Bitcoin has been rallying since Trump’s victory, with the token hitting $75,000 on election night when it was clear that the Republican was on his way to victory. On Tuesday, Nov. 12, bitcoin reached an all-time high in value of $89,998 before stabilizing, with this recent surge attributed to Arizona and Nevada calling their elections for Trump.
“Trump has already declared his love of the digital currency and crypto traders now have a new narrative by which to get even more excited about where the price could go,” said Mould.
The president-elect has previously expressed his desire to keep the cryptocurrency industry free from government intervention, including from the introduction of a feared central bank digital currency like the digital dollar. At one point he even expressed his desire to turn the U.S. into “the crypto capital of the planet.”
“If crypto is going to define the future, I want it to be mined, minted and made in the U.S.A.,” said Trump during the campaign trail.
A second Trump administration is expected to have more crypto products, including ETFs (exchange-traded funds), entering mainstream financial markets. The U.S. only has 11 crypto ETFs, and Trump’s presidency is expected to multiply this number.
Bitcoin could hit $100,000 mark by year’s end
Bitcoin’s value has surged by over 40 percent in the one month starting on Oct. 13. Analysts also note that profit-taking – the process by which investors sell their assets when its value increases – is only about half as intense as during previous all-time high cycles, suggesting that many investors are expecting the value of bitcoin to keep increasing.
“While profit-taking is substantial, it remains below historical peaks, suggesting additional room for further gains before reaching potential demand exhaustion,” noted Glassnode, a financial consulting and cryptocurrency analysis firm, in a Nov. 12 market report. “We’ve observed $20.4 billion in realized profits since entering this latest all-time high discovery phase.”
Geoff Kendrick, global head of digital assets research at the London-based financial services company Standard Chartered, predicts that bitcoin will keep increasing in value and a $100,000 valuation is “easily achievable” by Dec. 27, when certain bitcoin options expire.
“$125,000, which I forecast for the end of the year, is the next level, although I note [that] following the 2016 election a lot of Trump trades peaked around the time of the Jan. 20 inauguration,” wrote Kendrick in an email. “So if bitcoin can’t reach $125,000 by Dec. 31, I think it will by Jan. 20.”
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