The world's largest cryptocurrency rose to a new high on Tuesday, which analysts predict is just the beginning.
Bitcoin rose above $90,000 on Tuesday afternoon, according to data from Coinbase, which it maintained after a close call late Monday. The leading cryptocurrency broke the record for the biggest one-day gain in history on Monday when measured against the US dollar.
The property is up 115% this year, more than doubling its January 1 price of $42,000. Meanwhile, the total market capitalization of crypto has risen to more than $3.1 trillion, breaking the record of nearly $3.07 trillion in November 2021.
It comes amid growing bullishness on digital assets and broader equities following President-elect Donald Trump's successful comeback bid for the White House last week.
It's been dubbed a “Trump trade,” analysts said earlier. Decrypt Especially following the former president's inauguration on January 20th, they see Bitcoin and digital assets as a huge guilt game.
“With the election behind us, the rally in crypto markets looks set to continue,” Julian Achhorn, head of Auros Ventures, told Decrypt on Tuesday.
Exceeding forecasts at the start of the year, the S&P 500 also rose above 6,000 points for the first time last week, largely supported by the US Federal Reserve cutting interest rates. That is expected to lower borrowing costs and fuel riskier assets, including crypto.
So where to from here?
Bitwise Chief Investment Officer Matt Hugan expects Bitcoin to breach $100,000 and $200,000 by the end of 2025. Others have offered similar targets, including Bernstein, a New York-based global investment management and research firm.
Meanwhile, Bitwise's European Head, Bradley Duke, sees crypto riding on a strong tail – at least for the foreseeable future – as the volatile political situation in the US ushers in a “golden age” for the industry, he said. Decrypt In the description.
That coincides with the broader market's view of Trump's victory as an enabling environment, providing a clear runway from which deregulation and business-friendly policies are expected to make further rallies next year.
For crypto, the Trump administration is expected to drive regulation designed to establish a Bitcoin reserve, protect demand for crypto mining, ease an adversarial environment, and spur innovation.
Many see the market's reaction to macro developments as being strongly skewed in the “Sweet place” Disasters continue.
These include geopolitical concerns in the Middle East and Eastern Europe, the US debt crisis, and climate risks as possible reasons to end the party early.
Bitcoin doesn't seem to care at the moment.
Edited by Andrew Hayward.
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