The cryptocurrency market is once again in the spotlight, as Bitcoin surges toward new all-time highs—briefly reclaiming the $90,000 mark on November 18. Fueled by political developments, macroeconomic shifts, and institutional inflows, the rally has sparked widespread speculation: is this the dawn of crypto’s long-awaited golden age?
The Surge Behind $90,000
Just months after dipping below $40,000 in January, Bitcoin has more than doubled in value. At its peak, it reached $93,000, pushing its market capitalization to $1.8 trillion—surpassing silver to become the eighth-largest asset by market value globally.
According to Ding Zhaofei, Chief Analyst at HashKey Group, this surge reflects growing mainstream acceptance. "Bitcoin is no longer just a speculative instrument—it’s now being discussed alongside traditional assets like gold and equities," he said.
Fueled by post-election optimism and favorable monetary policy, the rally has drawn attention from both retail and institutional investors. Zhao Wei, Senior Researcher at OKX Intelligence Institute, attributes much of the momentum to the U.S. election outcome. "Trump’s pro-crypto stance during the campaign reignited investor confidence," Zhao noted. "This was further amplified by continued inflows into Bitcoin spot ETFs and expectations of Fed rate cuts."
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The “Trump Trade” Effect
A key driver behind the rally is what analysts are calling the “Trump trade.” Following his electoral victory, markets began pricing in a more favorable regulatory environment for cryptocurrencies.
Reports suggest that Trump Media & Technology Group is in advanced talks to acquire Bakkt, a crypto exchange owned by Intercontinental Exchange (ICE). On the same day Bitcoin crossed $90,000, Bakkt’s stock soared 162.46%, while Trump Media rose 16.65%. Coinbase also gained 6.4%, reflecting broad market confidence.
Trump has previously pledged to retain all government-held Bitcoin and even classify it as a strategic national reserve asset—a move that could legitimize crypto at the highest levels of financial policy.
However, not all experts are convinced. Jennifer J. Schulp, Director of Financial Regulation Studies at the Cato Institute, warns that holding volatile assets like Bitcoin on government balance sheets poses significant fiscal risks. Polymarket data suggests only about a 30% chance that such a reserve policy will materialize.
What’s Driving the Rally?
Ding Zhaofei identifies three core factors behind Bitcoin’s resurgence:
- Policy Tailwinds: With Republicans controlling the White House, Senate, and House, legislative progress on crypto-friendly regulations appears more likely. Potential changes include appointing a pro-innovation SEC chair and forming a presidential advisory committee on digital assets.
- Monetary Easing: The Federal Reserve cut rates by 25 basis points in November, increasing liquidity in financial markets. This environment typically benefits high-risk assets like cryptocurrencies.
- Institutional Accumulation: MicroStrategy recently purchased approximately 51,780 BTC for $4.6 billion and plans to raise $1.75 billion through convertible notes to buy even more. Such moves signal strong long-term conviction and help absorb market supply.
Despite short-term volatility, these forces have created a powerful upward momentum—one that may still have room to run.
Will the Bull Run Continue?
Bitcoin has gained over 30% since the election, outperforming even the Nasdaq. But can it sustain this trajectory?
Ding Zhaofei believes it’s too early to call a top. While short-term profit-taking is evident—centralized exchanges saw over 20,000 BTC flow out this week—on-chain data shows new buyers are absorbing sell pressure. As of November 16, short-term holders still enjoy an average unrealized profit of 26%, indicating potential for further upside.
Still, caution remains warranted. Zhao Wei emphasizes that sustained growth depends on how quickly markets digest current news and how swiftly policy changes take effect. "Long-term, Trump’s administration could accelerate regulatory clarity, boosting institutional participation," he said. "But macro uncertainty and crypto’s inherent volatility mean investors must manage risk carefully."
Some forecasts are bold: Ned Davis Research strategist Pat Tschosik sees little resistance ahead, projecting Bitcoin could exceed $120,000 by spring 2025.渣打银行’s Geoff Kendrick goes further, predicting $125,000 by year-end 2024 and $200,000 by end-2025—if pro-crypto policies advance.
A Regulatory Turning Point?
With Bitcoin and Ethereum spot ETFs already approved, many analysts see 2025 as a potential inflection point for broader adoption.
Ding Zhaofei believes unified Republican control could fast-track legislation that brings clarity to areas like token classification, taxation, and DeFi regulation. "We’re moving from chaos to structure," he said. "This transition will inevitably involve industry consolidation—but it will also lay the foundation for sustainable growth."
Two narratives may define the next cycle: RWA (Real World Assets) and PayFi (Payment Finance). Tokenizing real-world assets—from real estate to bonds—could bridge traditional finance with blockchain infrastructure. Meanwhile, PayFi innovations may finally deliver scalable, low-cost global payments.
However, Zhao Wei cautions that global regulatory misalignment remains a challenge. "Without harmonized standards, cross-border compliance will remain complex," he said. Transparency and security must be prioritized to earn trust from traditional finance.
Not All Cryptos Are Created Equal
While Bitcoin leads the charge, the broader crypto market tells a different story.
Gao Chengshi, Executive Committee Member of China Computer Federation’s Blockchain Task Force, stresses that this may be Bitcoin’s milestone moment—not necessarily the entire crypto ecosystem’s. "Bitcoin benefits from fixed supply and full decentralization," he explained. "Its narrative as 'digital gold' continues to strengthen."
In contrast, many altcoins lack similar fundamentals. Projects with weak governance, centralized control, or unclear use cases struggle to gain lasting traction. Market dynamics continue to sort winners from losers—a natural evolution toward stronger consensus.
Even so, Gao acknowledges that underlying blockchain innovations—especially those emerging after Bitcoin—hold long-term promise. "These technologies may not dominate today," he said, "but they’ll shape tomorrow’s digital economy."
Risks Ahead: Volatility, Security, and Skepticism
Despite growing adoption, hurdles remain.
Bitcoin’s price swings remain extreme compared to traditional assets. Regulatory uncertainty persists globally. And cybersecurity threats—such as exchange hacks and smart contract exploits—are ever-present dangers.
Moreover, skepticism endures among traditional investors. Warren Buffett remains a vocal critic, dismissing crypto as lacking intrinsic value.
Yet Gao offers a compelling analogy: "Gold has limited industrial use, yet humanity collectively assigns it immense value. Once a consensus becomes strong enough, it transcends logic." In this light, Bitcoin’s “digital gold” narrative may not be so far-fetched.
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FAQs
Q: Is Bitcoin likely to become part of U.S. strategic reserves?
A: While Trump has proposed it, current odds are low—around 30% according to prediction markets. Implementation would face legal and fiscal challenges.
Q: What role do ETFs play in Bitcoin’s rise?
A: Spot ETFs lower entry barriers for institutional and retail investors, enabling easier exposure and driving sustained capital inflows.
Q: How does Federal Reserve policy affect crypto prices?
A: Rate cuts increase market liquidity, boosting demand for risk assets like Bitcoin. Conversely, tightening cycles tend to pressure prices.
Q: Are all cryptocurrencies equally valuable?
A: No. Bitcoin stands out due to its scarcity and decentralization. Many altcoins lack comparable fundamentals and face higher risks.
Q: Can blockchain technology succeed even if some cryptos fail?
A: Absolutely. Underlying tech—like smart contracts and tokenization—has broad applications beyond speculative coins.
Q: Should I invest in crypto now?
A: Only after assessing your risk tolerance. Crypto offers high return potential but comes with extreme volatility and evolving regulatory risks.
The path forward won’t be smooth—but for those watching closely, the signs point to a maturing ecosystem where innovation, policy, and market forces converge.
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