The recent triumph of Donald Trump over Vice President Kamala Harris in the US presidential election is generating a wave of optimism across the cryptocurrency market. Experts are now forecasting that Bitcoin could surge to an unprecedented $100,000 before the inauguration, which is just a little over two months away.
Pro-Crypto Policies Under Trump’s Administration
With the Trump administration firmly in place, reports from CNBC highlight that Bitcoin has already hit an all-time high of $75,500. This development signals a potential shift towards a more crypto-friendly regulatory environment anticipated to start in 2025. The Republican dominance in both the Senate and the White House is expected to bolster support for Trump’s pro-crypto policies, facilitating further exploration of the cryptocurrency market’s largest digital asset.
Commitment to a National Bitcoin Reserve
Trump has made several significant promises that could reshape the cryptocurrency landscape. A standout pledge is the creation of a national Bitcoin stockpile, aiming to position the US as the “crypto capital of the world.” Additionally, Trump has promised that all future Bitcoin mined domestically will contribute to this national reserve.
Furthermore, Trump plans to dismiss Gary Gensler, the current chair of the US Securities and Exchange Commission (SEC), who has been criticized for his strict regulatory stance during the Biden administration. Under Gensler’s leadership, numerous lawsuits have been filed against major players in the crypto industry, including Binance, Coinbase, and Ripple Labs, resulting in nearly half a billion dollars in legal costs for these companies.
Stimulating Growth and Adoption
The proposed crypto policy under Trump’s administration aims to foster growth and adoption of cryptocurrencies within the United States, with Bitcoin as a pivotal component of his strategy to address the national debt, currently at $36 trillion. These plans have been supported by pro-crypto Senator Cynthia Lummis, who introduced legislation to designate Bitcoin as a national reserve asset. This initiative was a key topic during her speech at the 2024 National Bitcoin Conference in Nashville, where Trump also made a notable appearance, reinforcing his commitment to the sector.
Bitcoin’s Path to $100,000
In light of these developments, CNBC mentions that “multiple analysts” predict Bitcoin could reach the $100,000 milestone before Trump’s inauguration. This projection is especially likely if Trump follows through with his plan to establish a national Bitcoin reserve. Currently, the US government holds over $15 billion in Bitcoin from asset seizures over the years, offering a robust foundation for this initiative.
Alongside Bitcoin’s rally, stocks of US-based firms such as Coinbase and Robinhood have experienced notable gains recently. Coinbase (COIN) shares surged by 25.73%, while Robinhood (HOOD) saw an increase of nearly 18%, reflecting renewed confidence in a more favorable regulatory environment under Trump’s leadership.
Research Supporting Optimistic Projections
Research from Cooper Research corroborates these positive projections, particularly concerning the Bitcoin exchange-traded fund (ETF) market. The firm previously estimated that ETFs could manage nearly 1 million Bitcoins by the election and currently hold approximately 986,000 BTC. Their analysis suggests that if these trends persist, Bitcoin could indeed reach $100,000 by January 20, when Trump is set to be inaugurated, especially if ETFs increase their holdings to around 1.1 million BTC.
As of now, Bitcoin is trading at $74,750, having pulled back slightly from its recent peak of $75,500 reached during Wednesday’s trading session. The path to $100,000 remains a topic of keen interest among investors and analysts alike, with the potential for further growth under Trump’s proposed policies.
