Bitcoin to the Moon! The Crypto Will Soon Blasting Off to $100K by Year-End, Analysts Predict
2min read Trump's victory has thoroughly ignited the crypto world, with Bitcoin breaking $81,000 and Ethereum's market cap surpassing that of Bank of America. Analysts suggest that this surge might just be the beginning and could continue until Trump takes office.
Bitcoin surged over 6% on Sunday and continued to climb above $81,000 in early Asian trading on Monday, hitting a new all-time high. Ethereum, the second-largest cryptocurrency by market cap, broke $3,200, with a market cap reaching approximately $383 billion, surpassing Bank of America's market value.
Since Trump's victory, Bitcoin has risen by more than $10,000, outperforming the returns brought by U.S. stocks and gold over the same period. Year-to-date, driven by strong demand for spot ETFs and expectations of Fed rate cuts, Bitcoin has surged over 90%.
In the days following the U.S. election, Bitcoin ETFs witnessed large-scale capital inflows again. BlackRock's iShares Bitcoin Trust ETF (IBIT) set a record with nearly $1.4 billion in single-day inflows last Thursday.
Trump has made supporting cryptocurrencies a key part of his campaign, pledging to protect and boost the U.S. crypto industry and end the SEC's crackdown on cryptocurrencies. His decisive victory is seen as the most favorable outcome for crypto assets.
Standard Chartered believes the Trump administration will deliver on its promises, and any changes in crypto policy are likely to be pushed early to capitalize on Republican control of Congress before the November 2026 midterm elections.
The bank projects that Bitcoin will continue to rise and hit $100,000 by year-end, and expects the total market cap of the cryptocurrency market to grow from the current $2.5 trillion to $10 trillion by the end of 2026.
They suggest that Trump may introduce a series of policies to reshape the U.S. crypto industry, specifically in the following four aspects:
1. Repealing SAB 121: The SEC's guidance on digital assets, SAB 121, requires entities acting as custodians of crypto assets to list these assets on their balance sheets and create equivalent liabilities. Repealing SAB 121 is expected to pave the way for further institutional adoption of digital assets.
2. Passing the Stablecoin Act: Stablecoins are becoming an important use case for digital assets in the real world. Over the past 12 months, three significant bills aimed at establishing a regulatory framework for banks to issue stablecoins have been submitted to the House of Representatives. Under the Trump administration, progress on these bills is expected by early 2025.
3. Replacing the current SEC Chair: Under the leadership of current Chair Gary Gensler, the SEC has taken a firm stance on digital assets. Trump has explicitly stated during his campaign that he will replace Gensler.
4. Possibility of a Bitcoin Reserve Fund: Although this is a low-probability event, Trump mentioned in July that he would retain the government-held Bitcoin (210,000 BTC at the time). This move could significantly impact the prices of this small asset class.
Given the current momentum post-election, Standard Chartered analyst Geoffrey Kendrick expects $90,000 to be Bitcoin's next target, likely to be easily achieved by November 29, followed by $100,000 before December 27.
Zerohedge predicts that Bitcoin could reach a peak of $125,000 by year-end, and if it does not achieve this by December 31, it is likely to do so by January 20. This is based on the precedent set in the aftermath of the 2016 election, where many Trump trades peaked during the January 20 inauguration ceremony. Zerohedge also notes another key date to watch — December 10, when Microsoft's board will vote on whether to invest in Bitcoin.
In the derivatives markets, particularly futures and options, bets on further Bitcoin rises have surged.
The CME derivatives exchange offers Bitcoin futures contracts, a popular way for U.S. institutions to speculate on Bitcoin's future price. According to Vetle Lunde, Head of Research at K33, as of Friday, the premiums for Ethereum and Bitcoin CME futures averaged 14.5% and 14%, respectively. Before the election, these premiums were around 7% and have been below