BTC is approaching 90,000 USD, with the 100,000 mark within reach

Author: BitpushNews

The trading frenzy triggered by Trump's victory continues to heat up.

On Monday, Bitcoin surged impressively by over 10%, strongly standing above $89,000, reaching a high of $89,575.96. Ethereum rose by 6.4%, surpassing $3,300, while Solana (SOL) increased by 6.7%, breaking through $220. Investor enthusiasm is at an all-time high, with Bitpush data showing that the total market capitalization of cryptocurrencies has surpassed $3.1 trillion for the first time since November 2021 (the peak of the last bull market).

In the U.S. stock market, cryptocurrency-related stocks surged that day, with Canaan Inc. (CAN.O) up 41%, MicroStrategy (MSTR.O) rising 25%, closing at a historic high of $340. The company announced on Monday that it had acquired an additional 27,200 Bitcoins, bringing its total holdings to 279,420 Bitcoins, valued at approximately $24.5 billion at current prices. Coinbase (COIN.O) rose 19%, and Robinhood (HOOD) shares increased by over 7%, with a gain of over 35% in five days. Earlier, Bloomberg reported that Robinhood's legal chief Dan Gallagher is one of the candidates considered by Trump's team to lead the SEC.

ETF Trading Volume Hits New Highs

Since the election, the inflow of funds into spot cryptocurrency ETFs has been climbing steadily.

As Bitcoin first soared above $88,000, BlackRock's spot Bitcoin ETF also set a new daily trading volume record, with Bloomberg data showing that the daily trading volume of BlackRock's spot Bitcoin ETF reached $4.5 billion.

Citi strategists emphasized in a research report that cryptocurrencies are "one of the few Trump trades that have not retraced."

The strategist team stated: "Part of the reason is the expectation that the Trump administration will take a friendly stance towards cryptocurrencies, and investors hope this will translate into regulatory clarity in the U.S. Specifically, within two days after the election, the net inflows for BTC and ETH ETFs were $2.01 billion and $132 million, respectively. We continue to view ETF fund inflows as a major driver of Bitcoin's price increase."

Trump Seeks Crypto-Friendly Team, Regulatory Storm May Calm

John Reed Stark, former head of the SEC's Internet Enforcement Office, recently revealed that with Trump's victory in the U.S. presidential election, the SEC's stringent regulation of cryptocurrencies may see a turnaround.

Stark predicted in a Twitter Space: "In the coming years, the SEC is unlikely to initiate large-scale fraud lawsuits against the cryptocurrency industry." This statement undoubtedly injected a shot of adrenaline into the heavily regulated crypto industry.

Stark believes that with Trump's election, excessive regulation of cryptocurrencies will become a thing of the past, and the new SEC chair will be more friendly. He also predicted that Gensler might proactively resign before Trump's inauguration to avoid the embarrassment of being fired.

Coinbase CEO Brian Armstrong also believes this will be "the most pro-crypto Congress in history."

Overall, as the Republican Party is set to gain control of the House after taking control of the Senate, the crypto industry will welcome a more favorable regulatory environment. However, the specific policy direction will need to wait until the new SEC chair takes office to be finalized.

Fundstrat's head of digital asset strategy, Sean Farrell, stated in a post on X on Monday: "The market may seem to some like there is a bubble, but please understand that we are simply transitioning overnight from an objectively oppressive regulatory regime to an overly friendly regulatory regime. The charts have every reason to justify BTC's stair-step returns."

Bitcoin Price Could Reach $125,000 by Year-End

Legendary trader Peter Brandt stated that Bitcoin could reach $125,000 before New Year's Eve.

Brandt pointed out on the X platform that Bitcoin tends to repeat its strong market performance pattern when prices rise. He analyzed Bitcoin's current breakout above its historical high and predicted its price could reach $125,000 based on Bayesian probability theory.

In simple terms, Bayesian probability (also known as Bayes' theorem) is a method for calculating the probability of future events based on existing data. For traders, it can help them set price targets by comparing the performance of assets in similar past situations, addressing uncertain price fluctuations.

Brandt analyzed Bitcoin's price trend for the first quarter of 2024 based on Bayes' theorem, believing it could replicate this pattern in the fourth quarter of 2024 and reach a high of $125,000 before New Year's Eve 2024.

Another trader, Titan of Crypto, predicted that Bitcoin's bullish triangle target price is $158,000. He believes that the appearance of a golden cross on the weekly chart is a key factor for the continuation of the bullish trend and pointed out that $100,000 is the first target price for the second wave of the bull market in 2024.

As of the time of publication, on the Polymarket platform, which successfully predicted Trump's victory, users betting on "Bitcoin breaking $100,000 by year-end" have seen the odds rise to 56%. Based on the price of $89,000, BTC is only 11% away from the $100,000 target.