As investors look forward to the US Federal Reserve and China to release trillions of dollars into the market, Bitcoin has seen its price rise to over $40,000 per coin. This is more than double its price last year.
Now, crypto analysts have predicted that next year could be the biggest yet for Bitcoin and the entire crypto market, should former president Donald Trump beat incumbent Joe Biden in the general elections.
A Trump Presidency Could Mean Less Oversight For Bitcoin
According to investment management firm VanEck, a Trump victory will help Bitcoin reach a price of $100,000 by December 2024, and a market cap of approximately $2 trillion.
In a 2024 crypto and Bitcoin prediction paper, analysts Patrick Bush and Matthew Sigel opine that “In the second half of 2-24, Bitcoin will climb a Presidential-sized wall of worry.”
According to the prediction, a combative election will see Donald Trump sweep up 290 electoral votes on his way to toppling Biden. Such a win will raise optimism that the new Trump administration will put a leash on the SEC and its hostile attitude towards the crypto market.
In the recent past, the SEC has been waging war on Bitcoin and the other digital currencies. SEC chair Gary Gensler has accused major crypto exchanges such as coinbase of committing securities fraud.
The two analysts have predicted a Trump victory on the weight of recent opinion polls that place him ahead of President Joe Biden.
The price of Bitcoin has also been surging as investors bet that the SEC is done with its slew of tough regulatory actions, and that big investment banks and fund managers will begin adopting it.
Despite a slew of convictions against several heavy hitters in the crypto space, Bitcoin has managed to hold its own.
The United States government fined Binance a mouthwatering $4.3 billion for participating in money laundering. Still, the biggest crypto exchange in the world did not shut down, further fuelling investors confidence.
Several Factors Fuelling A Bitcoin Price Surge
Some analysts even foresee the onset of a new supercycle in the market. Last month US investment bank, Bernstein gave a prediction that the number one crypto in the world could gain three times in value by 2025, rising to $150,000.
If the SEC gives approval for exchange traded funds that make direct investments in digital coins, optimism will only grow further.
Many traders have already started stockpiling cryptocurrencies in anticipation of increasing demand.
The hope is that if the regulators in the US approve crypto ETFS, the current price rally will have a more durable support, unlike previous price spikes.
