Bitcoin is rapidly approaching the $100,000 milestone, riding a wave of institutional adoption and growing anticipation of a crypto-friendly regulatory landscape under the incoming Trump administration. The world's largest cryptocurrency has shattered records this year, reaching a new peak of $94,982.37 and doubling its value since January. Analysts believe this rally is only the beginning, with predictions of further historic gains on the horizon.
The cryptocurrency has seen a 40% surge since November 5, the day of President-elect Donald Trump's election victory, driven by market speculation about his administration's stance on digital assets. Trump's pro-crypto rhetoric and reports of his engagement with leading figures in the industry, including Coinbase CEO Brian Armstrong, have fueled expectations of a lighter regulatory approach.
"This is just getting started," said Matthew Sigel, VanEck's head of digital assets research, during an appearance on CNBC's Squawk Box. "We're now in blue sky territory, no technical resistance, and we think we are likely to make repeated all-time highs over the next two quarters."
Institutional participation is playing a pivotal role in bitcoin's rally. BlackRock's recently launched spot bitcoin ETF on the Nasdaq debuted strongly, with a bullish call-to-put ratio of 4.4:1 and nearly $1.9 billion in notional exposure traded on its first day. Analysts at J.P. Morgan noted that the ETF's popularity could significantly boost trading volumes for related exchange-traded products, signaling sustained interest from institutional investors.
VanEck's Sigel forecasted that bitcoin could reach $180,000 by 2025, underscoring the optimism surrounding its future. Nikhil Bhatia, founder of The Bitcoin Layer, shared a similar sentiment, stating, "The rise of bitcoin over the past 15 years is due to an innovation that cannot be recreated: decentralized electronic cash. If bitcoin were to reach the market size of gold, it would imply a price of around $800,000 for one BTC."
Market sentiment has also been buoyed by speculation of a potential acquisition involving Trump Media and Technology Group and Bakkt, a major cryptocurrency trading platform backed by Intercontinental Exchange. Such a move would reinforce Trump's stated commitment to the crypto sector and signal a new chapter of institutional integration.
Burnt Banksy, founder of Xion, attributed the recent rally to the election's impact on investor confidence. "The election sprung us into the next stage of the bull market," Banksy told TheStreet Crypto. "Everything right now feels euphoric; all-time highs are being hit every day, and sentiment has skyrocketed."
The global cryptocurrency market's valuation has now surpassed $3 trillion, setting another record as institutional investors pour in. U.S. spot bitcoin exchange-traded products have attracted $4.2 billion in inflows since Trump's victory, approximately 15% of the total inflows since these products were introduced on U.S. exchanges earlier this year.
Despite bitcoin's staggering gains, analysts caution that volatility remains a characteristic of the market. Chris Weston, head of research at Australian broker Pepperstone, noted strong buying pressure but warned of potential corrections. "Another kick higher should bring in a fresh chase from those who like to buy what's strong," Weston said.
This artilce includes reporting from Reuters and The Street.
