Bitcoin surged close to the $90,000 mark on Monday, reinforcing its position as the leading cryptocurrency. This upward trend follows the November 5 elections, where President-elect Donald Trump expressed strong support for crypto initiatives. Trump’s anticipated favorable regulatory stance is expected to boost Bitcoin ETFs and related stocks like Coinbase Global (COIN) and Robinhood Markets (HOOD). In addition, Bernstein analysts are now recommending increased exposure to the cryptocurrency sector.
As of early Tuesday, Bitcoin was trading around $87,300, after hitting an all-time high of $89,995 on Monday, according to CoinDesk. By Friday at 4 p.m. ET, Bitcoin had risen to $76,783.86, marking a 14.1% increase over four sessions since Election Day.
Bernstein analysts, in a report shared by The Block on Monday, advised investors to consider adding cryptocurrency exposure “as soon as possible.” Leading the analysis, Gautam Chhugani stated, “Don’t resist this wave. Embrace the crypto bull market and invest extensively.” The team suggested that investors hesitant due to regulatory uncertainties should reconsider their stance following the U.S. election results. Bernstein anticipates a more crypto-friendly regulatory environment under Trump’s administration, including a new SEC Chair appointment.
During his campaign, Trump promised to replace SEC Chair Gary Gensler with a pro-crypto leader and establish a national Bitcoin reserve. At a crypto conference in July, Trump vowed to transform the U.S. into the “crypto capital of the world and a Bitcoin superpower.”
Bernstein remains optimistic, maintaining a Bitcoin price target of $200,000 by the end of 2025. Despite Bitcoin reaching new highs, the analysts believe the risk-reward ratio remains favorable for the next year.
Other cryptocurrency experts have set their sights on $100,000 as the next significant milestone for Bitcoin, potentially achievable by year-end. However, new investors should exercise caution. Anthony Yeung, Global Head of Strategic Development at CoinCover, a crypto security firm, warned about the risks associated with increased market participation. “Bitcoin’s volatility attracts new investors, but it’s crucial to understand the risks in any bull market,” Yeung advised. He highlighted the correlation between new market entrants and the rise in malicious activities, urging new investors to stay vigilant as Bitcoin continues to climb.
Bitcoin’s Meteoric Rise
Spot Bitcoin ETFs saw substantial inflows of $1.63 billion during the election week, despite $657.9 million outflows on Monday and Tuesday, according to Farside Investors. BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the charge with $1.25 billion in inflows for the week, adding another $1.114 billion on Monday alone, spearheaded by IBIT’s $756.5 million.
Since their January launch, spot Bitcoin ETFs have accumulated a total of $26.97 billion in inflows, counterbalanced by $20.1 billion outflows from the Grayscale Bitcoin Trust (GBTC). IBIT stands out with $28.14 billion in inflows, followed by Fidelity’s Wise Origin BTC ETF (FBTC) with $10.89 billion.
Pre-market trading on Tuesday saw IBIT and other spot Bitcoin ETFs rise, building on their 13% gain from Monday. These ETFs are trading near record highs, with many surpassing buy zones from their previous consolidations. Overall, spot Bitcoin ETFs have surged approximately 30.5% this year.
Coinbase’s stock saw a slight dip on Tuesday after a robust 20% jump on Monday. Last week, Coinbase shares skyrocketed by 48% to $270.74, nearing a multi-year high. The stock recently surpassed the $283.48 buy point for a 32-week consolidation and has soared about 86% this year.
Robinhood, the crypto-friendly trading platform, experienced a 27.4% increase last week, reaching $30.54—the highest in nearly three years. The stock further climbed 7.4% on Monday before easing slightly in pre-market trading on Tuesday.
Bitcoin mining companies also saw gains, though they slightly pared their increases on Tuesday. Bit Digital (BTBT) surged 26.3% on Monday, breaking the $4.37 buy point after a 20.5% rally last week. MARA Holdings (MARA) jumped 30% on Monday, rebounding above its 200-day line with a 19.5% rise last week. Hut 8 (HUT) also climbed 26%, starting the week strong following a 22.3% gain during election week.
Bitcoin reached a new high on Monday, surpassing its previous March 14 record of $73,798. The cryptocurrency has seen a remarkable 109% increase so far this year.
Meanwhile, Ethereum dipped to $3,270 early Tuesday. It reached $3,441 on Monday, surpassing its October 20 high of approximately $2,750. Ethereum has risen about 43% in 2024, hitting a 52-week peak of $4,090 in March, though it remains below its November 2021 high of over $4,800.
