Crypto Quill

Bitcoin continued its record-breaking rally on Monday, surpassing $88,000 for the first time ever, as the cryptocurrency market rides high on the optimism surrounding President-elect Donald Trump’s pro-crypto stance. The flagship digital asset hit a new all-time high of $88,448, according to CoinDesk data, marking a 14.1% increase since the U.S. election on November 5. Analysts predict that Bitcoin could push even further, with many forecasting $100,000 by the end of 2024.

Bernstein Analysts Recommend Aggressive Crypto Investment

Following Bitcoin’s latest surge, Bernstein analysts have urged investors to dive into the crypto market. In a Monday note, analysts led by Gautam Chhugani advised investors to embrace the crypto bull market, emphasizing the favorable regulatory environment expected under Trump’s administration. “Don’t fight this,” the analysts wrote, encouraging investors to “buy everything you can.”

Trump’s campaign promises, including appointing a pro-crypto Securities and Exchange Commission (SEC) Chair and establishing a national Bitcoin reserve, have been key drivers behind the market’s positive momentum. Bernstein analysts have remained confident in their $200,000 Bitcoin price target by the end of 2025, despite Bitcoin’s already impressive rise this year.

Trump’s Pro-Crypto Agenda Sparks Market Rally

The crypto market’s optimism is fueled by Trump’s commitment to creating a regulatory environment more favorable to digital assets. This includes his pledge to make the U.S. a global crypto hub and his support for Bitcoin as a key part of America’s economic future. As a result, Bitcoin’s recent price increase has coincided with renewed investor confidence across the cryptocurrency industry.

“After the U.S. election results, we now have a positive regulatory environment that’s pushing us higher,” said Matt Hougan, Chief Investment Officer at Bitwise Asset Management.

Bitcoin ETFs and Stocks See Strong Inflows

The rally isn’t confined to Bitcoin alone. Spot Bitcoin exchange-traded funds (ETFs) saw significant inflows, with $1.63 billion invested during election week, primarily driven by BlackRock’s iShares Bitcoin Trust ETF (IBIT), which led with $1.25 billion in inflows. Bitcoin ETFs have experienced a 30.5% gain this year, contributing to the growing excitement in the market.

Shares of cryptocurrency exchanges like Coinbase and trading apps such as Robinhood have also soared. Coinbase, for instance, surged 20% on Monday, bringing its year-to-date growth to a remarkable 86%. Robinhood, another crypto-friendly platform, rose by 7.4% following a 27.4% increase last week.

Bitcoin Miners Benefit from Bullish Sentiment

Bitcoin mining companies are also capitalizing on the current bullish trend. Stocks of miners such as Bit Digital (BTBT), Marathon Digital Holdings (MARA), and Hut 8 Mining (HUT) saw significant gains, further fueling the market’s upward momentum. Marathon Digital, in particular, spiked 30% on Monday, continuing its strong performance throughout the year.

Ethereum and Other Cryptocurrencies Also Benefit

Ethereum, Bitcoin’s biggest rival in the crypto space, saw a notable gain on Monday, rising to $3,371, surpassing its October 2024 high. Ethereum has surged by 47% in 2024 and continues to be a popular choice among investors, even though it remains below its all-time high of $4,800 reached in November 2021.

Caution Advised for New Crypto Investors

While the market is brimming with optimism, crypto experts also warn new investors to exercise caution, particularly when it comes to Bitcoin’s volatility and the presence of malicious actors targeting newcomers. “Bitcoin’s volatility makes it attractive to new investors, but they should take time to educate themselves on the risks,” said Anthony Yeung, global head of strategic development at crypto security firm CoinCover. “With Bitcoin expected to rise even further, new investors should be particularly wary of these threats.”

Bitcoin’s ascent to new record highs, alongside the broader cryptocurrency rally, reflects the market’s growing confidence in the future of digital assets under Trump’s administration. With Bitcoin potentially heading toward $100,000 by year-end and analysts forecasting even higher prices in the coming years, the crypto market is poised for continued growth, despite the need for caution among new investors.