Synopsis
Bitcoin surged nearly 50% in a month after Donald Trump’s reelection, reaching $99,655 before profit booking pulled it to $90,000. Global crypto adoption grows, with China lifting bans, Morocco introducing regulations, and U.S. policies boosting optimism.
Bitcoin has seen a dream run over the past month since the reelection of Donald Trump as the 47th US President. From around $67,000 on the day of the election to a lifetime of $99,655, Bitcoin has increased its value by close to 50% in just a month. This rally also brought a staggering $6.2 billion net inflow into Bitcoin ETFs over the month.
While BTC attempted to touch the milestone last week, we saw bears take control, leading to some profitbooking pulling down BTC’s price by around 9%. After testing the key support point of $90,000 – Bitcoin is all set to re-attempt the six-figure mark. Let’s deep dive into what the milestone could result in and how BTC at $100k impacts the global crypto market in the short term and the long term.
The Ripple Effect of America’s Vision
As Bitcoin inches closer to the $100,000 mark, its growing prominence is pushing countries to recognize its potential as a key to the emerging digital economy. Right when BTC was nearing $100k, China legalised crypto cryptocurrency after years of enforcing a stringent ban on the asset. Following China, Morocco too is all set to bring new regulations to crypto after the ban in 2017. Hong Kong on the other hand is planning for tax exemptions on crypto gains for private equity funds, hedge funds and high-net-worth investment vehicles in efforts to take crypto mainstream from the institution’s end.
Crypto Tracker
TOP COIN SETSNFT & Metaverse Tracker20.21% BuyDeFi Tracker9.77% BuyBTC 50 :: ETH 502.79% BuyWeb3 Tracker2.38% BuySmart Contract Tracker2.35% BuyTOP COINS (₹) XRP160 (20.82%)BuyEthereum309,747 (2.18%)BuyBitcoin8,188,603 (0.44%)BuySolana20,512 (0.35%)BuyTether85 (0.08%)Buy
In the US, Trump’s vision to create a “Strategic Bitcoin Reserve” has further boosted the optimism of the crypto community contributing to the rally. This rally in turn pushed countries like Brazil to set up a Bitcoin reserve for global risk protection of the nation’s financial assets, diversify reserves, and promote blockchain technology integration across the public and private sectors. Over the next few months, more countries will follow suit realising the resilience of crypto against other asset classes and the confidence of nations across the world in crypto.
Did you Know?
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Trump’s Crypto-Friendly Moves Fuel Market Optimism
Since Trump’s victory in the US Presidential Elections, there have been some major developments that fueled the Bitcoin rally. The creation of the Department of Government Efficiency (DOGE) led by Elon Musk and Vivek Ramaswamy, Trump’s entry into the crypto payments space, and reports of former CFTC Chair Chris Giancarlo being considered as the first ‘Crypto Czar’ to oversee national crypto policies from the White House and many others have strengthened the market sentiment, pushing BTC to new ATHs.
Additionally, reports of Trump considering Paul Atkins as the lead pick to head the SEC have also added to the positivity and more such appointments during Trump’s 2.0 administration would extend the rally further taking BTC beyond the $100k mark.
Bitcoin Fueling the Altcoin Rally
While Bitcoin is having its dream run, it also led to increased buying interest in other coins such as Ethereum, Solana, XRP and many others. Over the past few weeks, the altcoin season index has also been getting stronger at 58 indicating a strong momentum in altcoins. This momentum has also been reflected in their price action with major tokens going up as much as 30% in the past week in anticipation of BTC at $100K.
Conclusion
During a bull run, it is quite common to see profit-booking and some correction allowing the asset to gain further momentum. A similar pattern emerged as BTC approached the $100,000 mark. However, with Bitcoin regaining its upward trajectory, it seems only a matter of time before it crosses this eagerly anticipated milestone. As the market matures, these fluctuations are expected to stabilize, paving the way for sustained growth beyond $100,000.
The author Edul Patel is CEO and co-founder of Mudrex. Views are own.
