A week after the U.S. elections, there has been a historic increase in the price of Bitcoin. As Bloomberg highlights, the cryptocurrency has continued its unstoppable rise, surpassing $88,000 for the first time, driven by the acceptance of digital assets by the Republican candidate, Donald Trump.
According to Eric Demuth, co-founder and CEO of Bitpanda, the fact that Bitcoin has reached a new all-time high is a clear sign of the change occurring in the financial ecosystem. “This year, we have already surpassed the price record twice, and everything points to the fact that in the coming years, we may continue to see more. Among the factors driving this surge are the constant progress in the adoption, integration, and regulation of digital assets, along with the growing influx of institutional capital from traditional financial markets,” explained Eric Demuth.
The CEO of Bitpanda explains that during these bullish periods, the market expects prices to continue rising, which creates sustained buying and a positive feedback effect that drives prices even higher. Additionally, these periods are usually marked by increased media coverage, growing public interest, and favorable momentum for the market. “Bitcoin is reaching new highs every day, suggesting that we are at the start of a new bull run. It is very likely that this rally will continue for some time. We are already quite close to the $90,000 mark, and there is a real possibility that we will see $100,000 this year or even this month. Therefore, those looking to benefit in the short term should act quickly. However, what really matters is maintaining a long-term perspective and the overall market sentiment toward cryptocurrencies, which continues to be very optimistic,” he states.
From Kraken, they also highlight that with a Trump presidency, the market anticipates greater clarity for cryptocurrencies, both at the administrative and legislative levels. The market would view a complete Republican victory favorably, as it increases the chances of a cryptocurrency innovation agenda with fewer delays, as noted by the entity. “This is the first time that a U.S. president has openly supported a progressive cryptocurrency agenda. The Trump administration’s openness toward the sector offers new positive catalysts, such as the possibility of a strategic Bitcoin reserve and reviews of more conservative tokenomics policies,” emphasizes Kraken.
“With Trump’s clear election as the 47th president of the United States, a new direction has been set for the sector. The main source of uncertainty for the cryptocurrency market—the unclear and harmful actions by the SEC—could soon be replaced by transparent and progressive crypto regulation, which will meet the market’s expectations. It is expected that the current SEC chairman, Gary Gensler, will be removed by February at the latest. This decision will likely accelerate ongoing lawsuits and allow existing applications to be processed more quickly, facilitating the entry of new applications,” Demuth adds.
From the Swiss bank Julius Baer, their experts have observed that, beyond the persistence of post-electoral enthusiasm, Bitcoin’s prices seem to be well supported by strong ETF inflows, as well as relatively low market depth. “Looking ahead, volatility should continue, and despite the strong rebound, we see few obstacles in the near future for Bitcoin,” highlight Julius Baer.
The good state of the Bitcoin market is reflected in the success of some investment funds. For example, eToro reports that BlackRock’s spot Bitcoin ETF has surpassed the valuation of its Gold ETF in terms of net assets for the first time last week. “The IBIT spot Bitcoin ETF currently has net assets of $39.1 billion, compared to BlackRock’s iShares Gold Trust (IAU), which has net assets of $32.4 billion. What makes this achievement even more remarkable is that the IBIT ETF has only existed since January of this year, while the IAU Gold ETF was launched in 2005, 19 years ago,” eToro detailed.
