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The biggest winner of the US elections was bitcoin, according to the analyst.
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Given the limited supply of bitcoin, he says its price could see high bullish volatility.
There are reasons to expect much higher prices for bitcoin (BTC), according to analyst Sean Brodrick. The rise to new records, which the asset has had since Donald Trump won the elections in the United States last week, is nothing compared to what it predicts.
In his opinion, “the massive Bitcoin rally has not even begun,” as highlighted in a report on the matter. “I’m talking about the next rally driven by massive amounts of purchases by governments, big banks and corporations, as bitcoin becomes a global currency,” he elaborates.
“Donald Trump won the presidential election, but the biggest winner of the election was cryptocurrencies… specifically bitcoin,” he believes. Because? Several actions that the Republican took during his campaign have allowed this.
Trump promised to make the United States “the cryptocurrency capital of the planet,” create a “strategic reserve” of bitcoin for the country, and fire SEC Chairman Gary Gensler for limiting the industry. In addition, his party accepted donations in crypto assets. And launched World Liberty Financial, a DeFi platform.
According to these measurements, bitcoin was the real winner of the electionssays Brodrick. And since the currency has a fixed supply limit of 21 million, it warns that its prices can actually move, due to a matter of supply and demand.
There are 3 forces that enable a rally for bitcoin
For the specialist, there are 3 forces that will drive a great movement for bitcoin in the year 2025. The first is the demand of governments. Today, the reserves in the currency held by these actors are estimated to be 2.7% of the total supply of 21 million BTC.
As seen below, the government with the most bitcoin is the United States, maintaining a holding of just over 210,000 BTC. These holdings come from confiscations. Then, China, the United Kingdom, El Salvador and Ukraine follow.
Trump has said he does not want to sell those holdings, but rather keep them as a national reserve. Furthermore, in the middle of this year, Cynthia Lummis, senator of the Republican Party, presented a bill in Congress for the government to purchase up to 200,000 BTC annually for five years.
“As the United States builds a strategic bitcoin reserve, we can expect other governments to do the same”
Sean Brodrick, market specialist.
Added to this, the second force that the analyst foresees is the demand of companies. It is already planned, for example, that the technology company Microsoft will have a shareholder meeting in December where they will discuss whether they should add bitcoin to their reserves.
“If Microsoft says ‘yes,’ other large corporations are expected to follow suit,” Brodrick warns. Currently, it is estimated that publicly traded companies hold a total of 305,000 BTC, with the majority being managed by a few companies.
Third, seen as another force to the demand of the large banksconsidering that several are already immersing themselves in the market. Quarterly filings show that Goldman Sachs (GS) and Morgan Stanley (MS) bought more than $600 million in bitcoin exchange-traded funds (ETFs) in the second quarter.
“If the government starts building a strategic reserve of bitcoin and especially if corporations start acquiring bitcoin, I would expect the big banks to build up their own bitcoin reserves. And not just ETFs, but real cryptocurrencies.”
Sean Brodrick, market specialist.
As more companies want bitcoin, large banks will have to own it to facilitate transactions, the specialist adds. For this reason, it is expected that the combination of these two forces, added to the interest of governments, will result like a domino of demand. Consequently, expects 2025 to accelerate the rise in its price.
According to his colleague Juan Villaverde, a specialist in the cryptocurrency market, the price of bitcoin will rise to 100,000 dollars (USD) by the end of this year. And it projects that, by February 2025, it will be at USD 125,000.
In this sense, Hectic months could come for the bitcoin market if this scenario is fulfilled, something that goes hand in hand with the expectations of other specialists. Several agree, as reported by NoticiasVE, that its price will reach six figures in this cycle due to how close it is to it.