The crypto market came to a standstill during the rocket rally that started a week ago after the US elections, although investors can expect it to pick up again.

On Tuesday bitcoin According to Coin Metrics, the price fell 1% to $87,440.88. On Monday, the stock rose more than 10%, reaching an overnight high of $89,623.00. Many investors expect its price to continue to set new records on its way to $100,000 later this year.

Bitcoin has risen more than 26% since Election Day on November 5, when it hit a new all-time high for the first time since March. Ether fell 3% on Tuesday, after gaining 33% in the past week.

“Bitcoin is now in price discovery mode after breaking an all-time high early last Wednesday morning when it was officially declared that Trump had won the election,” said Mike Colonnese, an analyst at HC Wainwright. “The strong positive sentiment is likely to continue through the remainder of 2024 and (we) see the bitcoin price potentially reaching the six-figure mark by the end of this year.”

Crypto investors are cheering President-elect Donald Trump’s promises to make the regulatory environment more supportive and even friendly to crypto companies, which have long struggled with a lack of clarity on the rules of the road.

While bitcoin has long been considered a safe asset in Washington — i.e. not subject to securities laws — the long tail of cryptocurrencies and crypto-related startups operate in a riskier gray area.

“That’s just shifted 180 degrees,” Matt Hougan, chief investment officer of Bitwise Asset Management, told CNBC. “We are now in a positive regulatory environment, we have the tailwinds of that now, and that comes in the case of a market that was already in a bull market… that will push us higher.”

In the crypto market, coins that have soared in the past week hit the brakes on Tuesday, including the memecoin Shiba Inu, which fell 4% after surging 57% last week.

Dogecoin however, was an outlier. It has been one of the biggest winners, up more than 135% since November 5, likely due to its connection to Elon Musk, who helped get Trump elected. The latter was 14% higher.

In the stock market, Coin base And MicroStrategy each retreated by about 6%. On Monday, Coinbase rose 19% to trade above $300 for the first time since 2021, and up about 6% from its year-high.

Traders and analysts agree that last week’s rally is just beginning.

“It looks like there is an air gap between the previous (Bitcoin) all-time highs around $72,000 and $100,000,” Hougan said. “It’s hard to see exactly what would force sellers to enter this market and stop the momentum before we reach that level. Of course, there are no guarantees. You could see a pullback, but we are in a new cycle of the crypto market. … I think we’re right to be optimistic and the bias is still on the positive side.”