comparison to traditional assets such as gold, valued at $19 trillion, or the S&P 500, with a market cap of $50.6 trillion.

While the overall market has rebounded, some segments are still showing slower recovery. The average sale price of non-fungible tokens (NFTs) has plateaued around $2,700, a modest increase from earlier this year’s $2,000 average, according to NonFungible.com data.

DBS Bank in Singapore, which operates a digital exchange, reported a significant rise in trading volumes since November. Yet, clients remain cautious, preferring to trade well-established assets over engaging with more speculative decentralized exchanges.

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Despite mixed performances across different areas of the crypto ecosystem, there is growing optimism that the increased market capitalization will lead to greater interest in decentralized finance (DeFi) and blockchain applications, according to Danny Chong, co-founder of the DeFi platform Tranchess.