In the wake of Donald Trump’s triumphant return to the presidency, bitcoin has entered uncharted territory, notching fresh all-time highs and seemingly on a relentless march toward the psychologically significant $100,000 level. The euphoric price action, coming on the heels of a Fed rate cut and renewed appetite for risk assets, has the hallmarks of a full-fledged bitcoin bull run.
Bitcoin Brushes Up Against $80,000
After several attempts to solidify its footing above $76,000, bitcoin finally burst through that stubborn resistance level on Thursday, coming within a whisker of tagging $77,000 before a slight pullback heading into the weekend. At last check, BTC was changing hands at $76,158, up 1.45% on the day. From a bird’s-eye view, bitcoin is now just 0.9% away from its previous zenith of $76,900, hit less than 24 hours prior.
The broader digital asset space participated in the rally, with the aggregate crypto market cap swelling by nearly 4% to $2.9 trillion. Cardano’s ADA token was a notable standout, rocketing 16% higher to $0.43. Meanwhile, the Solana juggernaut showed no signs of slowing down as SOL pierced the $200 mark for the first time since the depths of the bear market last March.
Traders Take Aim at $100,000 Bitcoin
With the bulls firmly in the driver’s seat and the path of least resistance pointing squarely higher, talk among traders has naturally gravitated to the next major upside target for bitcoin’s price. According to Alex Kuptsikevich, senior market analyst at FxPro, $100,000 is now firmly on the radar.
We stick to the idea that the new highs have triggered a powerful new growth wave with the potential to rise to $100-110K within 2-3 months without any significant shakeout.
— Alex Kuptsikevich, FxPro
However, Kuptsikevich did caution that the road to six-figure bitcoin is unlikely to be a straight line. A period of consolidation or a minor pullback could be in the cards before the flagship cryptocurrency is ready to tackle that key psychological barrier.
Record Inflows for Bitcoin ETFs
While spot demand has been the driving force pushing bitcoin higher, action on the ETF front has added more fuel to the bullish fire. Data from CoinDesk Indices reveals that bitcoin ETFs listed in the U.S. registered a record $1.38 billion in net inflows on Trump’s victory day, with the bulk of fresh capital flowing into BlackRock’s IBIT product. Cumulative net inflows for all crypto ETFs topped $25 billion for the first time ever.
Ether ETFs also benefited from the risk-on sentiment, luring in $78 million as the DeFi and Web3 growth narratives began to percolate again. The second-largest cryptocurrency by market cap soared 10% on Thursday, leaving bitcoin in the dust, at least temporarily.
Solana, Cardano in Beast Mode
While the marquee tokens grabbed most of the headlines, the real stars of the show were alt-coins like Solana and Cardano. ADA scampered 11% higher on a week-over-week basis as investors wagered that Cardano’s slow-but-steady approach to development would eventually pay dividends. ADA is one of the top performing major alts this year, more than quintupling in value year-to-date.
Never one to be overshadowed, Solana went on an absolute tear following the election, with SOL tacking on a scorching 17% over the past seven days. On several trading metrics, Solana is starting to gain ground on its larger rivals.
A look at the SOL/BTC chart reveals the beginnings of a potential trend reversal after months of underperformance. The SOL-BTC ratio, which measures SOL’s performance in bitcoin terms, has broken out from a consolidation pattern that frequently portends a sharp move higher. Bulls will be eyeing a run toward 2021 highs.
A New Crypto Cycle?
With the total crypto market capitalization on the verge of bursting through $3 trillion and mainstream adoption accelerating, the foundations are being laid for what could be the most explosive bull run yet in digital assets. As bitcoin knocks on the door of $80,000 en route to a possible six-figure print, capital is likely to trickle down to large caps like Ethereum and Solana, before spreading further out on the risk curve.
To be sure, there are potential headwinds that could derail the party. Uncertainty around US fiscal and trade policy under a second Trump administration is one key risk factor to keep an eye on. Any aggressive moves on tariffs or an unexpected hawkish pivot from the Fed could be the pin that pops the everything bubble. For now, the combination of easy money policies and a seemingly teflon-coated risk trade have created a compelling case for significantly higher crypto prices in the months ahead.
