- Bitcoin has skyrocketed since Donald Trump’s election wion.
- The cryptocurrency rushed past the $93,000 mark last week.
- Now, analysts ponder when it will break the $100,000 barrier.
What are the odds of Bitcoin breaking the $100,000 barrier before the end of the year?
Investors have asked themselves that question since Donald Trump’s election victory catapulted the cryptocurrency’s price to a $93,000 record. It’s up almost 120% this year.
A $4.5 million prediction market on betting site Polymarket gives Bitcoin a 64% chance of hitting $100,000 before 2024.
However, market watchers expect that’s just the beginning — some say the price may hit over $1 million over the next few years.
“We are entering the Golden Age of Crypto,” Matt Hougan, Chief Investment Officer at crypto ETF manager Bitwise, wrote in a blog post.
Trump’s victory isn’t the only reason why market watchers are bullish.
Donald Trump
Crypto loves Trump.
The inbound White House resident endeared himself to the industry on the campaign trail by pledging to halt the Biden era’s crackdown on digital assets.
Among other things, Trump promised to fire Gary Gensler, the chair of the Securities and Exchange Commission who has fired off lawsuits against industry players; introduce industry-friendly regulations; and create a national Bitcoin reserve.
Market watchers expect Trump to deliver on those promises.
Analysts at research firm Bernstein said in a Monday note that they expect Bitcoin to break the $100,000 soon.
UK bank Standard Chartered’s analysts are even more bullish. They predict Trump’s win will drive the price to $125,000 before the end of the year.
Both companies’ analysts predict that Bitcoin’s price will hit $200,000 before the end of 2025.
The play for $500,000
Hougan was even more bullish. Iin a recent note, he argued that the price could hit $500,000.
While he didn’t provide a timeline, he argued that Bitcoin is still early in its journey to become a mature store-of-value asset akin to gold.
That process started in full in 2024 with the launch of spot Bitcoin exchange-traded funds, and as more institutions tapped into crypto, but it’s just the start.
“Until Bitcoin is as boring as gold — widely held by central banks and institutions alike — it’s by definition still early,” Hougan said.
Bitcoin to $1m
Arthur Hayes, co-founder of crypto exchange BitMEX, said Trump’s plans to revamp American industry will catapult Bitcoin’s price past $1 million over the next few years — a more than tenfold increase.
He argued in a new blog post that those plans will require the expansion of US’ bank credit as American industries need government subsidies to upscale their capacity.
Those loans will likely erode the equity reserves of US lenders, and force the Federal Reserve to intervene, which in turn could weaken the dollar, Hayes said.
Cryptocurrencies will benefit from the inevitable quantitative easing that will arise if his prediction comes true, which will send Bitcoin past the seven-figure mark, Hayes said.
Crypto market movers
- Bitcoin is down 1% over the past 24 hours to about $89,696.
- Ethereum is also down some 1% over the same time period to $3,075.
What we’re reading
- What Trump’s frontrunners for Treasury Secretary say about crypto ― DL News
- BONKDAO Burns $4 Million Worth of Tokens Ahead of Quest to Cut Supply by 1 Trillion Tokens ― Unchained
- What you missed this week ― Milk Road
- First app to hit $1B in revenue? — Milk Road
- Shorts piling into Bitcoin mining stocks risk $4.6bn squeeze — DL News
Eric Johansson is DL News’ News Editor. Got a tip? Email at eric@dlnews.com.
