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Bitcoin rocketed higher as Donald Trump clinched victory in the U.S. presidential election, setting up a “perfect storm” for the bitcoin price in weeks ahead.
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The bitcoin price has smashed its previous all-time high, climbing above $75,000 per bitcoin, while other major cryptocurrencies have also soared, led by the meme-based dogecoin that’s a favorite of Tesla billionaire Elon Musk as speculation mounts over his plans to avert a “financial emergency.”
Now, as traders turn to the Federal Reserve interest rate decision this week, bullish bitcoin traders and analysts are betting the bitcoin price could surge to $100,000 by the new year.
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Tesla billionaire Elon Musk has campaigned for Donald Trump over the last month, with many of his … [+]
“Bitcoin is the one asset that was always going to soar if Trump returned to the White House,” Russ Mould, investment director at AJ Bell, said in emailed comments.
“A brief jump to $75,281 put the cryptocurrency at a new all-time high and fired up traders to speculate when, not if, it will smash through $100,000. 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.”
“Bitcoin could reach $100,000 by December or January,” Markus Thielen, the chief executive of 10x Research, said in an emailed note.
The bitcoin price rally going into the election comes after Wall Street giants led by the world’s largest asset manager Blackrock have hoovered up huge volumes of bitcoin for their newly minted spot bitcoin exchange-traded funds (ETFs).
“We have back-tested the ETF accumulation trend against potential price ranges, suggesting a $100,000 bitcoin is quite possible by the time the 47th U.S. president heads to the Capitol for inauguration on January 20, with ETFs holding approximately 1.1 million bitcoins,” Fadi Aboualfa, head of research at crypto custodian Copper.co, said in emailed comments.
“For bitcoin, it’s worth remembering that Trump oversaw not one but two all-time high cycles during his 2016-2020 presidency. However, those gains came against a backdrop of a weakening dollar, unlike the stronger dollar environment today.”
Bitcoin and crypto market watchers also pointed to options data that suggested there is a 15% chance the bitcoin price reaches $100,000 by the beginning of 2025.
“The options market still sees a 15% chance for bitcoin to surpass $100,000 by the end of the year, highlighting a significant optimism in the longer-term market trajectory,” Nick Forster, founder of decentralized finance protocol Derive, said in emailed comments.
However, others warned there may be a bitcoin price correction this week as overenthusiastic traders pull back from their post-election optimism.
“By late this week or early next … a sharp price correction is anticipated,” Arthur Azizov, the chief executive of crypto payments company B2BinPay, adding Thursday’s Federal Reserve interest rate announcement is expected to bring further price volatility.
“The bitcoin price chart shows significant uncovered liquidity below the current price, while liquidity above has already been absorbed, indicating that a downward movement is needed to support sustainable future growth. By year-end, we project bitcoin’s value to range between $80,000 and $90,000, with $100,000 remaining an unlikely target under current conditions.”
The crypto market has been led higher by the meme-based dogecoin, a tongue-in-cheek bitcoin rival that’s been embraced by billionaire Elon Musk and is accepted as payment across his companies Tesla and SpaceX.
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The bitcoin price has rocketed higher following Donald Trump’s decisive victory in the U.S. … [+]
“Dogecoin rallied nearly 55% from its November 3 lows to Wednesday’s high, fuelled by Trump’s victory and anticipation around the election results,” Alex Kuptsikevich, FxPro chief market analyst, said in emailed comments.
“In addition to the general positivity for cryptocurrencies, speculators are betting on Musk’s potential position in the new administration. The Tesla founder and head of X (formerly Twitter) has maintained the recognition of one of the first meme coins for many years.”
Over recent weeks, Musk has championed the so-called Department of Government Efficiency, which he has branded Doge—a nod to the shiba inu doge meme that’s also linked to the dogecoin cryptocurrency—and sparked wild, semi-serious speculation Musk could put “doge in the Treasury.”
“I met with Elon and we spent two hours together and and I told him we were going to create the department Doge,” Howard Lutnick, the chief executive of Wall Street giant Cantor Fitzgerald who is also heading up Trump’s transition team, told investor and YouTuber Anthony Pompliano last week.
“We’re going to rip the waste out of our $6.5 trillion budget and we are going to then balance the budget … we have offices we don’t use, we have procurement waste at vast scale and I mean vast scale,” said Lutnick, who claims to have hundreds of millions of dollars worth of exposure to bitcoin, adding “someone has to have the guts to do it.”
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