Trump Win Ignites Crypto Frenzy: Bitcoin Breaks $81,000, Ethereum Surpasses Bank of America in Market Cap, Institutions Expect $100,000 Run

Trump Win Ignites Crypto Frenzy: Bitcoin Breaks $81,000, Ethereum Surpasses Bank of America in Market Cap, Institutions Expect $100,000 RunTrump's election victory seems to have ignited enthusiasm in the crypto market. Bitcoin prices rose over 6% on Sunday and continued to surge on Monday, breaking through $82,000 to hit a new all-time high

Trump Win Ignites Crypto Frenzy: Bitcoin Breaks $81,000, Ethereum Surpasses Bank of America in Market Cap, Institutions Expect $100,000 Run

Trump's election victory seems to have ignited enthusiasm in the crypto market. Bitcoin prices rose over 6% on Sunday and continued to surge on Monday, breaking through $82,000 to hit a new all-time high. Since Trump's win, Bitcoin's price has risen over $10,000, outpacing gains in both US stocks and gold during the same period.

Year-to-date, Bitcoin prices have soared over 90% fueled by strong demand for spot ETFs and expectations of Fed rate cuts. In the days following Trump's election victory, Bitcoin ETFs once again witnessed massive inflows. iShares Bitcoin Trust ETF (IBIT), managed by BlackRock, recorded a record daily net inflow of nearly $1.4 billion on Thursday.

Trump's campaign promises to protect and promote the US cryptocurrency industry and to end the SEC's crackdown on crypto have been viewed as the most favorable outcome for crypto assets. Standard Chartered believes the Trump administration will deliver on its promises and quickly push through policy changes related to cryptocurrency, leveraging the Republican advantage in Congress ahead of the midterm elections in November 2026.

Standard Chartered expects Bitcoin to hit $100,000 by year-end, forecasting the total market capitalization of cryptocurrencies to grow to $10 trillion by the end of 2026, up from the current $2.5 trillion. They argue that Trump is likely to introduce a series of policies that will reshape the US cryptocurrency industry, including:

• Repeal of SAB121: SEC guidance document SAB121 requires entities that act as custodians for digital assets to list these assets on their balance sheets and create liabilities of equal value. Repealing SAB121 would pave the way for further institutional adoption of digital assets.

• Passage of the Stablecoin Act: Stablecoins are becoming a key use case for digital assets in the real world. Over the past 12 months, three important bills have been introduced in the House of Representatives aimed at establishing a regulatory framework for banks to issue stablecoins. Under the Trump administration, this legislation is expected to gain further traction in early 2025.

• SEC Reshuffle: Trump has made it clear during his campaign that he will replace current SEC Chair Gary Gensler, who has taken a firm stance on digital assets.

• Possibility of a Bitcoin Reserve Fund: Trump mentioned in July that he would retain the government's holdings of Bitcoin (at that time, 210,000 BTC), which could have a significant price-boosting impact on this small asset class, though this possibility is less likely.

Given the current market momentum, Standard Chartered analyst Geoffrey Kendrick forecasts $90,000 as the next target for Bitcoin, which is expected to be easily achieved by November 29th, followed by an easy run to $100,000 by December 27th. Financial blog Zerohedge predicts Bitcoin will peak at $125,000 by year-end, and if that target isn't met by December 31st, it's expected to be achieved by January 20th, as many Trump trades peaked on the inauguration day in January 2016. Zerohedge also highlights December 10th as another date to watch, when the Microsoft board will vote on whether to invest in Bitcoin.

In the medium term, Kendrick believes the strong momentum in crypto will continue, with Bitcoin expected to reach $200,000 by the end of 2025 and Ethereum to reach $10,000.

Beyond price predictions, futures and options markets also reveal investors' optimism about continued Bitcoin price increases. CME Group, a derivatives exchange that offers Bitcoin futures contracts, is a popular way for US institutions to bet on the future price of Bitcoin. Vetle Lunde, head of K33 Research, says that as of Friday, the CME premium for Ethereum and Bitcoin averaged 14.5% and 14%, respectively, compared to 7% before the election. These premiums had hovered below 10% for most of the last six months.

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

It's important to note that the above analysis is for informational purposes only and does not constitute investment advice. Markets are risky, and investing involves risks.