Bitcoin hit a record high this week, rising above $90,000, as investors ramped up their crypto purchases following the 2024 elections.
Market experts are pointing to President-elect Donald Trump’s perceived crypto-friendly stance as a catalyst for the rally, with some predicting the digital asset could hit $100,000 by Inauguration Day (January 20).
Trump vowed during his campaign to make the US the “crypto capital of the planet” and transform the country into a “Bitcoin superpower.” That sentiment contrasts with a more cautious regulatory stance seen in previous administrations and has fueled expectations that a Trump presidency could create a favorable environment for digital assets.
Standard Chartered analyst Geoff Kendrick predicted a crypto rally regardless of the election result, but gave a higher target if Trump won. The result has been a rapid 30% increase in Bitcoin’s value since election night, and analysts say the uptrend could continue.
“Our next price target is $100,000,” said Federico Brokate, vice president of 21Shares, a leading crypto ETF firm. “We believe that is achievable by Inauguration Day.”
Brokate attributes much of Bitcoin’s current momentum to investor optimism about the potential impact of a Republican-controlled government on crypto. However, he notes that the long-term outlook for digital assets is likely to remain positive regardless of political leadership. “A Kamala presidency would be the same for crypto as a Trump presidency in four years,” Brokate said. “At the end of the day, this asset class is apolitical.”
Andy Baehr, Managing Director of CoinDesk Indices, highlighted the different groups driving the growth of the crypto sector: industry professionals, enthusiast investors, and the “five percent” individual investors who allocate a small portion of their portfolios to crypto. Despite the expansion of access to crypto through ETFs and brokerages, Baehr noted that there is still significant room for adoption.
“There are a lot of ‘five percenters’ that have yet to find their way into a Bitcoin ETF,” Baehr said. “Cryptocurrencies have tremendous adoption potential, especially as they become as accessible as traditional assets like stocks or mutual funds.”
*This is not investment advice.