Cryptocurrency

Bitcoin Price Predictions Before Trump’s Inauguration Explained

AifrontierDecember 26, 2024February 6, 202506 mins

Market Optimism and Potential Policy Shifts Favorable to Digital Assets

The recent presidential election in the United States has sent shockwaves through the cryptocurrency market, with Bitcoin (BTC) hitting a record high of $76,990 on Bitstamp just days after Donald Trump emerged victorious. Analysts predict that further price increases are likely, as market participants anticipate a more crypto-friendly business environment under Trump’s presidency.

Market Dominance and Open Interest Suggest High Volatility

According to Ryan Lee, chief analyst at Bitget Research, the high open interest (OI) in futures markets along with the increasing market dominance of stablecoins suggest traders are positioning themselves for high volatility in the price of Bitcoin. "With the market capitalization of stablecoins hitting a new high and fluctuating around $160 billion, there is room for significant leverage in the market, potentially pushing BTC to reach $100,000 within the next three months," Lee said.

Historical Trends Suggest a $100K Target

Similar predictions were made in a Nov. 6 report by digital asset custodian Copper.co., which said Bitcoin’s upward trajectory may continue into the new year with a $100,000 target. The prediction was based on historical spot Bitcoin ETF accumulation trends and current market data.

"We have back-tested the ETF accumulation trend against potential price ranges," said Fadi Aboualfa, head of research at Copper.co. "Spot Bitcoin accumulation based on historical trends seen in 2024 suggests that a $100,000 Bitcoin is quite possible by the time the 47th US President heads to the Capitol for inauguration on Jan. 20."

ETFs Hold Approximately 1.1 Million Bitcoin

Aboualfa added that ETFs hold approximately 1.1 million Bitcoin, which could contribute to further price increases. "A $100,000 Bitcoin is quite possible by the time the 47th US President heads to the Capitol for inauguration on Jan. 20," he said.

Trump’s Second Term Viewed as Bullish for Cryptocurrency Space

The expectation of clearer crypto regulations under Trump’s presidency has boosted market optimism and anticipation of potential policy shifts favorable to digital assets. Many participants expect that a more crypto-friendly environment will lead to increased adoption and growth in the space.

Inflation May Remain Above 3.5%

However, Lee noted that Trump’s policies may mean inflation in the world’s largest economy will remain above 3.5% in the "medium to long term." This could have implications for the price of Bitcoin, which has been seen as a potential hedge against inflation.

Potential Parabolic Move Toward $200K Zone

Technical analyst Gert van Lagen said that BTC’s price surged beyond the key reaccumulation phase of the ‘descending broadening wedge,’ indicating a potential parabolic move toward the $200,000 zone. "BTC has broken out of the reaccumulation ‘Descending Broadening Wedge.’ Ready to parabolically hit the $200k+ zone," he said.

$90,000-$100,000 Target with Ultimate Goal of Reaching $200,000

Lagen’s chart reveals that the reaccumulation phase seems to be nearing its end as BTC is back in price discovery. The next projected target is between $90,000 and $100,000, with the ultimate goal of reaching $200,000 by around May 2025.

Crypto YouTuber Lark Davis Bullish on Next 90 Days

Crypto YouTuber Lark Davis was bullish on the next 90 days. "We’re most likely going to see a $100,000 Bitcoin in the next 3 months," he said in response to BTC’s new all-time highs near $77,000.

Every Investment and Trading Move Involves Risk

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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