Bitcoin Price Forecasted to Reach $100,000 Before Trump’s Inauguration
Following Donald Trump’s victory in the US presidential election against Vice President Kamala Harris, optimism is rising in the cryptocurrency market. Analysts project Bitcoin could reach $100,000 before the presidential inauguration in over two months.
Trump’s Election Signals Shift Toward Pro-Crypto Policies
With Trump’s administration established, CNBC reports Bitcoin has reached an all-time high of $75,500, indicating a potential shift to a more crypto-friendly regulatory environment starting in 2025.
The Republican control of both the Senate and the White House is expected to support Trump’s pro-crypto initiatives, promoting further price discovery for Bitcoin.
Trump has made key promises that may impact the cryptocurrency landscape, including establishing a national Bitcoin stockpile, positioning the US as the “crypto capital of the world.” He also pledged that all future Bitcoin mined in the country would contribute to this reserve.
Furthermore, Trump aims to remove Gary Gensler, the current chair of the US Securities and Exchange Commission (SEC), criticized for aggressive regulatory actions under the Biden administration. Gensler’s tenure has involved numerous lawsuits targeting major crypto firms, resulting in nearly half a billion dollars in legal fees.
Trump's proposed policies aim to stimulate growth and adoption within the United States, with Bitcoin central to his strategy for addressing the national debt of $36 trillion. Senator Cynthia Lummis has echoed these plans by introducing legislation to designate Bitcoin as a national reserve asset, discussed at the 2024 National Bitcoin Conference where Trump appeared.
Bitcoin On Track For $100,000
Given these developments, CNBC notes that multiple analysts are forecasting Bitcoin could reach $100,000 before Trump's inauguration, especially if he follows through on creating a national Bitcoin stockpile.
The US government currently holds over $15 billion in Bitcoin from asset seizures, providing a foundation for this initiative.
In addition, shares of US-based firms such as Coinbase and Robinhood have gained significantly; Coinbase (COIN) shares rose by 25.73%, while Robinhood (HOOD) increased nearly 18%, reflecting renewed confidence in a favorable regulatory environment under Trump.
Cooper Research's analysis aligns with optimistic projections regarding the Bitcoin exchange-traded fund (ETF) market, estimating ETFs could manage nearly 1 million Bitcoins by election time, currently holding about 986,000 BTC. Their assessment suggests that if trends continue, Bitcoin could reach $100,000 by January 20, when Trump is set to be inaugurated, particularly if ETFs increase holdings to around 1.1 million BTC.
Currently, BTC trades at $74,750, having retreated from its record high of $75,500 set during Wednesday's trading session.
Featured image from DALL-E, chart from TradingView.com.