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Prediction: This Is Where Bitcoin Could Go Under a Trump Presidency
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Bitcoin (CRYPTO:BTC) is the world’s largest cryptocurrency, and now arguably one of the most important assets to watch. With a market capitalization of more than $1.8 trillion, Bitcoin would be valued more than most companies, and is currently valued at more than half of the overall crypto market. Indeed, where Bitcoin goes, so too do most other tokens.
Of course, making predictions around where any asset could be headed is a difficult task. But at least when it comes to equities, valuation is more of a science than an art. An investor can model out where he sees future cash flows heading over time, and discount those cash flows back to the present to come up with a target price. In the case of most cryptocurrencies like Bitcoin, it’s more of an art than a science, to say the least.
That said, with Bitcoin reaching a new peak and surpassing $93,000 per token, it’s clear that the market remains very bullish on where this top crypto could be headed from here. I’m going to dive into some of the key factors that have led to this recent rally in Bitcoin, and where this token could be headed from here.
Key Points About This Article:
- Bitcoin remains among the most prominent and important asset classes to watch right now, with an incredible $1.8 trillion market capitalization.
- Here’s where I think Bitcoin could be headed over the course of a Donald Trump presidency.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Trump Prompts Bitcoin Surge
Bitcoin hit a fresh record following the Donald Trump election win a few weeks ago, and has only continued higher following this key catalyst. Donald Trump campaigned as a crypto-friendly president, and all indications are that he’s going to install a whole set of new folks at the top who will be much more favorable in their views of crypto as an asset class. Regulation has remained a key issue for this sector overall. And while the Securities and Exchange Commission (SEC) did allow for spot Bitcoin ETFs to be issue (as well as similar ETFs for Ethereum), the potential for additional public-facing investment options available to the public have many investors bullish on Bitcoin moving forward.
Additionally, Donald Trump has announced plans to make the U.S. a “crypto capital” and amass national bitcoin reserves, fueling speculation in crypto stocks. Bitcoin has been a clear beneficiary of these announcements, as the fund Trump discussed was focused on Bitcoin, though other assets could theoretically be added to a future reserve.
Trump has also meddled in the largely-unregulated crypto industry during his time away from the presidency, launching World Liberty Financial in September seemingly as a way to at least partially finance his campaign. We’ll have to see if more developments are brought forward on this front, but it’s clear that Bitcoin is likely to remain a key winner among the group based on what Trump has already announced.
The Momentum Is Hard to Ignore
Largely viewed as digital gold among many of its investor base, Bitcoin’s finite supply, scarcity and use as a currency make this top digital asset one investors hold for a range of reasons. However, the fact that Bitcoin is also a risk asset makes recent surges such as the one we’ve seen this month even more intriguing to consider.
The question many have is whether other nation states will adopt a similar measure as the Trump campaign has promised, with developing their own Bitcoin reserves. Additionally, the potential impacts of such a reserve on the value of the U.S. dollar remain unknown. These potential risks/rewards have spurred strong momentum in this top token. And that’s to say nothing of the supply and demand dislocation we’ve seen in the market as a result of the recent Bitcoin halving this year combined with the launch of spot ETFs.
If additional investment products become available to fund managers, I do think the wave of capital we’ve seen flow into Bitcoin could intensify. If that’s the case, all bets are off with respect to how high this crypto could be headed from here.
Here’s Where Bitcoin Could Be Headed
As far as I’m concerned, finding another asset class with more momentum than Bitcoin is hard right now. Sure, there may be a number of AI-related plays that could be better bets from a momentum perspective. But with political and regulatory tailwinds now firmly behind Bitcoin, as well as a range of other catalysts leading to supply and demand imbalances for the world’s largest crypto, this is a token with plenty of upside potential over the long-term (and some serious short-term upside potential as well).
I’m of the view that Bitcoin could easily surpass the $150,000 mark under a Donald Trump presidency, and this feat could be accomplished sooner than later. With an expected flurry of institutional capital flowing into Bitcoin from money managers everywhere looking to diversify into assets that can potentially beat the market, this rally could be far from over. As many in the Bitcoin community like to say, it’s possible “we’re still early.”
In the doldrums of the so-called “crypto winter,” the narrative was very different. But with a number of clear and decisive catalysts, I do think a $150,000 price target over the next few years is one that makes sense.
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