Bitcoin to Soar to $120,000 Early Next Year After Trump Picks Pro-Crypto President of US Financial Regulator

Bitcoin surpassed $100,000 for the first time yesterday and is expected to soar to $120,000 early next year following Donald Trump’s election victory in the United States.

The cryptocurrency has soared since the election in hopes that he will fulfill his campaign promise to make the United States the “crypto capital” of the world.

Bitcoin was worth $66,077 before the election and stabilized at $99,395 two weeks later.

Yesterday it broke the $100,000 barrier after Trump announced he would appoint pro-cryptocurrency Paul Atkins as chairman of the US financial regulator, the Securities and Exchange Commission. Trump took to social media to tell bitcoin investors: “You’re welcome.”

IG Markets analyst Tony Sycamore said: “This is likely to be the catalyst for the next wave of impulse buying, taking it to the next stop of $105,000, before $120,000 in 2025.”

One factor that may keep Bitcoin prices high is the fact that supply is limited. There are fewer than 20 million bitcoins and 75 percent are believed to be held by long-term holders, limiting supply.

At the same time, the fees Bitcoin miners receive for using computers to create new coins were reduced by 50 percent in April as part of the halving. This is carried out every four years to reduce the supply of cryptocurrencies entering the market.

Thomas Lee of US investment group Fundstrat Global Advisors told broadcaster CNBC: “Stock markets are concerned because there is a fairly low supply of bitcoin available over the counter.” “So, there is a supply shortage and bitcoin itself is over $100,000.”

Although Bitcoin has more than doubled this year, eToro analyst Simon Peters suggested it still had about a year to go even higher, as Bitcoin moves tend to peak between 12 and 18 months after the “drawdown.” in half.”

“We are still reasonably early in this bull market considering past years and cycles,” he said. However, he warned that Bitcoin could retreat towards the end of the year, before resuming its rise.

“We’ve reached a psychologically important milestone that might cause some people to take some of their chips off the table, feeling like now is the time to rack up some profits.”