Bitcoin Price Surged Past $89,000 for the First Time in a Continued Rally Since the Re-election of President Donald Trump

Bitcoin continued its rally on Monday night, reaching as high as $89,599 early on Tuesday, as investors continued to be bullish

Bitcoin price continued its surge on Monday night, reaching as high as $89,599 early on Tuesday, as investors remained bullish over President-elect Donald Trump’s pro-crypto stance and his promise to reshape cryptocurrency regulations.

Bitcoin price has surged about 32 percent since the US election on November 5, with analysts expecting the cryptocurrency to hit the $100,000 mark by year-end. “Bitcoin is now in price discovery mode,” said Mike Colonnese, an analyst at H C Wainwright, in a CNBC news report.

The rally has sparked widespread optimism across the crypto sector. Bernstein analysts have reiterated their long-term target of $200,000 by 2025 for Bitcoin, keeping a bullish view under the incoming Trump administration. “We expect a crypto-friendly regulatory environment under Trump, starting with a pro-crypto SEC,” said Bernstein analysts led by Gautam Chhugani. “Even at $81K/Bitcoin, we believe risk-reward is favourable over the next 12 months,” they added.

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The renewed momentum comes amid promises by Donald Trump to position the US as a global crypto leader. His agenda includes establishing a strategic Bitcoin reserve and incentivising domestic mining. This would reverse the regulatory caution followed by current President Joe Biden’s administration.

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Mike Colonnese of H C Wainwright, said, “Strong positive sentiment is likely to persist through the balance of 2024, and [we] see Bitcoin prices potentially reaching the six-figure mark by the end of this year.”

The surge in Bitcoin price has lifted the overall crypto market value to a record high of an estimated $3.1 trillion. Chris Weston, head of research at Pepperstone Group, described investors’ dilemma: “The question for traders not already set is whether there is still room to chase this red-hot play or wait for a slight retracement and for some of the heat to come out of the impulsive trend.”

The market is also seeing robust institutional participation, with MicroStrategy recently buying 27,200 Bitcoin for about $2 billion. Options data from the Deribit exchange shows that investors are positioning for Bitcoin to break $100,000 by year-end, reported Bloomberg.

While enthusiasm remains high, some analysts advise caution given the steep pace of gains. “It would be natural to see a period of digestion after such a steep run-up,” recommending a “short-term neutral bias,” according to Bloomberg.

Nevertheless, with Trump’s commitment to building a favourable regulatory environment, Bitcoin’s bullish momentum is seen as part of a broader “Trump trade,” which includes gains in US stocks and the dollar amid his focus on economic growth and domestic investments.

Earlier, on November 6, Bitcoin price saw an immediate surge of as much as 8 percent in a single day, reaching a new all-time high of $75,000 with Donald Trump's rise in the US election.

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