Bitcoin surged to a new all-time high this morning, eclipsing $82,300, as post-election market euphoria continues to propel the cryptocurrency’s price upwards. Experts believe this is just the beginning of a significant bull run.
The $1.6 trillion digital asset has maintained its upward trajectory since surpassing its previous March peak, which followed Donald Trump’s presidential victory.
“Despite the post-election ‘Trump Pump,’ we are still in the early stages of this bull cycle,” observed David Brickell, head of international distribution at FRNT Financial, and former forex trader Chris Mills, in their recent newsletter.
Several factors are contributing to the market’s bullish sentiment, including the outcome of the US elections and the Federal Reserve’s monetary policy.
Republican Sweep Fuels Optimism
The Republican Party’s success in securing a Senate majority and making gains in the House has energized the cryptocurrency market. Analysts suggest that a Republican-controlled Congress could pave the way for crypto-friendly legislation.
Potential legislative changes include repealing SEC guidance that restricts banks from holding cryptocurrencies and establishing clear regulations for stablecoins, a key instrument for trading Bitcoin and other digital assets.
Federal Reserve Rate Cuts Add Fuel to the Fire
Last week’s quarter-point interest rate cut by the Federal Reserve further bolstered the outlook for risk-on assets, including cryptocurrencies. The CME Group’s FedWatch tool indicates a 68.5% probability of another 0.25% rate cut at the Fed’s December 18th meeting.
While President Trump’s tariff policies might temper further rate cuts, Brickell and Mills anticipate that the Federal Reserve and other central banks will continue to lower interest rates, indirectly boosting risk-on assets like Bitcoin.
Analysts offer varying predictions for Bitcoin’s future price. Standard Chartered, a British investment bank, forecasts Bitcoin reaching $125,000 by the end of the year and a staggering $200,000 by the end of next year.
“The shift from a potentially negative stance under a Biden administration to a proactively positive one under Trump has significantly impacted the industry,” stated Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered.
