Bitcoin BTC/USD surged to a new all time high of $75,358 on Wednesday during European trading hours, with market experts projecting further gains up to $120,000 amid expectations of crypto-friendly policies under Donald Trump‘s presidency, according to multiple industry leaders.
What Happened: Donald Trump has won the 2024 U.S. presidential election, defeating Democratic contender Kamala Harris.
After a tightly contested race, Trump emerged as the victor, securing his return to the White House.
After peaking in early European trading, Bitcoin retraced slightly to $74,210, still up 6.5% for the day, according to CoinGecko data.
Ethereum ETH/USD, the second-largest cryptocurrency, also gained 8%, however, still down 46% from its all time high, last seen on Nov 10, 2021.
The broader market capitalization rose by 4.2% to $2.58 trillion on Wednesday, reflecting strong interest in digital assets amid shifting political and economic conditions.
The rally has spurred intense trading, with $560.76 million in liquidations over the past 24 hours, including $188.55 million in long positions and $372.37 million in short positions, CoinGlass data shows.
What Experts Think: In a note sent to Benzinga, Raj Karkara, COO of ZebPay, said Bitcoin's latest high marks a milestone in its maturity as an asset.
“Bitcoin reaching a new record high is a groundbreaking milestone that underscores the strength and maturity of the crypto market,” he said.
Karkara highlighted Bitcoin's increasing appeal among investors seeking a "mainstream store of value" and a tool for financial autonomy and wealth preservation.
Experts are closely watching the impact of the U.S. presidential election on market dynamics, with several anticipating a Trump victory could bolster the crypto industry by easing regulatory pressures.
Shunyet Jan, Head of Institution and Derivatives at Bybit, noted that a Trump win may lead to "greater acceptance and regulatory certainty for crypto in the U.S.," potentially shifting regulatory personnel to include more crypto-friendly voices.
"Institutions are closely watching these developments, as greater clarity on regulation would positively impact market stability and liquidity," Jan added.
Sumit Gupta, Co-founder of CoinDCX, linked Bitcoin's surge to the political climate, especially Trump's pro-crypto stance. "BTC has just reached a new all-time high…driven by U.S. election results and the prospect of a pro-crypto administration with Trump's lead," Gupta said.
In a note to Benzinga, he projected that, with these tailwinds, Bitcoin could aim for levels around $95,000 to $100,000, highlighting the potential for broader gains in a favorable regulatory environment.
Avinash Shekhar, Co-founder & CEO of Pi42, pointed to the growing confidence in Bitcoin as a hedge amid political uncertainties.
"Bitcoin's recent surge to a record high…is a strong indicator of the confidence investors have in its resilience," he said.
He noted that if the election results bring pro-crypto policies, it could unlock further institutional adoption, potentially driving Bitcoin even higher.
Also Read: First UK Pension Scheme Allocates 3% To Bitcoin
Isaac Joshua, CEO of Gems, a crypto launchpad, shared a similarly bullish outlook, suggesting that regulatory relief under a Trump administration could lead to rapid market expansion.
"Under Trump’s presidency, we could likely see immediate regulatory relief for the crypto industry, allowing for freer market expansion…potentially pushing Bitcoin above the $120,000 mark," Joshua said.
He emphasized that Trump's pro-business stance may encourage traditional financial institutions to adopt crypto services faster, driving significant capital flows into the sector.
Viram Shah, CEO of Vested Finance, provided additional context, explaining that a Trump win could bring inflationary pressures, prompting the Federal Reserve to maintain higher interest rates.
“A potential victory for Trump may lead to policies that encourage tax cuts and tariffs, which could increase inflationary pressures," Shah noted, highlighting the Fed's role in shaping investor sentiment.
In the medium to long term, many experts see institutional demand and regulatory clarity as essential drivers of crypto market expansion.
James Wo, CEO of Digital Finance Group, suggested a "strong post-election rally" supported by ETF inflows and increased investor confidence, with the possibility of periodic regulatory updates bolstering the market over the next year.
"We anticipate a strong post-election rally…with markets then focusing on potential policy developments around crypto," Wo commented, projecting a sustained bullish trend if inflation subsides and interest rates stabilize.
While sentiment remains largely optimistic, experts also urge caution.
Iossif Vodenitcharov, Head of Risk at Thalex, warned of potential volatility, noting that "a second Trump administration could immediately push for looser regulations on financial markets in general, potentially benefiting the crypto industry by allowing more innovation."
This could result in heightened short-term volatility, he added, as the market adjusts to any regulatory shifts.
Anthony Yeung, Global Head of Strategic Development at CoinCover, highlighted the need for balanced regulation, noting that prolonged delays could diminish the U.S.'s influence on global crypto standards.
"While President-elect Trump has claimed to make the US the ‘crypto capital' of the world…the details of his plans remain to be seen," Yeung said.
He said that targeted and proportionate regulation is crucial for fostering innovation while protecting consumers.
What’s Next: As the election unfolds and regulatory outlooks clarify, Benzinga’s Future of Digital Assets event on Nov. 19 will provide a timely platform for further insights into how these factors could shape the digital assets market.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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