As bitcoin nears $100,000, investors ask whether the rally can last much longer

Bitcoin’s value is expected to reach $100,000 per coin, driven by a recent rally following Donald Trump’s victory in the U.S. elections. This surge is largely attributed to optimism around Trump’s pro-crypto campaign promises, including the creation of a national bitcoin reserve and the potential replacement of SEC chair Gary Gensler with a pro-crypto candidate. The rally also benefited from institutional interest, spurred by the upcoming launch of Bitcoin ETFs in January 2024.

Traders initially hedged against a possible Biden victory, but after Trump’s win, they repositioned to go long on crypto, believing the regulatory environment would become more favorable. Experts like Bohan Jiang and Mitchell Dong suggest that clearer regulations could lead to massive capital inflows into the digital asset ecosystem.

However, despite the positive outlook, both Jiang and Dong caution that Bitcoin's future remains uncertain beyond the $100,000 mark, with potential shocks from macroeconomics, geopolitics, or the performance of companies like MicroStrategy. MicroStrategy, a major bitcoin investor, has helped fuel the rally through a “feedback loop” where rising stock prices enable further bitcoin purchases. The company's plan to raise $42 billion for more bitcoin acquisitions could significantly influence Bitcoin’s value.

In the long term, while some predict Bitcoin could reach between $120,000 and $200,000 by 2026, the crypto market remains highly volatile, and investors should expect continued unpredictability.