A crypto expert predicts that Bitcoin could reach $100,000 by Inauguration Day, and discusses the potential impact of a Trump Presidency on digital assets.

The value of bitcoin surpassed $90,000 for the first time this week, with investors continuing to increase cryptocurrency prices following the 2024 election.

During the election campaign, experts predicted that President-elect Trump would be more favorable towards cryptocurrencies, as he had pledged to turn the US into a global leader in cryptocurrency and a dominant force in Bitcoin.

Geoff Kendrick, a Standard Chartered analyst, predicted a crypto breakout if either candidate wins the election, with a higher target for a Trump victory in September.

Since election night, the largest and most widely traded cryptocurrency, bitcoin, has experienced a 30% increase. Crypto experts predict that there may be further potential for growth in the near future.

"According to Federico Brokate, vice president and head of U.S. business at crypto ETF firm 21shares, the next price target is $100,000, which they believe can be achieved by Inauguration Day."

The upward price momentum of crypto is partly due to investor optimism about the potential impact of a Republican-controlled government on digital assets, according to Brokate. However, the long-term outlook for crypto would have remained the same regardless of who was elected.

"A Kamala presidency would have resulted in the same outcomes for crypto and digital assets in four years as a Trump presidency," Brokate asserts. "Ultimately, this asset class is not influenced by politics."

Why the current environment is good for crypto

The recent surge in crypto's popularity is not solely due to political factors. Instead, falling interest rates are contributing to its growth, as lower rates make riskier assets like stocks and crypto more appealing.

ETFs tracking the spot price of bitcoin continue to attract investors, managing over $50 billion in investor cash after less than a year on the market.

Potential investor demand for crypto is far greater than what the current market is currently experiencing, according to forward-looking investors.

According to Andy Baehr, managing director of Coindesk Indices, crypto investors can be categorized into three groups: industry professionals, active traders, and "five percenters" - retail investors who want to allocate a small portion of their portfolio to cryptocurrency.

Although the "five percenters" have gained more access to the crypto market due to online brokerages and spot ETFs, crypto is not yet as easy to own as traditional assets like stocks or mutual funds.

"Baehr states that there is still a significant amount of five percenter money that has not yet been invested in a bitcoin ETF, leaving a vast potential for adoption."

If the U.S. government provides a clearer regulatory framework for financial institutions to market and sell crypto and other digital assets to customers, some optimism over a Republican regime comes in.

"According to Baehr, some individuals would prefer a Republican-controlled legislature and a Trump presidency because it is believed that appointees at regulators may be more pro-business or easier to work with. However, this does not mean that they would be pushovers. Instead, there would be enough dialogue and construction of understood pathways to operate more diversified digital asset businesses legally and safely, as has been seen in other countries."

Crypto enthusiasts believe that the U.S. should establish regulatory frameworks like MiCA, which protects investors and regulates stablecoins, and creates a framework for launching and trading new and existing cryptocurrencies in the market.

Institutional and retail customers could benefit from a similar regulation in the U.S. that would allow financial institutions to offer more crypto products and enable fund companies to create ETFs with diversified baskets of cryptocurrencies.

According to Baehr, the regulatory framework for crypto products is essential to attract more retail investors, and it requires will, prioritization, focused energy, and investment.

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