According to crypto investors who spoke to MarketWatch, Bitcoin’s value will likely reach $100,000 per coin thanks to the recent rise in price after Donald Trump won the election in the U.S. However, the coin’s future beyond this important milestone is still unknown.
Bitcoin’s value went up sharply right after the U.S. elections. This was mostly due to people’s optimism about Trump’s pro-crypto policy promises on the campaign trail, such as his plans to build a national strategic bitcoin reserve.
After November 5, a lot of money poured into crypto exchange traded funds (ETFs). This was partly because people were excited about Trump’s plans to replace Gary Gensler as chair of the U.S. Securities and Exchange Commission (SEC) with a crypto-friendly choice.
Bohan Jiang, who is in charge of over-the-counter options dealing at Afra, a digital assets broker, said that hedge funds and crypto traders were mostly being safe by making sure they were “well hedged for a Harris win” before the election.
Jiang said that the sudden rise in bitcoin’s value after the vote was caused by traders moving their portfolios to go long on crypto assets. This caused investors to unwind their hedges and buy bitcoin at spot prices.
“It was pretty much the best outcome for crypto; it was a red sweep.” That was seen as very positive for crypto, especially when it came to making regulations clear, Jiang said.
Mitchell Dong, founder and managing member of crypto hedge fund Pythagoras Investments, said that the recent rally was “enhanced” by the fact that bitcoin ETFs were launched on U.S. markets in January 2024, which let a lot more big investors put money into crypto markets.
Dong believes that the bitcoin bull market may be set to continue as Trump moves forward with his plans to implement his crypto-friendly policies. One way he plans to do this is by making regulations clearer for the U.S. crypto industry.
Dong said, “In terms of outlook, I think it’s going to continue to be a bull market as Trump tries to keep his campaign promises.” He also said that clearer rules for bitcoin could give it a big boost.
However, the head of the hedge fund said that investors should expect the crypto markets to be very volatile no matter what.
Jiang said that clearer rules about regulations could be made available in the next few months. He said that this was likely to lead to “massive inflows of capital into the digital asset ecosystem” from big investors.
Looking ahead, Jiang warned that the bitcoin markets could still be shook by a number of shocks, such as those relating to macroeconomics, geopolitics, and even the performance of MicroStrategy Incorporated, a big bitcoin investor that has helped fuel the bitcoin surge.
MicroStrategy MSTR 8.67%, which now has one of the biggest bitcoin holdings in the world, has helped fuel the recent crypto gain by using the rise in the price of its stock to buy bitcoin. This is called a “feedback loop,” and it has been going on for a while now. Jiang talked about
The technology company that is listed on the Nasdaq has more than $30 billion worth of bitcoin. They started spending a lot in bitcoin in 2020, when the price of one bitcoin was less than $12,000.
MicroStrategy has bought bitcoin over the past four years using a variety of financing methods, such as selling shares and taking on more debt. This approach has helped the company’s share price rise by more than 3,000% since its first big bitcoin investment in August 2020.
Jiang thinks that the situation has caused a “reflexive rally” in which rising share prices in MicroStrategy have caused bitcoin prices to rise, which has allowed the U.S. tech company to buy more of the cryptocurrency.
MicroStrategy is now planning to raise another $42 billion in new capital to buy bitcoin over the next three years, according to a recent announcement from the company this week.
Any reversal of the dynamic that has helped fuel MicroStrategy’s rise would have a major impact on bitcoin’s value in removing a key provider of liquidity from the market that has helped push up the price of the cryptocurrency, Jiang said.
People in the market now think that bitcoin will hit the socially important price of $100,000 per coin. This would continue the rally that has seen the price of bitcoin BTCUSD 1.04% rise 46% in the last month. Jiang said, “The market wants it; it’s a very big psychological thing.”
But Jiang warned that once bitcoin hits $100,000, there is still a lot of doubt about where it will go from here. “Price goals by 2026 have been given as high as $200,000 and as low as $120,000.” This is not at all what Afra thinks, he said.
Dong also said, “More drama and more adventure is what we expect.” He said that crypto markets have always had to deal with a lot of volatility. “Every day is an adventure, every week is a new drama, and every month is like a big change,” he said.
