7 November 2024
Following Donald Trump’s victory in the US presidential election against Vice President Kamala Harris, optimism is surging in the cryptocurrency market. Analysts are now projecting that Bitcoin could reach new heights of $100,000 before the presidential inauguration, which is just over two months away.
Trump’s Election Signals Shift Toward Pro-Crypto Policies
With Trump’s administration firmly established, CNBC reports that Bitcoin has already reached an all-time high of $75,500, signaling a potential shift towards a more crypto-friendly regulatory environment starting in 2025.
The combination of Republican control of both the Senate and the White House is expected to bolster support for Trump’s pro-crypto initiatives, leading to further price discovery for the market’s biggest digital asset.
Trump has made several key promises that could significantly impact the cryptocurrency landscape. One of the most notable is the establishment of a national Bitcoin stockpile, positioning the US as the “crypto capital of the world.” He has also committed to ensuring that all future Bitcoin mined in the country contributes to this national reserve.
Moreover, Trump has vowed to fire Gary Gensler, the current chair of the US Securities and Exchange Commission (SEC), who has faced criticism for his aggressive regulatory approach under the Biden administration.
Gensler’s tenure has seen numerous lawsuits targeting major players in the crypto space, including Binance, Coinbase, and Ripple Labs, resulting in nearly half a billion dollars in legal fees for those companies.
Trump’s proposed crypto policy is designed to stimulate growth and adoption within the United States, with Bitcoin positioned as a central element in his strategy to tackle the national debt, which currently stands at $36 trillion.
His administration’s plans have been echoed by pro-crypto Senator Cynthia Lummis, who introduced legislation to designate Bitcoin as a national reserve asset. This initiative was discussed during her remarks at the 2024 National Bitcoin Conference in Nashville, where Trump also made a notable appearance, further solidifying his commitment to the sector.
Bitcoin On Track For $100,000
Given these developments, CNBC notes that “multiple analysts” are forecasting Bitcoin could reach the $100,000 mark before Trump’s inauguration, especially if he follows through with his promise to create a national Bitcoin stockpile.
The US government already possesses over $15 billion in Bitcoin from asset seizures over the years, providing a solid foundation for this initiative.
In addition to Bitcoin’s rally, stocks of US-based firms such as Coinbase and Robinhood have seen significant gains in recent days. Coinbase (COIN) shares surged by 25.73%, while Robinhood (HOOD) jumped nearly 18%, reflecting the industry’s renewed confidence in a more favorable regulatory environment under Trump.
Research from Cooper Research aligns with these optimistic projections, particularly regarding the Bitcoin exchange-traded fund (ETF) market. The firm previously estimated that ETFs could manage nearly 1 million Bitcoins by the time of the election, and currently hold approximately 986,000 BTC.
Their analysis suggests that if trends continue, Bitcoin could indeed reach $100,000 by January 20, when Trump is set to be inaugurated, especially if ETFs increase their holdings to around 1.1 million BTC.
At the time of writing, BTC is trading at $74,750, having retreated from its current record high of $75,500 set during Wednesday’s trading session.
Featured image from DALL-E, chart from TradingView.com