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Altcoins followed suit: Ethereum climbed 9.1% to $2,633, Solana spiked 13% to $187, and Dogecoin—a popular meme token promoted by Trump ally Elon Musk—surged 18% to just under 20 cents.

Both candidates have shown support for crypto this election cycle.

Trump’s new policy had a more pronounced effect on the market. Earlier this year, he pledged to establish a Bitcoin strategic reserve and replace SEC Chair Gary Gensler, known for his critical stance on crypto.

Recently Vice President Harris described blockchain as an “industry of the future” and pledged to support digital currencies.

Tesla’s Gains on Anticipated Policy Benefits

Trump’s pro-business policies seem to have revived investor enthusiasm for Tesla.

Trump has hinted that he may consider a government role for Elon Musk, aligning Musk’s aspirations for reduced government spending with Trump’s broader economic goals.

The idea of tech billionaire Musk potentially leading a commission to enhance government efficiency has stirred interest among investors. They see potential gains for Tesla and Musk’s wider business interests under a Trump administration.

Republican Majorities Spur Market Optimism

With significant Republican wins of seats in both the Senate and House, Trump now wields significant power to push through tax cuts and enforce tariffs on imports.

These policies have buoyed the dollar, with traders expecting that fiscal stimulus could further enhance economic growth.

When the New York market opened on Wednesday, the S&P 500 rose by 2.1%, the Dow Jones by 3.1%, and the Nasdaq composite by 2.1%, setting new records across the board.

Crypto Trump Trades

“That’s the Trump trade,” Marta Norton, chief investment strategist at Empower Investments, told CNBC, capturing the general sentiment among investors.

Financial analysts have also projected that Trump’s victory could see crypto values climb further, potentially pushing Bitcoin above $80,000 in the coming months.

“There’s a lot of emotion, there’s a lot of euphoria, based on perspective in markets today,” one expert noted. “But that doesn’t necessarily mean that’s the way markets are going to trade in perpetuity.”

While the markets adjust to Trump’s return, investors appear emboldened by his pro-business stance, positioning for potential gains in various sectors from crypto to big tech.