Bitcoin price has been on a remarkable rally, soaring over 33% since Donald Trump's victory in the U.S. presidential election on November 5. On Tuesday, the world's leading cryptocurrency briefly surpassed $90,000 (€85,000), following a recent surge past the $80,000 threshold over the weekend.
Some analysts warn that near-term profit-taking could cap the upside potential for risk assets. On Tuesday, Wall Street saw a broad-based selloff after hitting multiple new all-time highs, while major Asian stock indexes also dropped on Wednesday ahead of upcoming U.S. inflation data. The U.S. Consumer Price Index (CPI) is expected to stay above the Federal Reserve’s target for October, which could slow the pace of rate cuts and potentially lead to further corrections in the rally sparked by Trump’s election victory.
Bitcoin is well-known for its extreme volatility, largely fueled by speculation rather than underlying fundamentals. The cryptocurrency market's relatively low liquidity means that large trades by major holders, or "whales," can have a substantial impact on prices, particularly on smaller exchanges or during periods of reduced trading volume.
Crypto markets saw trading volumes comparable to Election Day on Tuesday, when Bitcoin briefly surpassed $90,000 (€85,000). However, the price moved within a narrow range, signaling the potential for a major liquidation. Increasingly, traders are betting that Bitcoin could hit the six-figure mark of $100,000 (€94,000) by the end of the year. That said, markets don’t always move in a straight line, and a reversal of the Trump rally could lead to declines in assets that have benefited from his win.
Dilin Wu, a market research analyst at Pepperstone, noted in an email, "Trump’s proposals remain uncertain until we see how control of the House and potential internal party opposition play out." He added that Trump’s policies could lead to larger trade deficits and rising inflation, which might hurt the U.S. economy over the long term, ultimately weighing on risk assets like Bitcoin.
Skybridge Capital founder Anthony Scaramucci predicts a substantial rise in Bitcoin’s value, driven by the possibility of a more neutral regulatory environment for cryptocurrencies under the incoming U.S. administration.
In a recent interview with Saxo, Scaramucci, who is also a major investor in Bitcoin (BTC/USD) and Solana (SOL/USD), shared his optimism about the future of U.S. crypto policy. He expressed confidence that a shift toward a less politicized regulatory approach could stimulate growth in the decentralized finance and blockchain sectors.
Scaramucci is set to be a keynote speaker at Benzinga’s upcoming "Future of Digital Assets" event on Tuesday, where he will likely discuss his outlook for the industry.
Scaramucci forecasts that Bitcoin’s value could soar to $150,000 if regulatory challenges are resolved. He also noted that former U.S. Securities and Exchange Commission (SEC) Chair Jay Clayton and ex-Acting Comptroller of the Currency Brian Brooks are reportedly working on a “100-day plan” to overhaul stablecoin legislation and clarify asset classifications.
According to Scaramucci, these efforts could significantly boost the cryptocurrency sector by providing much-needed regulatory clarity.
Bitcoin briefly surpassed $90,000 for the first time this week, as investors continued to drive up cryptocurrency prices following the 2024 U.S. election.
Ahead of the vote, many analysts viewed President-elect Trump as the more crypto-friendly candidate, highlighting his campaign promise to make the U.S. the “crypto capital of the planet” and a “Bitcoin superpower.”
In a September report, Standard Chartered analyst Geoff Kendrick had predicted a potential crypto breakout regardless of the election outcome, but with a significantly higher price target in the event of a Trump victory.
Since election night, Bitcoin, the largest and most widely traded cryptocurrency, has surged by 30%, with crypto experts suggesting that further gains are possible in the short term.
“The next target we’re aiming for is $100,000,” says Federico Brokate, vice president and head of U.S. business at crypto ETF firm 21Shares. “We think it’s realistic to reach that level by Inauguration Day.”
A significant portion of the upward price momentum comes from investor optimism about what a Republican-controlled government might mean for digital assets, Brokate explains. However, he believes the long-term outlook for crypto would have been similar no matter who won the election.
“A Kamala presidency would have meant the same things for crypto and digital assets in four years as a Trump presidency,” Brokate says. “This asset class is fundamentally apolitical.”
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