Bitcoin is on track for a nearly 40% increase in value this November, with its price inching closer to the $100,000 mark.
The price of bitcoin has been on a steady rise since the re-election of Donald Trump, reaching new highs in the process.
Coin Metrics reports that Bitcoin is expected to achieve a 38% increase in value for November, surpassing its best month since February and setting a new record for the year.
Bitcoin was flat on an intraday basis, while bitcoin proxies gained 4% and 6%, respectively.
In November, investors were anticipating the second presidency of Trump and his potential impact on the crypto industry. During his re-election campaign, Trump promised to bring the industry out of a regulatory dark period characterized by the absence of clear digital asset regulation and the enforcement-based approach of the Securities and Exchange Commission, led by Gary Gensler.
The victory sent bitcoin soaring to within $100 of the highly anticipated $100,000 milestone. Another Trump term adds legitimacy to the young crypto industry and serves as a macro catalyst, suggesting larger budget deficits, inflation, and changes to the international role of the dollar, all of which would positively impact the price of bitcoin.
Following the election, BlackRock's IBIT fund, which leads the way in bitcoin ETFs, experienced significant inflows, including its largest inflow day on record. At the same time, options on bitcoin ETFs were introduced, providing a new way to trade and speculate on the price of bitcoin.
The price of Bitcoin is predicted by bulls to reach $100,000 by the end of this year and possibly double by the end of 2025. Although the U.S. election temporarily boosted the price, many investors believe its impact as a Bitcoin catalyst will remain limited in 2024. The coin has already been largely de-risked from a regulatory standpoint, and there is little uncertainty about its trading or its role as digital gold. Investors are relying on its fundamentals to continue driving the price upward.
The combination of a decrease in bitcoin's supply after the April halving and an increase in demand for it as a treasury reserve asset by institutions and states is expected to cause the price to increase. Bitcoin's price typically peaks at least a year after the halving.
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