By Michael Scott
Bernstein analysts spur fears of missing out on Bitcoin investment as price discovery firmly to the $200,000 price level.
While it is a week since Donald Trump emerged victorious in the US election, the effects are playing out as Bitcoin leads altcoins to realize impressive gains. The crypto assets have regained the uptrend trajectory, with $800 billion added to lift the total market cap to over $3.2 trillion.
Bitcoin Gains as Crypto Reap Bullish Steam
Bitcoin overcame the turbulent start of Q4 to garner bullish steam, which elevated its price and set a new peak daily. The solid run to set a new peak at $93,477.11 on November 13 positions Bitcoin squarely into the post-election bull run, where altcoins have attained double-digit gains.
Bernstein analysts attribute the Bitcoin and Dogecoin run to new all-time highs to Trump, who emerged as the self-proclaimed ‘crypto choice. The uptrend has seen Dogecoin set new all-time highs in three years as Bitcoin surged above the $91,000 threshold.
Bernstein analysts predict sustained gains in the crypto market, anticipating favourable regulatory development under Trump. As such, the team considers Bitcoin to be on course to trade above $200,000, fueled by strong institutional adoption and retail interest.
Despite Bitcoin setting new peaks daily, current profit-taking levels appear modest. Such indicates the market is maturing for stable price expectations. The ongoing bull run has seen the crypto market cap surge past $3 trillion.
Bitcoin witnessed a superb run last week, setting a new peak on Wednesday, November 13, at $93,477.11 per CoinGecko data. Bitcoin would hover above $90,000 only to suffer a temporary pullback to $87,000 before staging a comeback above $91,000 by Saturday morning.
Altcoins Ride High with Double-Digit Gains
While Bitcoin hardly matched the wild rally realized by memecoins and altcoins, BTC registered a 2% intraday gain to exchange hands at $91,320.06. The gain has seen Bitcoin trade in a range, setting a floor at $88,774.43 and a peak at $92,653.10 per CoinGecko data. The Bitcoin surge has spurred an upward trajectory among altcoins, including XRP, Cardano (ADA), Hedera (HBAR), Tron (TRX) and Solana (SOL) joining Stellar (XLM) to post double-digit gains in the past seven days.
BTC has weathered the calls for caution by some analysts to realize 35.4% gains in the past 14 days. Some analysts indicated that $90,000 would serve as the barrier before Bitcoin retreats below $80,000. A look at the daily chart shows that Bitcoin decided differently to reach fresh new highs above the threshold.
While the $93,477.11 now stands as the new all-time high, most analysts believe BTC is not yet done. Bernstein analysts urge investors to acquire everything they can since the crypto market is locked within the bull market.
Bernstein’s senior analyst, Gautam Chhugani, forecasts more gains for digital assets and urges immediate investment in crypto. Chhugani and the team of analysts cite a more crypto-friendly US under Trump’s administration.
The analysts consider entry into the crypto market to be timely, expecting new Securities and Exchange Commission (SEC) leadership. Notably, analysts note that the aides in Trump’s transition teams have issued explicit pro-crypto stances. Bernstein considers the price target for BTC to be firmly within the bullish zone, with $200,000 a possibility by 2025.
Promising Outlook for Bitcoin
Bernstein’s bullish outlook is echoed by Bitfinex analysts, who are confident that Bitcoin has already entered uncharted territory. Bitcoin’s uptrend contrasts with Bitfinex’s earlier calls for consolidation to precede further upward movement.
Bitcoin appears to be riding on the robust foundation of renewed retail and institutional demand. These factors underscore the price discovery in new territory. Bitifinex analysts indicated that despite Bitcoin hitting several new picks, the profit-taking appears relatively modest, thus a bullish signal.
The analysts observe that the present profit-taking is modest relative to the March ATH when the realized profits hit $3.1 billion. Such reflects the maturing market and underscores the fair value expectations. The analysts cite the inflows into the spot Bitcoin exchange-traded funds (ETFs), suggesting the immediate outlook appears promising.