Bitcoin and Ethereum Surge Post-2024 US Election Impact: Market Dynamics and Global Reactions

Bitcoin’s Remarkable Surge

The cryptocurrency market has seen immense movements recently, with Bitcoin leading a path of notable growth. Following the surprising victory of Donald Trump in the US presidential election held on November 5, 2024, Bitcoin has surged impressively by over 30%. The market appears to be influenced by anticipations of favorable crypto policies under Trump’s administration, which has fueled optimism among investors worldwide.

However, this bullish momentum faced a temporary setback as Bitcoin’s price, having briefly surpassed the $90,000 mark, retreated back to under $87,000. This decline is attributed to a broader selloff across global equity markets, showcasing the volatile nature of the currency. Analysts continue to observe these fluctuations closely, with predictions that Bitcoin may reach six-figure levels before the year’s end due to the pro-crypto stance from the new administration.

Ethereum and Other Cryptocurrencies

While Bitcoin captures significant attention, Ethereum has also been on a positive trajectory, with price increases of over 43% in the past week and 38.65% in the past month. Currently trading in a range between $2,612.24 and $3,505.09, Ethereum reflects a bullish trend that many investors find encouraging. The rapid appreciation has, however, driven Ethereum’s Relative Strength Index (RSI) into overbought territory, suggesting a cautionary note for potential pullbacks.

Other digital currencies such as Dogecoin, Cardano, and Shiba Inu are experiencing remarkable gains. Dogecoin, specifically, surged by 20% following Trump’s announcement to form the Department of Government Efficiency, which is speculated to streamline processes potentially beneficial for the crypto market.

Insights on Taxation and Market Dynamics

Amidst these developments, the Indian cryptocurrency market faces its challenges, notably concerning taxation. In India, cryptocurrencies are taxed at a flat rate of 30% on gains derived from Virtual Digital Assets (VDAs). This taxation policy is strict, with no exemptions based on the investor’s income tax slab rate, and doesn’t distinguish between short-term and long-term holdings.

Furthermore, a 1% Tax Deducted at Source (TDS) is applied to transfers surpassing certain thresholds. With these taxing measures, investors are encouraged to factor in the implications when drawing their trading strategies. The landscape of cryptocurrency remains dynamic, subject to policy shifts on a broader scale across various jurisdictions. As the year progresses, market participants are keenly watching regulatory frameworks alongside market indicators to navigate this volatile yet promising terrain.