Peter Smith
Bitcoin (BTC) hit a new high near $90,000, driven by positive post-election sentiment and pro-crypto regulatory expectations under Trump. Analysts set $100,000 as the next key target.
Bitcoin Hits Record High as Pro-Crypto Sentiment Grows
Bitcoin (BTC) reached an all-time high of $89,995 on Monday, surging close to $90,000 before easing to around $88,000 on Tuesday, according to CoinDesk. This rally comes amid pro-crypto policies expected under President-elect Donald Trump, who has expressed support for digital assets. This could potentially spur a friendlier regulatory landscape for Bitcoin ETFs and crypto exchanges like Coinbase (COIN) and Robinhood (HOOD). Analysts suggest the new administration could propel further gains in the crypto sector.
In a note shared Monday, Bernstein analysts urged investors to increase their exposure to the crypto market. "Don't fight this," advised Gautam Chhugani's team, encouraging buyers to embrace the ongoing bull market. Analysts also set a long-term Bitcoin price target of $200,000 by 2025, viewing the current trend as favorable for the next 12 months. Trump's campaign promise to replace SEC Chair Gary Gensler with a pro-crypto appointee further supports this bullish outlook.
Bitcoin Rally Spurs ETF Inflows
Spot Bitcoin ETFs have seen significant inflows during election week, with $1.63 billion flowing into the funds. BlackRock’s iShares Bitcoin Trust ETF (IBIT) led with $1.25 billion in inflows, adding another $756.5 million on Monday. Since launching in January, these ETFs have amassed $26.97 billion in total inflows, although the Grayscale Bitcoin Trust (GBTC) experienced outflows totaling $20.1 billion. IBIT remains the top performer, reaching $28.14 billion in inflows for 2024.
Anthony Yeung of CoinCover warns new investors to stay cautious, highlighting Bitcoin’s volatility and the increasing risk of malicious activities. Yeung notes a strong correlation between new entrants and rising cyber threats, advising beginners to educate themselves on potential risks as they enter the bull market.
Bitcoin-Related Stocks and Miners Surge
Coinbase (COIN) saw a 48% weekly gain, closing at 270.74, with its stock up over 83% this year. Robinhood (HOOD), another crypto-exposed stock, climbed 27.4% last week, hitting a three-year high of 30.54. Bitcoin mining stocks also experienced gains; Bit Digital (BTBT) jumped 26.3% Monday, while MARA Holdings (MARA) rose 30%, both bouncing back after last week’s growth.
Bitcoin’s recent highs surpassed the March record of $73,798, with BTC showing a remarkable 109% increase this year alone.
Peter Smith
