Trump's Victory Ignites Crypto Frenzy: Bitcoin Surges Past $81,000, Ethereum's Market Cap Exceeds Bank of America, $100,000 Target Within Reach?

Trump's Victory Ignites Crypto Frenzy: Bitcoin Surges Past $81,000, Ethereum's Market Cap Exceeds Bank of America, $100,000 Target Within Reach?Trump's victory has acted as a powerful catalyst, igniting a frenzy in the cryptocurrency market. Bitcoin surged to a record-breaking $81,000, marking a gain of over $10,000 since the election, vastly outpacing the performance of both US stocks and gold during the same period

Trump's Victory Ignites Crypto Frenzy: Bitcoin Surges Past $81,000, Ethereum's Market Cap Exceeds Bank of America, $100,000 Target Within Reach?

Trump's victory has acted as a powerful catalyst, igniting a frenzy in the cryptocurrency market. Bitcoin surged to a record-breaking $81,000, marking a gain of over $10,000 since the election, vastly outpacing the performance of both US stocks and gold during the same period. Ethereum also skyrocketed, surpassing $3,200 and achieving a market capitalization of approximately $383 billion, surpassing Bank of America's market cap. Analysts widely believe this rally is just the beginning and expected to continue until Trump's inauguration.

Trump's campaign promises to protect and enhance the US cryptocurrency industry, ending the SEC's crackdown on cryptocurrencies, are viewed as the most favorable scenario for crypto assets. Standard Chartered Bank anticipates the Trump administration will honor these pledges and prioritize any changes to crypto policy early on, leveraging Republican control of Congress before the November 2026 midterms.

Standard Chartered Bank analyst Geoffrey Kendrick predicts sustained Bitcoin growth, targeting a year-end price of $100,000. He projects the total crypto market cap to expand from its current $2.5 trillion to $10 trillion by the end of 2026. Kendrick also anticipates Bitcoin to easily breach $90,000 by November 29th and reach $100,000 by December 27th.

Financial blog Zerohedge foresees Bitcoin peaking at $125,000 by year-end. If this target is missed, they anticipate it reaching $100,000 on January 20th, the day of Trump's inauguration. Zerohedge also notes December 10th as a noteworthy date when Microsoft's board will vote on whether to invest in Bitcoin.

In the medium term, Kendrick anticipates crypto's strong momentum to continue, projecting Bitcoin at $200,000 and Ethereum at $10,000 by the end of 2025.

The Trump administration may introduce a series of policies reshaping the US cryptocurrency landscape, including:

• Repeal of SAB121: The SEC's guidance document SAB121 on digital assets requires entities acting as custodians for crypto assets to include those assets on their balance sheets and create equivalent liabilities. Repealing SAB121 would pave the way for greater institutional adoption of digital assets.

• Passage of a Stablecoin Act: Stablecoins are becoming a crucial use case for digital assets in the real world. The Trump administration is expected to push for a Stablecoin Act in early 2025, establishing a regulatory framework for banks to issue stablecoins.

• Replacement of the SEC Chair: Trump has been vocal during the campaign about replacing the current Chair, Gary Gensler, who has taken a tough stance on digital assets.

• Possibility of a Bitcoin Reserve Fund: Although considered a low-probability event, Trump mentioned in July that he would retain the government's holdings of Bitcoin (then 210,000 BTC), which could significantly impact the price of this small asset class.

The surge in futures premiums and record open interest for contracts above $90,000 indicate heightened bets on further Bitcoin price gains.

The CME derivatives exchange offers Bitcoin futures contracts, representing a favored method for US institutions to bet on the future price of Bitcoin. Vetle Lunde, head of K33 Research, notes that the CME premium for Ethereum and Bitcoin averaged 14.5% and 14% respectively as of Friday. Prior to the election, these premiums were only 7% and had mostly hovered below 10% for the past six months.

In the options market, there are large open interest positions at the $90,000 strike price, with 4,584 BTC for November 29th and 6,833 BTC for December 27th. For the crucial $100,000 level, open interest for contracts expiring on December 27th stands at 9,461 BTC. On the Deribit derivatives exchange, open interest for Bitcoin prices exceeding $90,000 has risen to over $2.8 billion, a record high.

The positive news surrounding Trump's victory and the strong momentum in the cryptocurrency market both point towards continued upward movement for Bitcoin. Is a $100,000 milestone imminent? What other developments are on the horizon? Only time will tell.