BTC is approaching $90,000, and the $100,000 mark is within reach

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ChainCatcher
2 days ago
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Author: BitpushNews

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

On Monday, Bitcoin surged ahead, rising an astonishing over 10% to firmly stand above $89,000, reaching a high of $89,575.96. Ethereum rose 6.4%, exceeding $3,300, and Solana (SOL) rose 6.7%, breaking through $220. Investor enthusiasm has reached unprecedented heights, with Bitpu data showing that the total cryptocurrency market capitalization has surpassed $3.1 trillion for the first time since the November 2021 (previous bull market peak) high.

In the US stock market, cryptocurrency concept stocks saw a big rally, with Canaan (CAN.O) up 41%, MicroStrategy (MSTR.O) up 25% to a record high closing price of $340, the company announced on Monday that it had added 27,200 more Bit, bringing its total holdings to 279,420 Bit, valued at about $24.5 billion at current prices. Coinbase (COIN.O) rose 19%, and Robinhood (HOOD) rose over 7%, up more than 35% in the past five days. Bloomberg previously reported that Robinhood's legal chief Dan Gallagher is one of the candidates being considered by the Trump team to lead the US SEC.

ETF trading volume continues to hit new highs

Since the election, the inflow of funds into spot cryptocurrency ETFs has continued to rise.

As Bit surged above $88,000 for the first time, BlackRock's spot Bit ETF also set a new daily trading volume record, with Bloomberg data showing that BlackRock's spot Bit ETF had a daily trading volume of $4.5 billion.

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

The strategy team stated: "Part of the reason is the expectation that the Trump administration will be more crypto-friendly, and investors hope this will translate into greater regulatory clarity in the US. Specifically, the net inflows into Bit and ETH ETFs in the two days after the election were $2.01 billion and $132 million respectively. We continue to view ETF fund inflows as a key driver of Bit's price appreciation."

Trump seeks crypto-friendly team, regulatory storm may subside

John Reed Stark, former head of the SEC's Internet Enforcement Office, recently revealed that with Trump's victory in the US presidential election, the SEC's harsh crackdown on cryptocurrencies may be about to change.

Stark predicted on Twitter Space: "The SEC is unlikely to launch major fraud lawsuits against the crypto industry in the coming years." This statement undoubtedly injected a shot of adrenaline into the crypto industry, which has been plagued by regulatory troubles.

Stark believes that with Trump's election, the over-regulation of cryptocurrencies will become a thing of the past, and the new SEC chairman will be more crypto-friendly. He also predicted that Gensler may voluntarily resign before Trump's inauguration to avoid the embarrassment of being fired.

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

In general, with the Republicans set to take control of the House after already controlling the Senate, the crypto industry will face a more friendly regulatory environment. However, the specific policy direction will need to wait until the new SEC chairman takes office.

Fundstrat's digital asset strategy head Sean Farrell said in an X post on Monday: "The market may seem bubbly to some, but please understand that we are simply transitioning overnight from an objectively oppressive regulatory regime to an overly friendly one. The charts fully justify the step-by-step returns of BTC."

Bit price could reach $125,000 by the end of the year

Legendary trader Peter Brandt says Bit could reach $125,000 before New Year's Eve.

Brandt pointed out on the X platform that Bit often repeats its strong market performance patterns during price rallies. He analyzed Bit's current breakout of its all-time high and, based on Bayesian probability theory, predicted its price could reach $125,000.

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

Based on Bayes' theorem, Brandt analyzed Bit's price trend in the first quarter of 2024 and believes it could replicate this pattern in the fourth quarter of 2024, reaching a high of $125,000 before 2024 New Year's Eve.

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

As of the time of writing, on the Polymarket market that successfully predicted Trump's victory, the probability of "Bit breaking through $100,000 by the end of the year" has risen to 56%, and with Bit currently at $89,000, it is only 11% away from the $100,000 target.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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