Bitcoin leapt in value by 7.9% over the previous 24 hours, driven by expectations of a crypto-friendly regulatory environment under Donald Trump’s incoming presidency.
On 5 November, the day of the US election, Bitcoin was worth $69,374 (£54,608). A surge in buying over the past month means the price has risen by about 45%.
Bitcoin was created in 2008 as strings of computer code and has no physical form. Reaching $100,000 is a significant milestone for the cryptocurrency.
The six-figure amount was reached hours after Trump said he would nominate former Securities and Exchange Commission (SEC) commissioner Paul Atkins to run the Wall Street regulator.
Atkins is seen as pro-cryptocurrency, while Trump has pledged to make the US “the crypto capital of the planet”.
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Nigel Green, CEO of deVere Group, predicts a short-term sell-off before Bitcoin rallies further to hit $120,000 in the first quarter of 2025.
He said: “This $100,000 breakthrough was inevitable. However, with such a dramatic rise in a short period, it’s natural that some investors will lock in profits. This likely sell-off will be a temporary pause before Bitcoin builds on its momentum, surging to $120,000 as early as the first quarter of next year.
“Bitcoin’s extraordinary run comes as markets anticipate that Trump 2.0 will create a more favourable regulatory framework for cryptocurrencies. Investors are betting on the President-elect’s pro-crypto stance, with policies expected to reduce red tape and promote innovation in blockchain technology.
“Trump’s likely approach to cryptocurrency regulation is already fuelling optimism across the market. His administration will almost certainly prioritise policies that encourage adoption and integration of digital assets into mainstream financial systems. We also expect Trump will install a head of the Securities and Exchange Commission (SEC) who is friendly to the crypto industry.”
Green’s forecast for Bitcoin to hit $120,000 within months is underpinned by several factors. First, the anticipated sell-off is expected to be short-lived, as long-term holders and new buyers step in to capitalise on the temporary dip.
Secondly, Trump’s economic policies, particularly around promoting technological innovation, are likely to increase Bitcoin’s mainstream adoption and institutional inflows.
Green added: “Bitcoin is no longer just a speculative asset. It is a core component of the future of finance, appealing to everyone from Wall Street heavyweights to retail investors seeking to protect and grow their wealth.”
