Trump's Victory Ignites Cryptocurrency Market: Bitcoin Surges Past $89,000, Wall Street Analysts Predict $120,000

Trump's Victory Ignites Cryptocurrency Market: Bitcoin Surges Past $89,000, Wall Street Analysts Predict $120,000The cryptocurrency market, often viewed as a crucial component of the "Trump trade," has recently witnessed a surge in momentum. Bitcoin, in particular, has been a standout performer, soaring to a record high of $89,800 per coin, marking the first time it has breached the $89,000 mark

Trump's Victory Ignites Cryptocurrency Market: Bitcoin Surges Past $89,000, Wall Street Analysts Predict $120,000

The cryptocurrency market, often viewed as a crucial component of the "Trump trade," has recently witnessed a surge in momentum. Bitcoin, in particular, has been a standout performer, soaring to a record high of $89,800 per coin, marking the first time it has breached the $89,000 mark. Concurrently, Ethereum and Dogecoin followed suit, establishing new highs at $3,371.76 per coin and $0.34799 per coin respectively.

"Bitcoin whales" have re-entered the market, injecting substantial energy into the crypto sphere. MicroStrategy announced a purchase of approximately 27,200 bitcoins for roughly $2.03 billion (equivalent to 14.6 billion yuan), marking its largest buy since December 2020. This has propelled crypto-related stocks to new heights. Canaan Inc.'s stock price skyrocketed by 39.8%, BitDigital surged by 26.34%, Coinbase experienced a 19.76% increase, and Riot Platforms witnessed a 16.86% rise, igniting fervent investor interest in the cryptocurrency market.

Wall Street's bullish sentiment towards Bitcoin remains unabated. Last Thursday, NedDavisResearch upgraded its trading rating for Bitcoin to "Buy-only Trading" and forecast that the cryptocurrency could skyrocket to over $120,000 by next spring. Pat Tschosik, a strategist at NedDavisResearch, attributed the surge to market optimism surrounding Trump's victory. He believes that Bitcoin's path upward will encounter minimal resistance, at least until Trump assumes office. Tschosik also conducted a technical analysis of Bitcoin's upward potential, suggesting that this rally could potentially reach around $120,000 or even higher.

Additionally, Gautam Chhugani, an analyst at Bernstein, stated in his latest report that Trump's victory would have a positive impact on the cryptocurrency market, predicting that Bitcoin's price could climb to the range of $80,000 to $90,000 within the next two months. Geoff Kendrick of Standard Chartered Bank had previously predicted that Bitcoin could reach $125,000 by year-end if Trump won. Jan VanEck, CEO of VanEck, proposed a bolder outlook, asserting that Bitcoin's long-term target price should be $300,000, which he considered a reasonable baseline assumption with the potential for even greater growth considering the cryptocurrency market's potential.

Looking back at Bitcoin's historical performance, it has steadily climbed from $25,000 in June of last year to a peak of slightly below $74,000 in mid-March of this year. After consolidating for approximately seven months, Bitcoin has now overcome its previous resistance level, driven by the significant positive factor of Trump's election victory, and re-entered an upward trajectory. Market consensus suggests that the previous resistance level of $74,000 has now transformed into a support level, and the upward movement could potentially mirror the previous rally, implying that this surge could reach or even surpass $120,000.

This article was originally published on Jinrongjie.

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