Bitcoin has been rallying since Trump's victory, with the token hitting $75,000 on election night when it was clear that the Republican was on his way to victory. On Tuesday, Nov. 12, bitcoin reached an all-time high in value of $89,998 before stabilizing, with this recent surge attributed to Arizona and Nevada calling their elections for Trump.
Cryptocurrency investors are excited by Trump's victory due to his friendliness to the digital currency industry. Russ Mould, investment director for the British financial services firm AJ Bell, believes bitcoin was "always going to soar" if Trump won the election.(Related: Gold research firm explains Bitcoin's intrinsic value: It cannot be easily confiscated by government.)
"Trump has already declared his love of the digital currency and crypto traders now have a new narrative by which to get even more excited about where the price could go," said Mould.
The president-elect has previously expressed his desire to keep the cryptocurrency industry free from government intervention, including from the introduction of a feared central bank digital currency like the digital dollar. At one point he even expressed his desire to turn the U.S. into "the crypto capital of the planet."
"If crypto is going to define the future, I want it to be mined, minted and made in the U.S.A.," said Trump during the campaign trail.
A second Trump administration is expected to have more crypto products, including ETFs (exchange-traded funds), entering mainstream financial markets. The U.S. only has 11 crypto ETFs, and Trump's presidency is expected to multiply this number.
Bitcoin could hit $100,000 mark by year's end
Bitcoin's value has surged by over 40 percent in the one month starting on Oct. 13. Analysts also note that profit-taking – the process by which investors sell their assets when its value increases – is only about half as intense as during previous all-time high cycles, suggesting that many investors are expecting the value of bitcoin to keep increasing.
"While profit-taking is substantial, it remains below historical peaks, suggesting additional room for further gains before reaching potential demand exhaustion," noted Glassnode, a financial consulting and cryptocurrency analysis firm, in a Nov. 12 market report. "We've observed $20.4 billion in realized profits since entering this latest all-time high discovery phase."
Geoff Kendrick, global head of digital assets research at the London-based financial services company Standard Chartered, predicts that bitcoin will keep increasing in value and a $100,000 valuation is "easily achievable" by Dec. 27, when certain bitcoin options expire.
Kendrick further predicts that, by Jan. 20, 2025, bitcoin could surge to a record-high of $125,000.
"$125,000, which I forecast for the end of the year, is the next level, although I note [that] following the 2016 election a lot of Trump trades peaked around the time of the Jan. 20 inauguration," wrote Kendrick in an email. "So if bitcoin can't reach $125,000 by Dec. 31, I think it will by Jan. 20."
Watch this clip from "Market Navigator" as finance expert Jan Van Eck predicts that bitcoin will keep hitting record highs in the lead-up to Trump's second inauguration.
This video is from the TrendingNews channel on Brighteon.com.
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Sources include:
DailyMail.co.uk
Reuters.com
CoinTelegraph.com
CryptoNews.com.au
Brighteon.com
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