Bitcoin steadied near recent peaks on Thursday, as Donald Trump’s victory in the 2024 presidential election sparked sharp gains in cryptocurrencies on the prospect of friendlier crypto regulations.

But while Bitcoin’s rally cooled, other major altcoins extended their recent gains, given that they were still trading at a significant discount to their 2021 record highs. 

Trump election sparks Bitcoin rally 

Gains in Bitcoin came as Trump pulled ahead of Kamala Harris in early vote counting, before being declared as the president-elect later on Wednesday. 

Trump had presented a largely pro-crypto stance, promising to introduce friendly regulation if elected, while also potentially giving Bitcoin more credibility as an investment vehicle. 

Bitcoin rose sharply on this notion, crossing record highs last seen in March 2024. Broader cryptocurrency prices also rose, while crypto stocks, such as Coinbase Global Inc (NASDAQ:COIN) and Marathon Digital Holdings Inc (NASDAQ:MARA), clocked strong gains.

Trump’s swift victory also helped clear a major point of uncertainty for markets, sparking a rally across risk-driven assets. U.S. stock indexes rallied to record highs on Wednesday.

But this rally now appeared to be cooling, as focus turned to the conclusion of a Federal Reserve meeting on Wednesday. The central bank is widely expected to cut interest rates by 25 basis points.

The dollar steadied at four-month highs before the Fed meeting, also stifling further gains in risk-driven assets.

Traders were skittish ahead of any signals on future rate cuts from the Fed, especially in the face of a Trump presidency and recent stickiness in inflation.