Will bitcoin touch $100,000?

Support of pro-crypto candidates in US Congress combined with favourable regulatory changes could spike Bitcoin price

Bitcoin surged toward $90,000 on Tuesday, riding a wave of optimism following Donald Trump’s election as US president, with many anticipating his administration will be more supportive of cryptocurrency.

This rally has sparked widespread optimism in the cryptocurrency market, and some analysts now predicting that Bitcoin could soon cross the $100,000 mark.

But what’s driving this surge, and will it continue?

Pro-Crypto policies under Trump

Bitcoin's recent surge can largely be attributed to Donald Trump's election victory, which has raised expectations of a more crypto-friendly regulatory environment.

As a long-time supporter of digital assets, Trump has promised to make the US the "crypto capital of the world" and even suggested creating a national Bitcoin reserve.

The president-elect is reportedly preparing to appoint industry-friendly candidates to key government positions, while his top advisers are engaging with crypto executives to discuss potential changes to federal policy.

Adding to the bullish sentiment, Elon Musk—who endorsed Trump during his campaign—has voiced concerns about a potential "financial emergency" in the US, further reinforcing the need for alternative assets like Bitcoin. Musk has criticized excessive government spending, warning that it’s pushing America toward bankruptcy.

Since the election, Bitcoin has risen sharply, briefly reaching $89,637 in Asia, up more than 25% from November 5. This rally parallels a nearly 40% increase in Tesla's stock, reflecting investor confidence that Trump’s policies will benefit both crypto and tech industries.

Will Bitcoin reach $100,000?

Many analysts are now forecasting that Bitcoin could hit $100,000 in the near future.

Muhannad Al-Teneiji, founder of UAE-based Wealth Training Center, believes Bitcoin is on a clear path to achieving this milestone by mid-2025, citing the strong momentum in the market, growing institutional participation, and supportive macroeconomic factors.

The recent influx of capital into Bitcoin ETFs is a positive indicator, showing that institutional demand is building steadily.

Federal reserve’s rate cut

Another key factor contributing to Bitcoin’s price increase is the US Federal Reserve’s decision to cut interest rates by 25 basis points in November 2024.

This move signals an accommodative monetary policy, reducing the attractiveness of traditional investments and steering more capital toward alternative assets like Bitcoin.

Lower rates and the ongoing uncertainty in the global economy are prompting investors to hedge against inflation by turning to Bitcoin, a digital asset known for its scarcity and decentralized nature.

Institutional adoption and ETFs

Institutional interest in Bitcoin has surged this year, thanks in part to the approval of Bitcoin exchange-traded funds (ETFs).

These ETFs allow traditional investors to gain exposure to Bitcoin without directly owning the cryptocurrency. The influx of institutional money into Bitcoin has led to greater demand and price appreciation.

Market analysts point to these developments as crucial in driving the price surge, and with Bitcoin now regularly hitting new highs, the momentum seems to be building.

Crypto's growing market

Bitcoin’s rally has also had a knock-on effect on other cryptocurrencies, such as Ethereum, which recently surpassed $3,200.

As Bitcoin leads the charge, it boosts confidence in the broader cryptocurrency market, further fueling a cycle of price increases.

The rising interest in digital assets has been especially evident in regions like the UAE, where the crypto-friendly regulatory environment is encouraging both institutional and retail investors to increase their exposure to Bitcoin.