Bitcoin’s new all-time high of $75,000 following Donald Trump’s victory in the 2024 US presidential election reflects increased market optimism and anticipation of potential policy shifts favorable to digital assets.
According to one report Bitcoin’s upward trajectory could continue into the new year, according to digital asset custodian Copper.co. Fadi Aboualfa, head of research at Copper.co, said:
“We retested the accumulation trend of ETFs against potential price ranges.
A $100,000 Bitcoin is entirely possible by the time the 47th US president heads to the Capitol for the inauguration on January 20, with ETFs holding around 1.1 million Bitcoins.”
Copper.co’s forecast is based on historical ETF accumulation trends and current market data. In October, the firm predicted that ETFs could own just under a million Bitcoin by the US election, a projection that closely matches current holdings. The increasing ETF holdings indicate growing institutional interest in Bitcoin as a hedge against economic uncertainty.
Supporting this prediction, trading platforms experienced significant activity on election night. Robinhood reported the largest overnight trading session ever since the launch of the 24-hour market, with an elevenfold increase in notional volume from 8:00 PM to 4:00 AM. The platform noted that more than 400 million election contracts were traded, with the top symbols being COIN, DJT, IBIT, MSTR, NVDA, QQQ, SPY, TSLA, TSLL and TQQQ. In the crypto sector, Bitcoin, Dogecoin and Ethereum were among the most traded assets.
Market analysts hope that Trump’s victory will influence fiscal policies that promote cryptocurrency adoption and investment. During his previous term, Trump oversaw two record highs for Bitcoin, gains that occurred amid a weakening dollar. The current stronger dollar environment offers a different landscape, but investor optimism remains high.
Outside of Bitcoin, Copper.co sees Ethereum continuing to face challenges despite favorable supply trends. Betting odds only give a 13% chance that Ethereum will hit a new all-time high this year, although this is up from 8% before the election. While Ethereum’s supply growth this year is 89,000 ETH, compared to the 5.7 million coins staked, the tepid appeal of ETFs has dampened trader sentiment, even as investors remain largely unmoved.