$Bitcoin (BTC.CC)$ Bitcoin recently hit a new milestone by momentarily reaching $90,000 on November 12th, amid ongoing excitement following the U.S. presidential election. The cryptocurrency's price briefly touched this historical high before experiencing substantial volatility and is currently valued at approximately $88,221. This rally is largely driven by positive market forecasts and the potential for more favorable regulation under former President Donald Trump's second term, who has hinted at making the U.S. the "crypto capital of the world."
$Ethereum (ETH.CC)$ and other digital assets have also seen significant gains during this period. Ethereum peaked at $3,442 and now stands at $3,266, while meme coin Dogecoin and Solana rose impressively by 51% and 6.8%, respectively.
Market optimism is further buoyed by predictions from financial experts and institutions. Geoff Kendrick, the Global Head of Digital Assets Research at Standard Chartered, asserted that Bitcoin’s price could soar to $125,000 by the end of this year and potentially reach $200,000 by the end of 2025. Similarly, Alex Kuptsikevich from FxPro suggested that reaching $100,000 to $110,000 is now a matter of weeks or days.
Nick Philpott, co-founder of Zodia Markets, highlighted the influx of investments into Bitcoin following Trump’s victory, stating, “Our target range for Bitcoin post-Trump's victory was $75,000 to $80,000, with expectations of inflows from ETFs and a broader crypto capital influx potentially pushing Bitcoin to $100,000 early in the next quarter, if not sooner.”
The bullish sentiment is evident in the options market as well, where a significant number of bullish options with strike prices between $80,000 and $100,000 could further add to the momentum. According to data from Deribit, about 9,635 Bitcoins in open interest contracts are betting on Bitcoin reaching $100,000 by December 27th, representing the largest trade for that date.
Despite the positive outlook, caution remains within parts of the investment community. Mark Hackett, Chief of Investment Research at Nationwide, warned that the market's enthusiasm might outpace fundamental values, introducing risks. Additionally, there's skepticism about whether Trump will fulfill his crypto-friendly campaign promises.
The cryptocurrency market's growth is also reflected in its increasing market capitalization, which surpassed $3 trillion for the first time since November 2021. This surge has also propelled the performance of related investment products. BlackRock's iShares Bitcoin Trust fund, for instance, set a record with a single-day net inflow of nearly $1.4 billion last Thursday, surpassing the assets of its $33 billion iShares Gold Trust fund.
As the market navigates through these developments, investors are encouraged to remain vigilant of the underlying risks while potentially riding the wave of this bullish crypto market trend.
Bitcoin has the highest correlation with global liquidity, making this undoubtedly a significant trend. With zero-commission trading, are you sure you don't want to give it a try?
