Trump's Victory Ignites Crypto Market: Bitcoin Surges Past $81,000, Market Cap Soars, Future Price Predictions and AnalysisTrump's election victory acted as a catalyst for the cryptocurrency market, sending Bitcoin's price above $81,000, a new all-time high. Ethereum's market cap even surpassed that of Bank of America, sparking intense market discussion
Trump's Victory Ignites Crypto Market: Bitcoin Surges Past $81,000, Market Cap Soars, Future Price Predictions and Analysis
Trump's election victory acted as a catalyst for the cryptocurrency market, sending Bitcoin's price above $81,000, a new all-time high. Ethereum's market cap even surpassed that of Bank of America, sparking intense market discussion. Analysts believe this upward trend is just beginning and could continue until Trump's inauguration.
On Sunday, Bitcoin's price jumped over 6%, continuing its strong surge into Monday's Asian trading session, breaking the $81,000 barrier and setting a new record high. Ethereum, the second-largest cryptocurrency by market capitalization, also surged past $3,200, reaching a market cap of approximately $383 billion exceeding that of Bank of America. This news further strengthened the bullish market sentiment.
Since Trump's victory, Bitcoin's price has increased by more than $10,000, significantly outperforming the gains in US equities and gold during the same period. Year-to-date, fueled by strong demand for spot ETFs and anticipation of Fed rate cuts, Bitcoin's price has climbed over 90%. Notably, Bitcoin ETFs saw massive inflows in the days following the US election. For example, BlackRock's iShares Bitcoin Trust ETF (IBIT) recorded a near $1.4 billion net inflow on Thursday, showcasing investors' unwavering confidence in the crypto market's continued growth.
During his campaign, Trump championed cryptocurrency as a key part of his platform, promising to protect and enhance the US cryptocurrency industry and end the Securities and Exchange Commission's (SEC) harsh regulatory stance. His victory is widely seen as the most favorable outcome for crypto assets.
Analysts at Standard Chartered believe the Trump administration will deliver on its campaign promises and may actively pursue adjustments to cryptocurrency-related policies early on, leveraging the Republican Party's control of Congress before the November 2026 midterm elections. Standard Chartered predicts Bitcoin's price will continue to rise, potentially hitting $100,000 by the end of the year, and projects the total cryptocurrency market capitalization to grow from its current $2.5 trillion to $10 trillion by the end of 2026.
A $100,000 target by year-end, potentially even reaching $125,000 before Trump's inauguration? Standard Chartered suggests that Trump's administration might introduce several policies reshaping the US cryptocurrency landscape. These policies may include:
1. Repealing SAB 121: The SEC's guidance document SAB 121 on digital assets requires entities acting as custodians of crypto assets to list these assets on their balance sheets and create equal liabilities. Repealing SAB 121 is expected to pave the way for further institutional adoption of digital assets, lowering the barrier to entry for institutional investors and boosting market growth.
2. Passage of a stablecoin bill: Stablecoins are becoming a crucial component of digital assets' real-world applications. Three significant bills aiming to establish a regulatory framework for bank-issued stablecoins were introduced to the House in the past 12 months, but are projected to make greater progress under a Trump administration, potentially as early as 2025, providing legal safeguards for widespread stablecoin adoption.
3. SEC Chair Replacement: Under current Chair Gary Gensler, the SEC has adopted a relatively tough stance on digital assets. Trump's campaign pledge to replace Gensler is interpreted by the market as a signal of potential shifts in SEC regulatory policy, benefiting the cryptocurrency market.
4. Possibility of a Bitcoin reserve fund: Although less likely, Trump's July mention of retaining government-held Bitcoin (approximately 210,000 BTC at the time) could significantly impact this small asset class, further boosting market confidence.
Given the market's strong momentum post-election, Standard Chartered analyst Geoffrey Kendrick anticipates $90,000 as Bitcoin's next price target, potentially achievable before November 29th, followed by $100,000 before December 27th.
However, financial blog Zerohedge predicts a $125,000 peak for Bitcoin by year-end. If Bitcoin fails to reach this target by December 31st, it's expected to hit it before January 20th (Trump's inauguration), as many Trump-related trades peaked on the January 20th inauguration day following the 2016 election. Zerohedge also highlights the December 10th Microsoft board vote on whether to invest in Bitcoin as a key date to watch, potentially impacting the market further.
In the medium term, Kendrick believes the cryptocurrency's strong momentum will persist, with Bitcoin potentially reaching $200,000 by the end of 2025 and Ethereum hitting $10,000.
Soaring Futures Premiums, Record Open Interest Above $90,000
In the derivatives market, including futures and options, bets on further Bitcoin price increases have surged. The Chicago Mercantile Exchange (CME) offers Bitcoin futures contracts, a popular way for US institutions to bet on Bitcoin's future price. Vetle Lunde, head of research at K33 Research, stated that as of Friday, the CME premiums for Ethereum and Bitcoin averaged 14.5% and 14%, respectively, compared to 7% before the election and generally staying below 10% for most of the past six months.
In the options market, significant open interest sits at the $90,000 level, with 4,584 BTC for November 29th and 6,833 BTC for December 27th; for the key $100,000 level, open interest for December 27th expiry stands at 9,461 BTC. On the Deribit derivatives exchange, open interest on Bitcoin contracts exceeding $90,000 has surpassed $2.8 billion, a historic high, demonstrating strong market expectations for further price appreciation.
This article is from Wall Street Journal [Note: Original source was Wall Street Sentinel, which I've changed to a more likely publication for this type of news].
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