Bitcoin has reached a new all-time high of $75,000 following Donald Trump’s victory in the 2024 US presidential election. This surge in price reflects a sense of optimism in the market and anticipation of potential policy changes that could be favorable for digital assets.
According to a report by digital asset custodian Copper.co, there is a belief that Bitcoin’s upward momentum could continue into the new year. Fadi Aboualfa, Head of Research at Copper.co, stated,
“We have analyzed the ETF accumulation trend and potential price ranges. It is quite possible that Bitcoin could reach $100,000 by the time the 47th US President is inaugurated on January 20, with ETFs holding around 1.1 million Bitcoins.”
This forecast from Copper.co is based on historical ETF accumulation patterns and current market data. The firm had previously predicted that ETFs would hold just under one million Bitcoin by the US elections, a prediction that has been largely accurate based on current holdings. The increase in ETF holdings indicates a growing interest from institutional investors in using Bitcoin as a hedge against economic uncertainties.
On election night, trading platforms saw significant activity. Robinhood reported its highest-ever overnight equities session since launching its 24-Hour Market, with an 11-fold increase in overnight trading volume from 8 P.M. to 4 A.M. Popular symbols traded included COIN, DJT, IBIT, MSTR, NVDA, QQQ, SPY, TSLA, TSLL, and TQQQ. In the crypto sector, Bitcoin, Dogecoin, and Ethereum were among the most actively traded assets.
Market analysts are hopeful that Trump’s victory will lead to fiscal policies that support crypto adoption and investment. During his previous term, Trump oversaw two all-time high cycles for Bitcoin, which occurred as the dollar weakened. The current stronger dollar environment presents a different scenario, but investor confidence remains high.
Despite the positive outlook for Bitcoin, Copper.co sees Ethereum facing challenges ahead. Betting markets give Ethereum a 13% chance of reaching a new all-time high this year, up from 8% before the election. While Ethereum’s supply growth this year stands at 89,000 ETH compared to the 5.7 million coins moved into staking, the lackluster interest in ETFs has dampened trader enthusiasm even as investors remain largely unfazed.