Bitcoin zoomed past the $100,000 mark for the first time on Thursday, fuelled by growing optimism over a crypto-friendly regime under US President-elect Donald Trump and strong institutional inflows through Bitcoin exchange-traded funds (ETFs).
The world’s largest cryptocurrency surged 6% to an all-time high of $103,800, following Trump’s nomination of pro-crypto advocate Paul Atkins to head the Securities and Exchange Commission. It was last trading at around $102,850.
Trump’s election victory has pered up investor interest in the crypto market, with Bitcoin’s price soaring 50% since his win, exactly a month ago. So far this year, Bitcoin has gained almost 150% buoyed by institutional confidence, the launch of Bitcoin ETFs and increasing acceptance of digital assets, experts said.
Analysts predict the rally could push Bitcoin to $120,000 by end of the year and potentially surpass $150,000 in 2025. Global investment firm Bernstein has projected Bitcoin at $200,000 by 2025 and $1 million by 2033.
“The re-election of Trump has reinvigorated enthusiasm within the crypto community, supported by a significant uptick in institutional investments,” said Balaji Srihari, business head at CoinSwitch. Based on historical post-halving trends, Bitcoin could reach a peak of around $150,000 in 2025, with the April 2024 halving leading to a rally of 300-400%, he said.
Trump’s pledge to make the US the “crypto capital of the planet” and establish a strategic Bitcoin reserve has further fuelled investor optimism, which is only expected to rise as he takes office in January. Market participants expect this pro-crypto stance could drive global adoption, with countries like China lifting restrictions on personal crypto ownership, and Brazil and Russia exploring Bitcoin for reserves.
“Key developments, including Elon Musk heading the newly-established department of government efficiency, plans for a dedicated White House crypto policy role and Trump’s appointment of Atkins as SEC chair, have fuelled this remarkable rally towards this mark,” said Edul Patel, CEO and co-founder of Mudrex.
“With Trump’s pro-crypto agenda and Atkins’ leadership, the market is bound for friendlier reforms and wider adoption, setting Bitcoin on track to reach $120,000 in the coming weeks,” he said.
Other cryptocurrencies are also riding the wave. XRP, Binance Coin and Solana hit lifetime highs as investors flock to digital assets. Meanwhile, the success of Bitcoin ETFs has simplified access for institutional investors, with BlackRock’s spot BTC ETF now managing over 500,000 BTC, worth $48 billion.
“The next year looks incredibly promising for crypto,” said Vishal Sacheendran, head of Regional Markets at Binance. “The industry is likely to see enhanced security measures, greater transparency, and improved accessibility for retail and institutional investors. Discussions around a US Strategic Bitcoin Reserve and corporate treasury integration signal a shift toward mainstream adoption.”
Rahul Pagidipati, CEO at cryptocurrency exchange ZebPay, said, “Bitcoin is now effectively one of the top 10 most valued assets in the world, ranking above all commodities except gold and higher than most companies. The crypto market’s total capitalisation has also crossed the $3.5-trillion mark, demonstrating the scale of interest and widespread adoption in the space.”
