Bitcoin Community Celebrates Victory as Donald Trump and Allies Elected to Reshape US Crypto Policy

Pro-crypto candidates' success in the US election signals a new dawn for digital assets and regulatory reform.

Bitcoin price hit a new all-time high of $75,000 following Donald Trump’s 2024 U.S. presidential election win, reflecting heightened market optimism and anticipation of potential policy shifts favorable to digital assets.

According to a report by digital asset custodian Copper.co, Bitcoin’s upward trajectory may continue into the new year. Fadi Aboualfa, Head of Research at Copper.co, said,

“We have back-tested the ETF accumulation trend against potential price ranges.

A $100,000 Bitcoin is quite possible by the time the 47th U.S. President heads to the Capitol for inauguration on January 20, with ETFs holding approximately 1.1 million Bitcoins.”

Copper.co’s forecast is based on historical ETF accumulation trends and current market data. In October, the firm predicted that ETFs could hold just under one million Bitcoin by the U.S. elections, a projection that closely aligns with the current holdings. The increasing ETF holdings indicate growing institutional interest in Bitcoin as a hedge against economic uncertainty.

In line with this prediction, trading platforms experienced significant activity during election night. Robinhood reported its largest-ever equities overnight session since launching its 24-Hour Market, with an 11-fold increase in overnight notional volume from 8 P.M. to 4 A.M. The platform noted over 400 million election contracts traded, with top symbols including COIN, DJT, IBIT, MSTR, NVDA, QQQ, SPY, TSLA, TSLL, and TQQQ. In the crypto sector, Bitcoin, Dogecoin, and Ethereum were among the most traded assets.

Market analysts highlighted that Trump’s victory, coupled with his administration’s oversight of two Bitcoin all-time high cycles during his previous term, bodes well for crypto-friendly fiscal policies. These gains occurred amid a weakening dollar, a factor that may present a different landscape given the current stronger dollar environment. However, investor optimism remains strong despite this shift.

Meanwhile, Copper.co anticipates challenges for Ethereum despite favorable supply trends. Betting markets assign only a 13% chance of Ethereum reaching a new all-time high this year, although this marks an improvement from 8% pre-election. While Ethereum’s year-to-date supply growth stands at 89,000 ETH compared to the 5.7 million coins moved into staking, the lukewarm appeal of ETFs has dampened trader sentiment even as investors remain largely unfazed.

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