Bitcoin has officially crossed the $85,000 mark for the first time in its history, sparking optimism that it could hit six figures before the year ends. Explore why Bitcoin might reach new heights this November. At precisely 18:41 UTC, Bitcoin’s price soared to a record-breaking $88,455, setting a new all-time high. This milestone comes just one week after former President Donald Trump secured his second term in the 2024 U.S. presidential election, with his victory igniting a fresh wave of enthusiasm among investors.
Trump’s Election Victory Drives Bitcoin’s Surge
Trump’s win has ushered in renewed confidence among market participants, who are increasingly flocking to assets like Bitcoin. The growing demand for “risk-on” investments in the wake of his success has contributed significantly to Bitcoin’s impressive rise. As the market reacts positively, Bitcoin’s price has continued its upward trajectory, with many analysts predicting the cryptocurrency could breach the $100,000 threshold before the end of 2024.
Ryan Lee, the chief analyst at Bitget Research, believes that the results of the U.S. election may set the stage for Bitcoin to surpass the $100,000 mark by the close of the year. According to Lee, implied volatility in the derivatives market and the rising open interest in futures markets are signaling that traders are preparing for a high-volatility move in Bitcoin. Trump’s victory is seen as a positive development for the cryptocurrency sector, with many hoping for clearer regulations that could foster blockchain innovation.
Pro-Crypto Legislative Landscape Under Trump
Trump’s re-election, combined with the Republican Party’s increased influence in the Senate, has bolstered hopes for more favorable policies toward cryptocurrencies. Coinbase CEO Brian Armstrong referred to the current political climate as “the most pro-crypto Congress ever.” The potential for pro-crypto legislation to move forward is boosting investor sentiment, with the anticipation of clearer rules for the cryptocurrency market.
Bitcoin was trading at approximately $87,740 by 1:30 p.m. Pacific Time on Monday, reflecting a 9% increase for the day and a staggering 98% rise for the year. A surge in interest around U.S. exchange-traded funds (ETFs) and Federal Reserve interest rate cuts has further fueled Bitcoin’s rally. The market has seen growing bets that the cryptocurrency could reach $100,000 by the end of the year. According to Bloomberg, $780 million worth of investments were placed on Bitcoin hitting the $100,000 milestone by December 27.
Smaller Cryptocurrencies Also Benefit from Political Shifts
Bitcoin’s rise has had a ripple effect on other digital currencies. Smaller altcoins, including Dogecoin and Litecoin, have experienced notable increases. Dogecoin, which gained popularity through Elon Musk’s vocal support, has surged by nearly 63% in the past five days. Litecoin has also seen a 10% jump during the same period.
Trump’s broader economic policies, including tax cuts, deregulation, and efforts to stimulate domestic growth, have helped fuel a broader market rally. The Standard & Poor’s 500 index even reached new record highs last week. However, Bitcoin’s recent gains have outpaced the performance of traditional investments like stocks and gold.
Crypto-Related Stocks See Major Gains
Shares of cryptocurrency-related companies have also benefited from Trump’s victory. Companies like MicroStrategy, which has incorporated Bitcoin into its corporate strategy, and Coinbase, a major U.S. cryptocurrency exchange, saw their stock prices climb by more than 22% on Monday. Crypto-mining firms, such as MARA Holdings and Riot Platforms, also experienced significant gains, with stock prices rising by 30% and 18%, respectively.
What’s Next for Cryptocurrency Under a Trump Administration?
During the Biden administration, Securities and Exchange Commission (SEC) Chair Gary Gensler expressed concern over the cryptocurrency industry, citing issues with fraud and misconduct. While Trump initially expressed skepticism toward cryptocurrencies, his stance has shifted in recent months, earning the support of crypto investors.
With Trump’s re-election, he is expected to replace Gensler and pursue a more lenient approach to cryptocurrency oversight. Republicans’ growing influence in the Senate and the possible shift in the House of Representatives could lead to the passage of new pro-crypto legislation, further solidifying the industry’s prospects in the coming years.
Bitcoin’s Path to $100,000 and Beyond
With Bitcoin’s impressive climb to $85,000 and a surge of optimism following Trump’s election victory, the cryptocurrency appears poised for potential new highs. A pro-crypto legislative climate, increased institutional interest, and broader acceptance of digital assets have created a promising environment for Bitcoin’s growth. While volatility is likely, market trends suggest that Bitcoin could be on the path to reaching $100,000 by the end of 2024. Investors and crypto enthusiasts will be watching closely, as regulatory shifts and market sentiment continue to shape the future of digital currency.