Bitcoin is approaching $90,000 for the first time ever

Bitcoin was trading just shy of $90,000 on Monday evening after breaking through $80,000 just a day earlier.

According to Coin Metrics, the flagship cryptocurrency was last up 12% at $89,100. Earlier on Monday, it rose as high as $89,623.00. Many investors expect the price to rise to as much as $100,000 this year.

“Bitcoin is now in price discovery mode after breaking all-time highs early Wednesday morning when it was officially declared that Trump won the election,” said Mike Colonnese, analyst at HC Wainwright. “The strong positive sentiment is expected to continue until the end of 2024 [we] We expect Bitcoin prices to potentially reach the six-figure mark by the end of this year.

Crypto investors have cheered President-elect Donald Trump’s promises to make the regulatory environment more supportive and even friendly for crypto companies, which have long struggled with a lack of clarity in the rules of the road.

While Bitcoin has long been considered a safe asset in Washington – meaning it is not subject to securities laws – the other cryptocurrencies and crypto-related startups operate in a risky gray area.

“This has just shifted 180 degrees,” Matt Hougan, chief investment officer of Bitwise Asset Management, told CNBC. “We’re now in a positive regulatory environment that’s giving us tailwinds, and that’s coming in the case of a market that was already in a bull market… that’s going to push us higher.”

ether traded 5.8% higher on Monday evening. Payment token XRP rose almost 4% and the token is linked to a decentralized finance project Polygon increased by more than 4%. Dogecoin was one of the biggest winners – likely due to his connection to Elon Musk, who helped get Trump elected. It is up 38%.

On the stock market, Coinbase And Microstrategy rose by around 3% and 5%, respectively, in extended trading. In Monday’s regular session, Coinbase rose 19% to trade above $300 for the first time since 2021. The price is now around 6% below its peak this year.

Traders and analysts agree that this rally is just beginning.

“It seems like there is an air gap between the previous one [bitcoin] “It’s hard to see exactly what would compel sellers to enter this market and stop the momentum before we reach that level.” Of course, there are no guarantees. There have been setbacks, but we are in a new crypto market cycle. … I think we are right to be optimistic and that the trend is still upward.”