As President-elect Donald Trump approaches his inauguration on January 20, the cryptocurrency market has experienced a significant surge, with Bitcoin reaching an all-time high of $104,000 on December 5.
This increase, nearly 50% since Trump’s election, has sparked expectations of a new era for crypto regulations in the United States. Sources close to Trump indicate that he aims for Bitcoin to achieve a milestone of $150,000 during his second term in office.
The ‘Trump Trade’
According to a recent report from AXIOS, Trump has promised a “golden age of America,” and the rise of cryptocurrencies is seen as part of this vision. The “Trump trade,” a term used by investors capitalizing on the new administration, encompasses sectors such as oil and gas, financial services, and crypto.
Trump’s enthusiasm for Bitcoin was evident in a recent post on Truth Social, where he congratulated Bitcoin investors on reaching the $100,000 mark, declaring, “YOU’RE WELCOME!!!”
With an eye on fostering a crypto-friendly environment, Trump has appointed Paul Atkins, a known advocate for the industry, as the chair of the Securities and Exchange Commission (SEC).
Additionally, he has selected David Sacks, a prominent figure from the “PayPal Mafia,” to serve as the White House AI and crypto czar. Sacks is tasked with establishing a legal framework that provides the clarity the crypto industry has long sought.
The growing influence of the cryptocurrency sector was also highlighted in a “60 Minutes” segment, which revealed that crypto companies contributed one-third of all direct corporate donations to super PACs during the election.
The industry’s backing of candidates was notably successful, with an impressive 85% win rate among the 62 politicians it supported, both Republicans and Democrats.
Will Bitcoin Reach $150,000 Early In His Presidency?
Transition sources indicate that Trump will closely monitor Bitcoin’s price movements, viewing them as a significant indicator of market health.
“It’s another stock market for him,” one source noted, emphasizing Trump’s desire for Bitcoin to reach the ambitious target of $150,000 early in his presidency.
Adding to the bullish sentiment, Eric Trump recently expressed confidence in Bitcoin’s advantages over traditional assets like real estate and gold.
Donald Trump’s son highlighted Bitcoin’s fixed supply of 21 million coins as a key factor driving its value, contrasting it with gold, which can be mined further as prices rise. Eric Trump stated, “Name another commodity that’s capped. Name another commodity that as prices go up, it’s not further exploited.”
In a striking assertion, Eric Trump suggested that the psychological milestone of Bitcoin hitting $100,000 could pave the way for even greater price targets.
He expressed optimism that the cryptocurrency could eventually reach $1 million, stating, “I’m confident it’s going to hit $1 million. I think we are all confident in this room that it will hit $1 million.”
At the the time of writing, the market’s main cryptocurrency trades around $96,000, having fluctuated over the previous 5 days between current trading levels and near the $100,000 mark, which is currently acting as a significant barrier to the Bitcoin price.
Featured image from DALL-E, chart from TradingView.com
