The cryptocurrency market is experiencing a resurgence, with multiple digital assets reaching significant highs and Bitcoin setting new records. The total market capitalization is nearing $3 trillion, reminiscent of the peak in November 2021.
Market momentum is strong, fueled by President-elect Donald Trump's victory, robust corporate earnings, and rising consumer sentiment. Ryan McMillin, chief investment officer at Merkle Tree Capital, believes the rally is just beginning, driven by the removal of election uncertainty.
Trump's "red sweep" has further boosted confidence that favorable legislation for the crypto industry will face minimal opposition. Promises made during his campaign include establishing a Bitcoin reserve and creating a crypto council.
Jamie Coutts, Chief Crypto Analyst at Real Vision, noted that current conditions are favorable for crypto, predicting the post-election rally could extend into January with significant growth over the next nine to twelve months.
However, Jehan Chu of Kenetic cautioned that while the rally is gaining momentum, historical trends suggest prolonged success is not guaranteed. He highlighted geopolitical risks, rising U.S. debt, and potential climate disasters as potential disruptors.
McMillin forecasts a potential price of $100,000 for Bitcoin by year-end, supported by continued ETF inflows. Coutts pointed to risk indicators, noting that if the MOVE Index rises above 130, the 10-year U.S. Treasury yield exceeds 4.5%, or the DXY surpasses 105.5, it could deter crypto investments. Currently, the MOVE Index is at 98.85, the 10-year yield at 4.31%, and the DXY nearing 104.95.
