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The recent US elections have sent shock-waves through the global cryptocurrency markets, and Africa is no exception. With the election of Donald Trump as President, the crypto market has experienced a significant surge, bringing with it excitement and anticipation across the continent.
Cryptocurrency markets across the globe have experienced significant movements following Donald Trump’s victory in the United States presidential election this past November. The U.S. presidential election is seldom without global economic implications, and the recent election’s impact on the burgeoning cryptocurrency markets in Africa is particularly noteworthy. Here’s an exploration of how this political shift has begun to shape crypto use and markets in African nations over the past month.
A Surge In Crypto Value
The cryptocurrency market reacted positively following Trump’s victory, as predicted in our previous article “Countdown to the US Elections: What Could It Mean for Crypto in Africa?”, with Bitcoin and other digital assets seeing a notable increase in value post-election. This surge has been particularly exciting for African crypto enthusiasts, who have been quick to capitalise on the rising market, seeing huge gains in their crypto holdings.
Market Reactions Post-Election
General Sentiment and Bitcoin’s Performance
Bitcoin, often seen as a barometer for crypto market sentiment, hit new all-time highs (ATHs) post-election, blasting through its previous ATH and rapidly surpassing $75,000. This surge was attributed to Trump’s pro-crypto stance, which he reiterated during his campaign, promising to make America the “crypto capital of the planet”. This optimism has echoed around the world, trickling down into African markets, where Bitcoin is viewed not only as an investment vehicle but also as a hedge against inflation and currency devaluation, prevalent issues in many African economies. Besides Bitcoin, several other altcoins are also very popular in African counties for day-to-day transactions and these have likewise seen gains across the board as global and local interest surges.
Increased Institutional Interest
There has been a noticeable increase in interest from institutional investors in African crypto markets. Trump’s victory has been interpreted by many as a signal for a more favourable regulatory environment for cryptocurrencies, which has encouraged foreign investment into regions with less stringent crypto regulations like Africa. This has led to a boost in trading volumes and interest in crypto assets across the continent.
Nigeria Leading the Charge
Regulatory Shift
It is a general sentiment in many African nations that the promise of a crypto-friendly U.S. administration might encourage more local investments into digital assets, and this has proved to be the case in Nigeria. Since the election there have been movements towards formalising the legal status of cryptocurrencies, with the Nigerian Senate introducing of a bill on November 21st, aimed at regulating visual assets and cryptocurrencies, signalling an official recognition of the sector’s potential.
Nigeria, already a leading hub for crypto adoption in Africa, has experienced heightened activity since the election, with the outcome adding to the speculation and trading frenzy. Nigerian investors, both retail and institutional, have been keen to capitalise on the global crypto rally. The promise of U.S. policy changes has created a speculative boom, with many Nigerians viewing cryptocurrencies as a safer alternative to the naira, especially given the currency’s historical context of economic instability.
Global Leaders In Adoption
Undeterred by a pervasively negative cryptocurrency environment, Nigerians have continued to leverage digital currencies for business payments and inflation hedging, and remain a top-ranking world leader in adoption. According to a 2024 report by Chainalysis, Nigeria received approximately $59 billion in cryptocurrency value between July 2023 and June 2024, making it the global 2nd in adoption, and the only African nation in the global top 20 ranking this year.
Four other African countries made the global top 30: Ethiopia (26), Morocco (27), Kenya (28) and South Africa (30).
Kenya & Morocco on the Rise
Kenya
Trump’s victory has been viewed positively by Kenyan crypto enthusiasts and investors who anticipate that a more crypto-friendly U.S. might encourage similar regulatory adjustments in Kenya. One of the leading countries in Africa for cryptocurrency adoption, despite unclear regulatory stance from the authorities. While there hasn’t been an immediate policy shift, the global trend could pressure Kenyan regulators to define clearer guidelines for cryptocurrencies.
The Kenyan media and public discourse have reflected a keen awareness of Trump’s stance on cryptocurrencies, often discussing how this might signal a more favourable environment for crypto globally, and for local markets.
There has also been a noted increase in trading volumes on Kenyan crypto exchanges post-election, which can be attributed to both local enthusiasm for crypto and the global market’s positive response to Trump’s pro-crypto rhetoric.
Morocco
The North-African nation has seen an enormous regulatory shift since the US election, with an official move towards legalising cryptocurrencies announced in late November, shortly after Trump’s election win. The governor of Morocco’s central bank has confirmed that the country is preparing legislation to regulate digital assets, signalling a shift from the previous ban that was established in the country in 2017. It is likely this decision was influenced by the global trend towards crypto acceptance and, given the timing, more than likely also influenced by Trump’s pro-crypto stance, which has been seen as a signal for a more crypto-friendly regulatory environment worldwide.
The news of legalisation has led to a bullish sentiment in Morocco’s crypto community, which aligns with the broader market’s response to Trump’s victory.
Morocco’s intention to adopt a more structured approach to cryptocurrencies, aiming to regulate instead of outright banning them, as part of aligning with global trends in cryptocurrency regulation. Since Trump’s election win, Morocco’s crypto markets have been on an upward trajectory, supported by regulatory changes and global market sentiment. However, the full impact of these changes will unfold as the regulatory details are clarified and as the market adjusts to the new legal landscape.
Uncertainty in South Africa
South Africa, with its established crypto licensing regime, has seen a mixed response. While the market initially reacted positively to Trump’s win, the broader economic implications of his policies (especially regarding global trade) have introduced some volatility. The rand experienced volatility due to what was known as the “Trump Trade”, while South African crypto exchanges like Luno and VALR reported spikes in trading volumes, due to local investors wanting to capitalise on the global crypto boom. This in turn increased interest from institutional investors looking at emerging markets like South Africa.
There is anticipation among the crypto community that Trump’s policies might encourage more foreign investment into cryptocurrencies, benefiting markets like South Africa that have a clear regulatory stance, bringing increased liquidity and possibly more crypto-based fintech innovations.
Post-Election Impact: A Cautious Optimism
Since the US elections, there has been a noticeable uptick in interest and activity in the African crypto markets. Search hits for crypto-related topics have surged, along with an explosion of forum discussions and social media interest, reflecting growing curiosity and engagement among African internet users. This increase is not just limited to individual investors, but also includes businesses and governments exploring the potential of digital currencies.
Many African countries are currently navigating regulatory challenges and beginning to embrace digital currencies, and the crypto-positive outcome of the US elections has given the market a boost in terms of people taking an interest in digital currencies, as the continent is poised to become a significant player in the global crypto economy.
The surge in crypto value following the US elections has only accelerated the trend in adoption, highlighting the potential for cryptocurrencies to drive financial inclusion and economic growth across Africa.
However, despite the optimism, there is also a strong undercurrent of caution. The exact implications of Trump’s policies on international crypto regulation remain speculative. African nations, while keen to leverage crypto for economic growth, are cautious about the regulatory shifts that might follow from the U.S., potentially impacting their own regulatory frameworks.
The immediate aftermath of the election also caused increased volatility in crypto prices. While this volatility can attract traders looking for short-term gains, it also poses risks for those who are less experienced, particularly in regions where crypto literacy might still be developing. This makes it a perilous time for newcomers to the market, who can easily get caught out and make mistakes that can be very costly – which is ultimately a bad thing for the market and trust in digital currencies.
Post 2024 Election: Marking A Change In Digital Market Confidence?
Trump’s policy promises are having a domino effect across global crypto markets, and the 2024 U.S. election impact on African cryptocurrency markets has been palpable. The pro-crypto rhetoric from Trump has generally been perceived as beneficial, leading to a surge in market activity and speculative investments. His commitment to making the U.S. a “crypto capital” has been interpreted as a green light for countries across Africa to explore or expand their crypto landscapes, expecting a more positive approach from the U.S. regarding digital assets. Several African nations look poised to position themselves firmly within the global crypto economy, seeing the potential of adopting a pro-crypto approach to attract blockchain technology investments, foment digital startups and create thriving innovation hubs.
However, the long-term effects will largely depend on how these policies materialise into regulatory changes and how African governments respond to these shifts. As of now, there’s a cautious optimism in the air, with stakeholders in Africa’s crypto scene watching closely as the U.S. navigates its new political landscape. The African crypto community continues to keenly observe policy moves and economic announcements from the Trump administration that could further influence this dynamic market landscape.
As the world watches the unfolding crypto revolution, Africa stands at the forefront, ready to harness the power of digital currencies for a brighter financial future.
We hope you found this article informative, please consider sharing it on social media using the buttons above so others can hear about these exciting developments in the African cryptocurrency sphere. Stay up-to-date with the latest analysis and insights into African crypto space, sign up for our newsletter and follow us on social media – the ACCN Team.
