Does Trump 2.0 Set the Stage for Bitcoin's Moonshot?

Well, folks, we’ve seen it all play out now. Former President Donald Trump has secured a victory in the 2024 U.S. presidential race, and boy, are things about to get interesting for the world of crypto. If you’ve been holding onto your Bitcoin for dear life (or perhaps hoping for a miracle rally), it might be time to get ready. Trump’s win could be the impetus that drives Bitcoin to new heights—or a ride that keeps everyone on edge. 

But before we dive into what this victory means for the world’s most volatile cryptocurrency, let’s rewind a bit. Bitcoin, as we know it, has never been a stranger to the influence of politics, policy changes, and regulatory uncertainty. And while we’re all familiar with the classic “Bitcoin goes up, Bitcoin goes down” dance, the role of political players—specifically the presidential contenders—adds a new layer of drama. So, what can we expect for Bitcoin prices now that Trump has emerged victorious? Analysts are already chiming in, and the predictions range from sky-high bullish expectations to cautious, "let’s see what happens" sentiments. Let’s break it all down and see where the future of Bitcoin could be headed under Trump’s leadership. 

The Pre-Trump Scene

Before Trump’s triumph today, Bitcoin had already been riding high. Analysts had been cautiously optimistic about the digital asset's potential, with prices hovering around $68,000—down from the seven-month high of more than $73,000. The crypto world had been bracing itself for an election result that could shift the market’s perception of Bitcoin’s future. 

Now, to add some context, let’s take a look at the predictions that analysts were making just before the election, with a particular eye on the two main candidates: Vice President Kamala Harris and Donald Trump. If Harris had won, analysts like Gautam Chhugani from Bernstein had warned that Bitcoin could see a significant drop—potentially testing the floor of $50,000, a price we haven’t seen since February. Harris, known for her more “hawkish” stance on crypto regulation, wasn’t exactly the market’s darling in the eyes of crypto enthusiasts. Many feared that a Harris administration would stifle Bitcoin’s growth with more stringent regulations, creating a bearish outlook for the crypto space. 

On the other hand, if Trump had won (which, well, now he has), the mood was distinctly more optimistic. Chhugani predicted that Bitcoin could soar to between $80,000 and $90,000 over the next couple of months, driven by Trump’s more favorable stance toward cryptocurrencies. Bitcoin, after all, has historically thrived under the idea of a "pro-crypto" president—a position Trump has embraced more openly as his campaign has unfolded.  

What Trump's Victory Means for Bitcoin?

First up: the big bullish call. Trump’s win could send Bitcoin into a bullish frenzy. Why? Well, for one, Trump has long positioned himself as the "pro-crypto candidate." While his earlier years in office didn’t exactly see him embracing Bitcoin with open arms (remember when he was a skeptic?), his campaign has taken a much different turn. Trump has warmed up to the cryptocurrency world, from paying in Bitcoin for burgers and beers at PubKey, a Bitcoin-themed bar in New York City, to racking up endorsements from major crypto figures like Marc Andreessen and the Winklevoss twins, all of whom have championed Bitcoin’s potential.

Under the new Trump administration, expect a continuation of the "crypto-friendly" policies that have been rolling out over the past few years. With less regulatory pressure compared to a Harris-led administration, Bitcoin could thrive in an environment that encourages growth and innovation in the space. Some analysts predict that Bitcoin could surge to $80,000 or even $90,000 as the market reacts to the favorable pro-crypto stance. 

But wait, it gets even better for Bitcoin bulls: Trump’s victory could also pave the way for the further mainstreaming of Bitcoin. With spot Bitcoin exchange-traded funds (ETFs) gaining traction, this digital asset is becoming less of a niche investment and more of a fixture in traditional portfolios. And with Trump’s policies likely to lean toward easing restrictions on Bitcoin and other cryptocurrencies, more institutional investors could be encouraged to dive into the market, fuelling its growth. A price target of $200,000 for Bitcoin by the end of 2025? It’s not out of the question anymore, especially now that Trump’s victory has thrown some rocket fuel into the mix. 

Can Bitcoin Keep Up the Momentum? 

Not everyone is fully convinced that Bitcoin’s rise under Trump will be smooth sailing. While the pro-crypto rhetoric is enticing, there are a few potential bumps on the road. For one, Bitcoin’s price volatility is as notorious as Trump’s Twitter feed—expect some wild swings, especially in the short term. And while Trump’s administration may be more crypto-friendly, Bitcoin has always been susceptible to changes in sentiment, and with the Fed’s rate hikes and global economic pressures, Bitcoin’s price could experience periods of turbulence. It might climb, but could it stay there? That’s the question investors will be watching closely. 

Furthermore, Bitcoin still faces external challenges, such as regulatory battles and increasing scrutiny from lawmakers around the world. While Trump may ease restrictions domestically, the global crypto regulatory environment remains a wildcard. 

As we look to the future, analysts aren’t backing down from their bullish predictions for Bitcoin. Even with all the bumps and bruises along the way, the digital asset is likely to continue its climb toward new highs. Whether Bitcoin will eventually reach the $200,000 mark by 2025 remains to be seen, but if Trump’s presidency provides the environment Bitcoin needs to thrive, it’s definitely within the realm of possibility. The jury’s still out—only time will reveal if Bitcoin can hit these ambitious targets. Stay in the loop on the latest insights; subscribe to our weekly MY-CPE Insights newsletter and don’t miss a beat!