Following Donald Trump’s victory in the 2024 U.S. presidential election, Bitcoin's price surged to approximately $76,000. The result was met with optimism from leaders within the crypto industry, who foresee a more favorable landscape for digital assets under Trump’s administration. Notably, Matt Hougan, Chief Investment Officer at Bitwise, projected that Bitcoin could reach $100,000 by the end of the year and potentially $200,000 by 2025.
Election Sparks Market Rally
Trump’s election, accompanied by pro-crypto candidates securing control of both the House and Senate, catalyzed a rally in the crypto market. Bitcoin’s price rose over 10% above $75,500, setting new record highs. The early New York trading session also marked significant activity, with BlackRock’s Bitcoin ETF recording over $1 billion in trading volume. The overall crypto market experienced a 5.3% increase post-election, affecting Bitcoin and other major digital assets.
Historical Trends Supporting Bitcoin’s Rise
Bitcoin’s recent surge can be partially attributed to historical patterns observed during past U.S. presidential election periods. For example, one year after the 2020 election, Bitcoin’s price climbed by 369%, increasing from around $13,000 to nearly $61,000 by November 2021. Investors are now expecting a similar trend to follow the 2024 election.
Additionally, Bitcoin has a history of strong Q4 performances. Data from Coinglass shows an average return of 83% and a median return of 37% for Bitcoin during Q4, higher than any other quarter. This pattern aligns with the recent price momentum and supports the possibility of continued gains in the current quarter.
Industry Leaders React to Trump’s Victory
The crypto sector's response to Trump’s re-election has been positive, with several influential figures noting potential advantages for the industry. Matt Hougan from Bitwise described this period as the start of a “Golden Age of Crypto,” predicting Bitcoin’s price to exceed $100,000 by year-end and reach $200,000 by 2025. He also suggested that other cryptocurrencies facing regulatory challenges might perform better under a pro-crypto administration.
Samson Mow, CEO of Bitcoin startup JAN3, echoed these sentiments, stating that Trump’s victory could facilitate increased Bitcoin adoption across the U.S. The positive market sentiment stems from Trump’s previous support for crypto-related initiatives during his campaign, which has influenced industry expectations for his presidency.
