Bitcoin skyrocketed as Donald Trump emerged victorious in the US presidential election, creating a “perfect storm” for the bitcoin price in the coming weeks.

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The bitcoin price has broken its previous record high, rising above $75,000 per bitcoin, while other major cryptocurrencies have also soared, led by the meme-based dogecoin that is a favorite of Tesla billionaire Elon Musk, as speculation mounts about his plans to prevent disaster. “financial emergency.”

As traders turn to the Federal Reserve’s interest rate decision this week, bullish bitcoin traders and analysts are betting that the bitcoin price could soar to $100,000 by the new year.

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“Bitcoin is the one asset that would always rise if Trump returned to the White House,” Russ Mould, investment director at AJ Bell, said in emailed comments.

“A brief jump to $75,281 took the cryptocurrency to a new all-time high and prompted traders to speculate when, not if, $100,000 would be breached. Trump has already declared his love for the digital currency and crypto traders now have a new one that can get us even more excited about where the price could go.”

“Bitcoin could reach $100,000 in December or January,” Markus Thielen, CEO of 10x Research, said in an email message.

The bitcoin price rally heading into the election comes after Wall Street giants led by the world’s largest asset manager Blackrock have sucked up huge volumes of bitcoin for their newly minted spot bitcoin exchange-traded funds (ETFs).

“We retested the ETF accumulation trend against potential price ranges, suggesting that a $100,000 bitcoin is entirely possible by the time the 47th US president heads to the Capitol for inauguration on January 20, with ETFs at around 1.1 million bitcoins,” says Fadi Aboualfa. , head of research at crypto custodian Copper.co, said in emailed comments.

“For bitcoin, it’s worth remembering that Trump experienced not one but two all-time highs during his 2016-2020 presidency. However, these gains came against the backdrop of a weakening dollar, in contrast to today’s stronger dollar environment.”

Bitcoin and crypto market watchers also pointed to options data suggesting there is a 15% chance the bitcoin price will reach $100,000 in early 2025.

“The options market still sees a 15% chance that Bitcoin will cross $100,000 by the end of the year, highlighting significant optimism in the longer-term market trajectory,” said Nick Forster, founder of decentralized finance protocol Derive, in an email comment.

However, others warned that a bitcoin price correction could occur this week as over-enthusiastic traders retreat from their post-election optimism.

“A sharp price correction is expected late this week or early next week,” Arthur Azizov, the CEO of crypto payments company B2BinPay, added that Thursday’s Federal Reserve interest rate announcement is expected to drive further price volatility.

“The bitcoin price chart shows significant unsecured liquidity below the current price, while the liquidity above has already been absorbed, indicating that downward movement is necessary to support sustainable future growth. By the end of the year, we expect the value of bitcoin to will be between $80,000 and $90,000, with $100,000 remaining an unlikely target under current conditions.”

The crypto market has been soared by the meme-based dogecoin, a tongue-in-cheek bitcoin rival embraced by billionaire Elon Musk and accepted as payment by his companies Tesla and SpaceX.

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“Dogecoin rose nearly 55% from the Nov. 3 low to Wednesday’s high, fueled by Trump’s victory and anticipation surrounding the election results,” Alex Kuptsikevich, FxPro’s chief market analyst, said in an emailed commentary.

“In addition to the general positivity for cryptocurrencies, speculators are betting on Musk’s potential position in the new administration. The Tesla founder and head of X (formerly Twitter) has maintained the recognition of one of the first meme coins for years.”

In recent weeks, Musk has defended the so-called Department of Government Efficiency, which he has dubbed Doge — a nod to the Shiba Inu Doge meme also associated with the Dogecoin cryptocurrency — and has led to wild, semi-serious speculation that Musk could express. Doge in the Treasury.”

“I met Elon and we spent two hours together and I told him we were going to create the Doge Department,” Howard Lutnick, the CEO of Wall Street giant Cantor Fitzgerald, who is also leading Trump’s transition team, told investors and investors. YouTuber Anthony Pompliano last week.

“We’re going to take the waste out of our $6.5 trillion budget and then we’re going to balance the budget… we have offices that we’re not using, we have procurement waste on a massive scale and I mean massive scale,” said Lutnick, who claims to have hundreds of millions of dollars exposed to bitcoin, adding: “someone has to have the guts to do it.”