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Trump trade: Bitcoin hit record highs and Tesla hits $1 trillion market cap
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Navigating the surge in the crypto market

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Moomoo Learn joined discussion · Oct 31 10:58
The U.S. elections are heating up! With only a few days left until Election Day (November 5 local time), Trump and Harris are fiercely competing for votes. Meanwhile, Bitcoin has surpassed $71,000, leading to a general rise in crypto-related stocks. The U.S. elections could become a key catalyst for the crypto market.
Source: moomoo. Data as of October 29, 2024.
Source: moomoo. Data as of October 29, 2024.
Why are cryptos increasingly recognised as an asset class?
The investment value of crypto lies in its gradual incorporation into institutional asset allocations, becoming part of diversified investment portfolios. As more institutional investors pay attention to Bitcoin and other crypto assets, the market's liquidity and stability are also improving. Additionally, crypto is seen as a potential tool for hedging against inflation and currency devaluation, further enhancing its appeal as a long-term investment. Overall, crypto is increasingly being recognized as an emerging digital asset, demonstrating considerable investment potential.
Five factors affecting crypto
Recently, the crypto market has been primarily influenced by the following factors:
I. Upcoming Elections
Regardless of the election outcome, policy changes in the U.S. often create new market adaptation opportunities. On one hand, more lenient policies may encourage technological innovation and capital inflow into the crypto market; on the other hand, stricter regulations may prompt the industry to self-purify, enhancing transparency and security. Both scenarios could strengthen the long-term value of crypto and boost market confidence.
Navigating the surge in the crypto market
II. Appetite for Risk Assets
In the current global economic environment, investors' demand for risk assets is increasing, leading to a shift of funds from traditional markets to emerging assets, such as crypto. Regardless of who takes office, this trend is likely to continue, as cryptocurrencies offer different risk and return characteristics from traditional financial assets, helping to diversify investment portfolios.
III. Potential Rate Cut Expectations
Expectations of interest rate cuts could affect the value of fiat currencies, increasing the appeal of cryptocurrencies like Bitcoin, which are often seen as hedges against inflation and currency devaluation.
IV. Bitcoin Halving
In April of this year, a Bitcoin halving took place, and we are currently at a critical moment. Based on previous halving cycles, the price may begin to rise after a prolonged period of consolidation. Will history repeat itself? Let's wait and see!
V. Investor Behavior
According to the ETF head at BlackRock, 75% of Bitcoin buyers are newcomers to Wall Street who are fans of crypto. This indicates that the crypto market is attracting a new group of investors, and these new market entrants may influence market dynamics and price trends.
Navigating the surge in the crypto market
How to invest in crypto
There are three ways to invest in crypto: directly investing in crypto, investing in stocks related to crypto, and investing in crypto-related ETFs.
Crypto
The first way is to directly invest in crypto.
For investors, directly investing in cryptocurrencies is a viable option. Investors can purchase established cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) through cryptocurrency exchanges, which typically have larger market capitalization and lower volatility. After the purchase, investors may choose to store their assets in a crypto wallet for management and trading purposes.
Navigating the surge in the crypto market
Crypto-related stocks
The second way is to invest in crypto-related stocks. These stocks can benefit from overall industry growth, rather than relying solely on individual cryptocurrencies. Even if specific cryptocurrencies perform poorly, related stocks may still rise due to industry trends, providing a leverage effect. This approach offers lower volatility and more controllable risk, allowing investors to profit from crypto growth while seeking a more stable investment path.
On moomoo, you can find them by navigating to Markets > US/Others > Investment Themes > Crypto.
Navigating the surge in the crypto market
Crypto-Related ETFs
Investing in crypto-related ETFs involves relatively lower risks than owning individual cryptocurrencies and is more convenient for investors to gain exposure to crypto.
Based on the assets they hold, the crypto ETFs available in the market can be divided into three categories: spot crypto ETFs, crypto futures ETFs, and crypto-related stock ETFs. What are the differences among them?
Navigating the surge in the crypto market
Moomoo also provides trading access to various crypto-related ETFs. Follow these steps to find them:
1. Open moomoo.
2. Type "Crypto" into the search bar, then tap "More".
3. View the list of different types of ETFs.
4. You can sort the list by price changes, trading volume, transaction amounts, market cap, and other conditions.
Navigating the surge in the crypto market
Summary
As the U.S. elections approach and Bitcoin prices break through, the cryptocurrency market is experiencing a new wave of investment enthusiasm.
Investors can participate in the market by directly purchasing cryptocurrencies, investing in related stocks, or choosing crypto-related ETFs, each with its unique advantages and risk considerations.
Regardless of the election outcome, cryptocurrencies, as an emerging asset class, are gradually becoming an important part of investment portfolios.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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