Bitcoin breaks records: the rapid growth of “digital gold” after rumors of Trump’s deal with Bakkt

It is always interesting to see how political events, the rise of radical leaders and the activity of large corporations affect the dynamics of the currency market, in particular the growth of Bitcoin. Rapid, unprecedented growth became one of the central topics of the economic information agenda of the world mass media cryptocurrencies after the recent US election. The most capitalized cryptocurrency bitcoin (BTC) rose to a record high of over $94,000 amid a possible purchase of cryptocurrency company Bakkt by Donald Trump’s ( TMTG ) social network. He writes about it Reuters.

Over the past year, “digital gold” has increased by more than 151%, indicating its high volatility and potential for investors. Today, the price of bitcoin “broke through the ceiling” at $94,700. During the year, the maximum price reached about $90,947.98, and the minimum – $35,965.36.

Rumors that Trump Media and Technology Group (TMTG), owned by Donald Trump, may acquire cryptocurrency platform Bakkt have generated a lot of interest among investors. They believed that this could make cryptocurrencies more legitimate and widespread. This caused a surge in demand for Bitcoin, as investors expected such a partnership to boost the cryptocurrency’s popularity. The market reacted instantly and prices remained high thanks to traders’ optimism and speculation about future prospects.

Why the cryptocurrency market soared after the US election on November 5

Investors expected President-elect Trump to introduce positive changes in the regulation of digital assets. Political uncertainty ahead of the election has given way to hopes for a more loyal policy that will support innovation and reduce regulatory pressure.

Trump has repeatedly expressed his intention to create favorable conditions for the development of modern technologies, including blockchain and cryptocurrency. These promises have inspired investors, who have begun to invest heavily in digital assets, expecting that the reduction of bureaucratic barriers will open up new opportunities for the industry.

Expectations of a change in regulatory policy have boosted demand for cryptocurrencies, causing their prices to rise. Investors began to invest in digital assets not only as a financial instrument, but also as a promising direction that will become more legalized and stable in the future. Therefore, the end of the election was a turning point for the cryptocurrency market, creating a springboard for its further development.

Optimism among traders and investors about the cryptocurrency market has led to a historic increase in its value. The total market capitalization of cryptocurrencies exceeded $3 trillion, reaching a record level in history.

This growth was due to several factors. The massive inflow of capital into the market was the result of growing interest in digital assets, which investors began to see as a promising tool for preserving value and generating profits. Additional impetus was created by speculation about potential deals – the expectation of partnerships with large companies or even the recognition of cryptocurrencies at the state level.

Bitcoin as a leading market player has received the most attention. Its status as “digital gold” and its reputation as the most reliable digital asset attracted not only small traders, but also institutional investors who were looking for new opportunities to deploy capital.

Positive news about possible cryptocurrency deals was also an important factor. For example, rumors about the acquisition of the Bakkt platform by the Trump Media and Technology Group (TMTG) caused a wave of optimism. Investors saw this as a sign that cryptocurrencies will have a greater impact on the global economy and become integrated into everyday life.

Another important factor was the expansion of tools for trading digital assets. The introduction of Bitcoin ETF by BlackRock on the Nasdaq exchange has created new opportunities for large institutional investors. This allowed them to invest in cryptocurrencies through regulated financial instruments, making investments in digital assets more accessible and attractive.

The combination of political changes, positive news and new financial instruments created a powerful impetus for the development of the cryptocurrency market. Interest in digital assets has grown to an unprecedented level, attracting both retail and large institutional investors, resulting in a growth in market capitalization and setting new historical records.

What traders and analysts predict about the future of Bitcoin

Predictions by traders and analysts about the future of Bitcoin vary, but generally show optimistic expectations.

According to the data Binance, by the end of this week the value of BTC may increase by 5% and reach approximately $94,570.50. This growth of Bitcoin can be explained primarily by the positive sentiment in the cryptocurrency market, which draws attention to Bitcoin as a major asset, which determines the overall dynamics.

The price is also affected by important news, such as the launch of new products like Bitcoin-ETFs, regulatory changes or increased interest from corporations and banks. Such events often add optimism to investors and increase demand.

Technical analysis also plays a role: if Bitcoin is in an uptrend and technical levels show growth potential, traders see this as a buy signal. In addition, macroeconomic factors – expectations of inflation or instability of traditional markets – encourage investors to prefer Bitcoin to protect their capital.

It is worth remembering the psychological factor: speculative interest is fueled by approaching historical highs or key levels. The actions of big players – “whales” – who accumulate BTC also noticeably affect the price dynamics.

Finally, analysts take into account historical trends: if Bitcoin has previously seen growth during this period, this precedent can become an additional basis for the forecast. All these factors together support expectations of a 5% price increase.

Analysts StormGain predict that by the end of the year, the average price of Bitcoin may reach $136,360.45. This prediction is based on several factors.

One of them is halving, the process of reducing the reward to miners, which occurs once every four years and reduces the supply of coins. Historically, after each halving, the price of Bitcoin increased significantly. Limiting the total supply to 21 million coins is also helping to increase value amid increased demand.

Institutional investors also have an important influence. Large companies, banks and investment funds are increasingly adding Bitcoin to their portfolios. Additionally, the launch of Bitcoin-related ETFs makes it easier to access the cryptocurrency, which increases demand.

Global economic conditions – inflation or market volatility – are fueling interest in Bitcoin as a store of value. Its limited supply and decentralization make it particularly attractive.

Developments in infrastructure, such as the Lightning Network, make Bitcoin more convenient to use in everyday transactions, and the adoption of the cryptocurrency by individual countries or companies increases its popularity. These factors together form the basis for an expected rise in the price of Bitcoin to the indicated level by the end of 2024.

As for long-term forecasts, according to the data Traders Union, by the end of 2029, the value of BTC may reach $285,555.59. Bitcoin’s limited supply will play a role: the total number of coins is 21 million, and most of them have already been mined. The halving, which reduces the production of new coins, together with the steady demand creates a scarcity that increases the price.

Legislation in many countries is expected to make the market more transparent and attractive to large investors, which will increase demand for Bitcoin.

ETFs and cryptocurrency derivatives make BTC more accessible to investors, increasing its liquidity and popularity.

StormGain also notes the importance of the influence of technologies such as the Lightning Network, which make “digital gold” faster and more convenient for transactions, and further stimulate its spread as a means of payment and an investment asset.

And of course, in the current hype, the FOMO effect works – a psychological phenomenon that occurs when a person feels the fear of missing out on a profitable opportunity, which further increases demand.

So, all these factors together: supply shortage, institutional interest, regulatory support, economic challenges and technological progress – create the conditions for Bitcoin to grow to the predicted level by 2029.

Tetyana Viktorova