The Trump Effect Continues: Bitcoin Hits New Heights

The morning after the U.S. presidential election, where Trump was declared the winner, Bitcoin had already increased in value by a staggering 25% since mid-October. Nearly two weeks later, the increase has surpassed 30%. Last Wednesday, yet another milestone was reached as Bitcoin’s price exceeded $90,000 for the first time in history.

src: Binance

What’s Driving the Surge?

Speculation in cryptocurrencies surged after Trump hinted at softer regulations for the sector, compared to the stricter stance taken by the SEC (United States Securities and Exchange Commission) under President Joe Biden. At a Bitcoin conference earlier this summer, Trump declared, “The United States will be the crypto capital of the planet and the Bitcoin superpower of the world”.

This marks a notable shift for Trump, who previously voiced scepticism about cryptocurrencies and criticised Bitcoin as a potential competitor to the US dollar.

The shift in Trump’s stance may be linked to his recognition of crypto’s potential to attract economic capital. Eric Wall, a crypto expert and investor, also points out that “…one reason Trump has softened his stance on crypto is that he has started profiting from creating his own NFTs (Non-fungible Tokens).”

Bitcoin’s Price Trajectory: Correction or Prolonged Bull Market?

Regardless of past opinions, the Trump effect has pushed Bitcoin to new heights. Whether easing crypto regulations becomes a priority for Trump alongside his agenda for higher tariffs and other measures remains to be seen. If these promises are not fulfilled, there is a risk of price corrections and consolidation, potentially driving Bitcoin’s price as low as $60,000.

In a post on X, Ki Young Ju, founder of the crypto analytics firm CryptoQuant, shared his predictions for Bitcoin’s near future. Initially, based on signals of an overheated market, he forecasted a drop to $58,974.

However, in a later update, he revised his outlook, suggesting that Bitcoin is now entering a phase of “price discovery” (a stage where the market determines an asset’s fair value, often seen during new highs or entry into new markets).

He outlined two possible scenarios:

• Correction and consolidation: Could support a prolonged bull market.
• No correction: Could lead to a strong rally by year-end but risks triggering a bear market in 2025.

The evolving market conditions underscore the uncertainty surrounding Bitcoin’s price movements. Will the rally continue, or is a downturn imminent?