Bitcoin soared as Donald Trump claimed victory in the US presidential election, setting up a “perfect storm” for the price of bitcoin in the coming weeks.
The price of bitcoin broke its previous all-time high, surpassing $75,000 per bitcoin, while other major cryptocurrencies also soared. led by the meme-based dogecoin which is a favorite of Tesla billionaire Elon Musk as speculation mounts over his plans to avoid a “financial emergency”.
NOW, as traders look to Federal Reserve interest rate decision this weekBullish Bitcoin traders and analysts are betting that the price of Bitcoin could reach $100,000 by the new year.
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Tesla billionaire Elon Musk campaigned for Donald Trump last month, along with several of his … (+)
“Bitcoin is the only asset that would still rise if Trump returned to the White House,” Russ Mould, chief investment officer at AJ Bell, said in emailed comments.
“A brief jump to $75,281 put the cryptocurrency at a new all-time high and prompted traders to speculate when, not if, it would surpass $100,000. Trump has previously declared his love for the digital currency and “Crypto traders now have a new narrative that will allow us to be even more excited about where the price could go.”
“Bitcoin could reach $100,000 by December or January,” Markus Thielen, managing director of 10x Research, said in an emailed note.
The rise in Bitcoin prices ahead of the election comes after Wall Street giants, led by the world’s largest asset manager Blackrock, hoovered up huge volumes of Bitcoin for their new exchange-traded funds (ETF) spot Bitcoin.
“We tested the ETF accumulation trend against potential price ranges, suggesting that a $100,000 bitcoin is entirely possible by the time the 47th US President heads to Capitol Hill for his inauguration on January 20, ETFs holding approximately 1.1 million bitcoins,” Fadi Aboualfa, head of research at crypto custodian Copper.co, said in emailed comments.
“For Bitcoin, it is worth remembering that Trump oversaw not one but two record cycles during his 2016-2020 presidency. However, these gains came against a backdrop of a weakening dollar, unlike the environment of dollar stronger today.”
Bitcoin and crypto market watchers have also pointed to options data that suggests there is a 15% chance that the price of Bitcoin will reach $100,000 by early 2025.
“The options market still sees a 15% chance of bitcoin surpassing $100,000 by the end of the year, highlighting significant optimism about the long-term market trajectory,” Nick said Forster, founder of decentralized finance protocol Derive, in emailed comments.
However, others warned that there could be a Bitcoin price correction this week, as overenthusiastic traders retreated from their post-election optimism.
“By the end of this week or early next week…a sharp price correction is expected,” Arthur Azizov, chief executive of crypto payments company B2BinPay, adding that Thursday’s announcement of rates interest rate by the Federal Reserve should lead to further price volatility.
“The Bitcoin price chart shows significant uncovered liquidity below the current price, while the higher liquidity has already been absorbed, indicating that a downward move is necessary to support sustainable future growth. By the end of the year, we expect the value of Bitcoin to be between $80,000 and $90,000, with $100,000 remaining an unlikely target in current conditions.
The crypto market has been led higher by meme-based dogecoin, a tongue-in-cheek rival to bitcoin that was adopted by billionaire Elon Musk and is accepted as payment by his companies Tesla and SpaceX.
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The price of bitcoin soared after Donald Trump’s decisive victory in the United States. … (+)
“Dogecoin rose nearly 55% from its November 3 low to Wednesday’s high, fueled by Trump’s victory and anticipation of the election results,” said Alex Kuptsikevich, a market analyst in FxPro chief, in emailed comments.
“In addition to the general positivity for cryptocurrencies, speculators are betting on Musk’s potential position in the new administration. The Tesla founder and director of of the first coins.”
In recent weeks, Musk has championed the so-called Department of Government Effectiveness, which he has named Doge – a nod to the shiba inu doge meme that is also linked to the cryptocurrency dogecoin – And sparked wild, semi-serious speculation that Musk might put “a doge in the Treasury.”
“I met with Elon and we spent two hours together and I told him we were going to create the Doge department,” said Howard Lutnick, chief executive of Wall Street giant Cantor Fitzgerald, who is also leading the transition team. of Trump. said investor and YouTuber Anthony Pompliano last week.
“We’re going to eliminate waste from our $6.5 trillion budget and then we’re going to balance the budget…we have office space that we’re not using, we have procurement waste on a massive scale and I mean on a large scale,” said Lutnick, who claims to have exposure to bitcoin worth hundreds of millions of dollars, adding that “someone has to have the courage to do it.”