Bitcoin resumed its upward trajectory on Tuesday, reigniting its strong postelection rally with a 2% increase. This surge followed a brief pause, with prices edging close to the $90,000 mark which is a key milestone for investors as Bitcoin continues its potential path toward the much-anticipated $100,000 level later this year.
Bitcoin’s price recently touched a peak of $90,036.17 before slightly retreating, reflecting sustained positive sentiment among investors. Following a 33% increase since Election Day on November 5, Bitcoin has repeatedly broken new records. Analyst Mike Colonnese of H.C. Wainwright noted, “Bitcoin is now in price discovery mode after breaking through all-time highs early last Wednesday morning when it was officially declared that Trump won the election,” and he foresees the cryptocurrency potentially reaching six figures by year-end.
The broader crypto market paused briefly on Tuesday, with other leading cryptocurrencies like Ether dipping by 1% after a 28% rise in the previous week. Across the market, investors remain optimistic about the impact of Trump’s supportive regulatory stance on the crypto industry, which has long navigated regulatory ambiguity. Trump’s administration is expected to foster a more “crypto-friendly” environment, giving a notable boost to the industry’s outlook.
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, highlighted this shift, saying, “We’re now in a positive regulatory environment…in a market that was already in a bull market…that’s going to push us higher.” This statement underscores the alignment between favorable regulatory tailwinds and the ongoing crypto bull cycle, further boosting confidence in Bitcoin’s future trajectory.
Despite the market’s slight pause, certain cryptocurrencies have demonstrated resilience. Dogecoin, propelled in part by Elon Musk’s connection to the Trump administration, surged over 125% since Election Day and gained an additional 17% on Tuesday. However, other popular tokens like Shiba Inu experienced a 4% dip following a 57% rise over the past week.
In traditional markets, crypto-adjacent companies like MicroStrategy also posted gains, rising by nearly 5%, while Coinbase pulled back by 1.5% after a recent 19% surge. Analysts remain optimistic, with many agreeing that Bitcoin’s recent rally represents the early stages of a larger trend.
Hougan suggested that Bitcoin’s next target may be as high as $100,000, adding, “It does seem like there’s an air gap between the previous [Bitcoin] all-time highs around $72,000 and $100,000.” Although there may be occasional pullbacks, Hougan emphasized that the market’s momentum appears bullish.