Bitcoin surged 30% after Trump's election! Can it really reach $100,000?

On Wednesday, Bitcoin's rally paused as traders assessed the impact of President-elect Trump's verbal support for cryptocurrencies on the remaining market. According to data compiled by Bloomberg, this digital asset rose about 30% after Trump won the election on November 5, reaching a record high of $89,968 on Tuesday, with Bitcoin prices on some exchanges even surpassing $90,000. On Wednesday, the token retreated to around $86,000. Trump promised to create a friendly regulatory framework for cryptocurrencies, establish a strategic Bitcoin reserve, and make the U.S. a global hub for the industry. Trump had once been skeptical of cryptocurrencies, but he changed his stance after digital asset companies invested heavily during the campaign to promote their interests. His position has sparked optimism in the cryptocurrency space, pushing market values to historic peaks. However, the question remains whether Trump and his Republican lawmakers will prioritize more important matters like the U.S. economy, thereby delaying digital asset legislation to the back of the priority list. Tony Sycamore, a market analyst at IG Australia, wrote in a report, “While we do not rule out the possibility of further gains, a lot of good news has already been priced in.” One of the strongest performers in the cryptocurrency market recently has been Dogecoin, a token promoted by billionaire Elon Musk and favored by some. This Shiba Inu-themed token, also known as DOGE, has risen about 80% in the past five days. Before the election, Musk hinted that he could lead a government efficiency department, which also has the acronym DOGE, seemingly paying tribute to this cryptocurrency. Trump announced the establishment of the department on Tuesday to reduce wasteful spending, stating that Musk would serve as co-head of the department. Dogecoin briefly surged after the announcement but then followed Bitcoin's decline. In global markets, attention is turning to the upcoming U.S. inflation data, which could influence views on the Federal Reserve's further rate-cutting space. U.S. Treasury yields and the dollar are climbing, indicating that investors expect Trump's plans for trade tariffs and tax cuts to bring inflationary pressures. Against this backdrop, U.S. stocks fell as relatively high borrowing costs could become a barrier for risk investments, including cryptocurrencies. Noelle Acheson, author of the "Crypto Is Macro Now" newsletter, stated, “The relatively mild leverage in the crypto market has reduced the risk of a significant pullback; a breather in the market is welcome, but it is likely to be short-lived. Favorable factors remain strong.” According to Deribit data, bullish options bets are concentrated on Bitcoin reaching $100,000. At the beginning of this week, inflows into U.S. Bitcoin exchange-traded funds exceeded $1 billion