In a stunning display of market dynamics, Bitcoin has soared to a new all-time high of $75,000 following the announcement of Donald Trump’s victory in the 2024 US presidential election. This surge reflects a robust wave of optimism sweeping through the cryptocurrency markets, with investors anticipating potential policy shifts that could further favor the burgeoning digital asset sector.
Anticipating a $100,000 Bitcoin
Insights from digital asset custodian Copper.co suggest that Bitcoin’s bullish trend may not just be a fleeting reaction but could indeed gain further momentum. Fadi Aboualfa, Head of Research at Copper.co, shared an intriguing projection, stating, “A $100,000 Bitcoin is quite possible by the time the 47th US President heads to the Capitol for inauguration on January 20, with ETFs holding approximately 1.1 million Bitcoins.” This forecast is grounded in historical ETF accumulation trends coupled with current market data, painting a promising picture for the future of Bitcoin.
Previously, in October, Copper.co had predicted that ETFs might hold just under one million Bitcoin by the US elections—a projection that has closely aligned with current holdings. This significant increase in ETF holdings underscores a growing institutional interest in Bitcoin as a viable hedge against economic uncertainty.
Record Trading Activity
Supporting this bullish sentiment, trading platforms like Robinhood reported unprecedented activity during the election night. The platform witnessed its largest-ever equities overnight session since the launch of its 24-Hour Market. The session saw an 11-fold increase in overnight notional volume from 8 P.M. to 4 A.M., with over 400 million election contracts traded. Notable symbols included COIN, DJT, IBIT, MSTR, NVDA, QQQ, SPY, TSLA, TSLL, and TQQQ. In the crypto sector, Bitcoin, Dogecoin, and Ethereum emerged as some of the most traded assets, highlighting the vibrant engagement from the trading community.
Market analysts are optimistic that President Trump’s administration could usher in fiscal policies that bolster crypto adoption and investment. During his previous tenure, Trump presided over two all-time high cycles for Bitcoin, coinciding with a weakening dollar. Although the current environment features a stronger dollar, the sentiment around cryptocurrency investment remains overwhelmingly positive.
Ethereum’s Steady Course
While Bitcoin steals the spotlight, Ethereum continues to navigate through its own set of challenges and opportunities. Despite favorable supply trends, betting markets currently assign only a 13% chance of Ethereum reaching a new all-time high this year, a slight increase from 8% pre-election. The year-to-date supply growth of Ethereum stands at 89,000 ETH, with 5.7 million coins moved into staking. However, the lukewarm appeal of ETFs has somewhat dampened trader sentiment, even as the broader investor base remains largely unfazed by these developments.
As the crypto landscape continues to evolve, the interplay between market dynamics, regulatory frameworks, and macroeconomic factors will be crucial in shaping the trajectory of digital assets. For more insights into the unfolding trends in the crypto and blockchain sectors, explore our extensive coverage on blockchain recruitment and crypto recruitment.
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