Hassan Maishera
DWF Labs has published a report on the state of the cryptocurrency market following Donald Trump’s victory in the polls earlier this week. The report looked at Bitcoin’s performance, the current state of stablecoins, and the DeFi ecosystem.
Bitcoin Trend Analysis Could See Price Soar Higher
According to the DWF Labs report, since the introduction of the ETFs, BTC has carried its strong upward momentum. Exponential Moving Average (EMA) values across the board have been in an upward trend.
Short-term momentum (EMA 13 and 25) showed a consistent positive spread from August to November, leading up to the elections. The mid-term trend (EMA 50) also acted as support during pullbacks, and the price has maintained above the EMA 50 since September.
DWF Labs added that BTC’s price action indicates the market is in an environment that has a high probability of continuation, with the short-term, medium-term, and long-term trends stacked bullishly and paired together with a healthy market structure.
The report highlighted that the recent rally occurred with the return of a Coinbase premium. A Coinbase premium represents that BTC’s spot price on Coinbase is higher than Binance’s spot price) This acts as an indication of a renewed interest and flow from institutions.
According to DWF Labs, the absence of a Coinbase premium has also led to retracements. With this observation, it is ideal to say that sustained Coinbase premiums often precede trend-driven moves, while Binance premiums typically indicate broader market participation.
Trump’s Win Could Spark Broader Regulatory Acceptance for DeFi and Stablecoins
According to the report, Trump’s win has sparked a possibility of “de-regulation” concerning crypto-related activities. The sectorial outperformance of DeFi (post-election) may be in anticipation of broader regulatory acceptance, boosted by the fact that Trump himself has ventured into his own stablecoin, World Liberty Finance.
Growth patterns in both Stablecoins and DeFi show that adoption levels are picking up. Adding this to a forward-looking analysis—continued growth in USDT and USDC adoption, which results in an increase in overall liquidity in crypto—will solidify the thesis that regulatory pressure on Crypto participation shifts to looser policies following Trump’s win.
Despite the growth recorded by DeFi tokens and stablecoins, meme coins lead the way in terms of returns. DWF Labs attributed this to the retail preference for attention-based assets. On the other hand, reduced volatility in other sectors might point to sector maturation.
This year, the crypto market demonstrated significant maturation with distinct sector performance patterns and clearer institutional versus retail behavior. Bitcoin's strong performance was accompanied by robust growth across multiple sectors, with meme tokens showing particular strength. The market structure suggests continued institutionalization while maintaining significant retail participation opportunities.
