Optimism is running high in the cryptocurrency market following Donald Trump's victory in the US presidential election over Vice President Kamala Harris. Analysts are now predicting that Bitcoin could hit a new high of $100,000 before the presidential inauguration, just over two months away.
Trump’s Election Signals Shift to Pro-Crypto Policies
With the Trump administration firmly established, CNBC reported that Bitcoin hit an all-time high of $75,500, signaling a potential shift to a more crypto-friendly regulatory environment starting in 2025.
The combination of Republican control of both the Senate and the White House is expected to solidify support for Trump’s pro-crypto initiatives, leading to deeper price discovery for the largest digital asset on the market.
Trump has made a number of important promises that could have a significant impact on the cryptocurrency landscape. One of the most notable is the creation of a national Bitcoin reserve, positioning the United States as the “cryptocurrency capital of the world.” He also pledged to ensure that all future Bitcoin mined domestically would contribute to this national reserve.
Furthermore, Trump has vowed to fire Gary Gensler, the current chairman of the US Securities and Exchange Commission (SEC), who has faced criticism for his heavy-handed regulatory approach under the Biden administration.
Gensler's tenure has seen multiple lawsuits targeting major companies in the cryptocurrency space, including Binance, Coinbase, and Ripple Labs, costing the companies nearly half a billion dollars in legal fees.
Trump's proposed cryptocurrency policy is designed to stimulate growth and adoption in the United States, with Bitcoin positioned as a central element in his strategy to tackle the national debt, which now stands at $36 trillion.
His administration’s plans were echoed by crypto-friendly Senator Cynthia Lummis, who introduced legislation to designate Bitcoin as a national reserve asset. The initiative was discussed during her speech at the 2024 National Bitcoin Conference in Nashville, where Trump also made a notable appearance, further cementing his commitment to the sector.
Bitcoin is on track to hit $100,000
With these developments, CNBC notes that "many analysts" predict Bitcoin could hit $100,000 before Trump's inauguration, especially if he follows through on his promise to create a national Bitcoin reserve.
The US government currently holds over $15 billion in Bitcoin from asset seizures over the years, providing a solid foundation for this initiative.
In addition to Bitcoin’s rally, shares of U.S.-based companies like Coinbase and Robinhood have also seen significant gains in recent days. Coinbase (COIN) shares jumped 25.73%, while Robinhood (HOOD) surged nearly 18%, reflecting the industry’s renewed confidence in a more favorable regulatory environment under Trump.
Research from Cooper Research aligns with these bullish predictions, particularly regarding the Bitcoin exchange-traded fund (ETF) market. The firm previously estimated that ETFs could manage nearly 1 million Bitcoins by the time of the election and currently hold around 986,000 BTC.
Their analysis suggests that if this trend continues, Bitcoin could actually hit $100,000 by January 20, the day Trump takes office, especially if ETFs increase their holdings to around 1.1 million BTC.