After President Donald Trump's election victory, Bitcoin is expected to break the $100,000 mark by the end of the year.
James Butterfill, head of research at CoinShares, indicated that with Trump's victory and the Republican majority in the Senate, it becomes easier to push for the 'anticipated loose regulatory framework,' making it 'possible now' for Bitcoin to rise to $100,000 — which would mean a 33% increase.
Butterfill stated in an interview with CNBC that a $100,000 Bitcoin 'does not seem unreasonable,' as it corresponds to '10% of the gold market share.'
Trump defeated Vice President Kamala Harris on Wednesday to win the 2024 U.S. election, having promised several pro-cryptocurrency policies in the months leading up to the election.
One of the promises is to fire SEC Chairman Gary Gensler, who has taken over 100 actions against cryptocurrency companies during his tenure.
The SEC has sued cryptocurrency exchanges Coinbase, Binance, and blockchain company Ripple, closely related to cryptocurrency XRP, accusing these companies of violating securities laws.
Expectations of cryptocurrency-friendly regulatory policies
Another promise from Trump is to create a Bitcoin reserve for storing digital currencies accumulated by the federal government through the seizure of financial criminals' assets.
He also promised to promote the development of Bitcoin mining in the U.S., expressing a desire for all remaining Bitcoins to be mined in America.
Butterfill stated that he believes the main catalysts driving Bitcoin's future rise include changes in SEC leadership, cryptocurrency-friendly regulatory policies, and further adoption of Bitcoin by large companies. He also noted that the Federal Reserve's interest rate cut on Thursday could drive Bitcoin higher.
Jag Kooner, head of derivatives at the Bitfinex cryptocurrency exchange, stated that while predicting Bitcoin prices is difficult, reaching $100,000 in a few months 'does not seem too far-fetched.'
Kooner told CNBC via email: 'Given the current market trends, we expect limited downside for Bitcoin, and we have avoided what once seemed a very likely recession.'
Bitcoin may reach $100,000 when Trump takes office
Fadi Aboualfa, head of research at the crypto custodian Copper.co, stated that Bitcoin could reach $100,000 when Trump is inaugurated as president on January 20, 2025.
Aboualfa noted in his written comments after Trump's victory: 'For Bitcoin, it is worth remembering that Trump witnessed two historic peak cycles during his presidency from 2016 to 2020.'
However, he also mentioned that these increases 'occurred against the backdrop of a weakening dollar, unlike today's strong dollar environment.'
Nonetheless, Aboualfa added that due to the current exchange-traded funds (ETFs) holding about 1.1 million Bitcoins, market momentum in the coming months may remain positive.
Other catalysts
Kooner added that other factors influencing Bitcoin price movements include the long-term effects of Bitcoin's 'halving' event. The halving is a technical event in the Bitcoin blockchain that occurs every four years, reducing the supply of Bitcoins awarded to successfully mining miners by half.
He also mentioned that expectations of interest rate cuts by the Federal Reserve, avoidance of recession, and a strong U.S. labor market could 'drive broader adoption of Bitcoin and enhance market confidence in Bitcoin's future and its application in the economy.#DOGE看涨情绪飙升 #BinanceLabs投资BIOProtocol #特斯拉市值重上1万亿美元 #BTC挑战8W2大关 #SUI的单边行情 $BTC $ETH $SOL
