Bitcoin’s rally has been sweeping the financial world, with prices soaring since Donald Trump’s election victory last week.
BTC rose to nearly $90,000 today, overtaking silver and solidifying its position as the world’s eighth most valuable asset. Crypto experts and professional traders believe the rally is just beginning, with the $100,000 mark set to be seen, driven by a pro-crypto shift in the U.S. government and a wave of new institutional investment.
“This market is starting to understand how dramatic this governance change is going to be,” said Quinn Thompson, founder of crypto hedge fund Lekker Capital. “The U.S. government and regulators are shifting from an anti-crypto stance to a welcoming stance.”
After years of turmoil, including the collapses of FTX and Terraform Labs and legal challenges from U.S. regulators, the crypto industry has faced a long period of uncertainty. Bitcoin ETFs, introduced in January, have sparked renewed interest, but institutional and individual investors remain cautious amid regulatory unknowns. But Trump has vowed to make the crypto market a priority, promising a “strategic Bitcoin reserve” for the government and pledging to appoint pro-crypto regulators, a sharp departure from figures like SEC Chairman Gary Gensler, who have taken a hardline stance against the industry.
Bitcoin has been on a relentless climb since Trump’s victory, surpassing $70,000 before the election was even officially called and surpassing $80,000 on Sunday. This week, Bitcoin has approached $90,000, setting the stage for what some expect to be a record-breaking year for digital assets.
“What we’re seeing is a re-legitimization of crypto as an industry with big support,” said Zaheer Ebtikar, founder of crypto hedge fund Split Capital. “It’s gone from being the big winner of the year to a sector that’s getting serious government attention.”
Joshua Lim, co-founder of trading platform Arbelos, added that Bitcoin is currently in “price discovery mode,” meaning it has moved beyond past price levels and entered uncharted territory, spurring more investor excitement. While institutional investors are largely driving this rally, Lim believes that retail investors will soon contribute to the momentum.
Lim noted that signs of speculative behavior have emerged, with individual traders using high leverage and betting on volatile sectors such as AI-driven memecoins. Perpetual swap funding rates, an indicator of market demand, have climbed to 40-60% compared to the normal 5-10%, signaling much higher participation.
As for when Bitcoin could break the $100,000 barrier, Thompson remains optimistic. “I think we’ll get there by the end of the year,” he told Fortune, adding, “Probably even by the end of the month.”
*This is not investment advice.