Bitcoin predicted to hit $100k by Inauguration Day amid record pre-market equities trading

The surge in Bitcoin to a new record high of $75,000 post Donald Trump’s victory in the 2024 US presidential election reflects a surge in market optimism and anticipation of favorable policy changes towards digital assets.

As per a report by digital asset custodian Copper.co, Bitcoin’s upward momentum is expected to continue into the upcoming year. Fadi Aboualfa, Head of Research at Copper.co, stated,

“We have analyzed the ETF accumulation trend against potential price ranges. A $100,000 Bitcoin seems achievable by the time the 47th US President takes office on January 20, with ETFs holding around 1.1 million Bitcoins.”

Copper.co’s forecast is based on past ETF accumulation patterns and current market data. The firm had previously predicted that ETFs would hold just under one million Bitcoin by the US elections, a forecast that aligns closely with the current holdings. The rise in ETF holdings signifies a growing institutional interest in Bitcoin as a hedge against economic uncertainties.

On election night, trading platforms witnessed significant activity. Robinhood recorded its highest equities overnight session ever since launching its 24-Hour Market, with an 11-fold increase in overnight notional volume from 8 PM to 4 AM. Over 400 million election contracts were traded, with top symbols being COIN, DJT, IBIT, MSTR, NVDA, QQQ, SPY, TSLA, TSLL, and TQQQ. In the crypto space, Bitcoin, Dogecoin, and Ethereum were among the most traded assets.

Analysts are optimistic that Trump’s win will lead to fiscal policies favorable to crypto adoption and investment. Trump oversaw two previous all-time high cycles for Bitcoin during his previous term, coinciding with a weakening dollar. Although the current stronger dollar scenario presents a different scenario, investor confidence remains high.

While Ethereum faces challenges, Copper.co notes that favorable supply trends are in its favor. Betting markets give Ethereum a 13% chance of reaching a new all-time high this year, up from 8% pre-election. Despite Ethereum’s year-to-date supply growth and significant coins moved into staking, lukewarm ETF interest has subdued trader sentiment even as investors remain largely unaffected.

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