Bitcoin has breached the $100 000 mark for the first time, driven by expectations of a crypto-friendly regulatory environment under Donald Trump’s incoming US presidency.
However, deVere Group CEO Nigel Green predicts a short-term sell-off before Bitcoin rallies further to hit $120 000 in the first quarter of 2025.
“This $100 000 breakthrough was inevitable,” says Green. “However, with such a dramatic rise in a short period, it’s natural that some investors will lock in profits. This likely sell-off will be a temporary pause before Bitcoin builds on its momentum, surging to $120 000 as early as the first quarter of next year.”
The world’s largest cryptocurrency has more than doubled from its 2024 low of $38 505 and surged 45% in just two weeks since Trump’s election win.
“Bitcoin’s extraordinary run comes as markets anticipate that Trump 2.0 will create a more favorable regulatory framework for cryptocurrencies,” Green explains. “Investors are betting on the President-elect’s pro-crypto stance, with policies expected to reduce red tape and promote innovation in blockchain technology.
“Trump’s likely approach to cryptocurrency regulation is already fueling optimism across the market. His administration will almost certainly prioritize policies that encourage adoption and integration of digital assets into mainstream financial systems. We also expect Trump will install a head of the Securities and Exchange Commission (SEC) who is friendly to the crypto industry.”
This political shift is set to amplify Bitcoin’s appeal among both institutional and retail investors. Green highlights that structural changes already underway.
“Major institutional players are increasingly viewing Bitcoin as a core asset in diversified portfolios, spurred by expectations of regulatory clarity. And individual retail traders are embracing the crypto as digital gold – a hedge against inflation and political uncertainty, while also capitalising on its unprecedented growth potential.”
Green bases his forecast that Bitcoin will hit $120 000 within months on several factors. First, the anticipated sell-off is expected to be short-lived, as long-term holders and new buyers step in to capitalize on the temporary dip.
Second, Trump’s economic policies, particularly around promoting technological innovation, are likely to increase Bitcoin’s mainstream adoption and institutional inflows.
Green notes that Bitcoin’s fundamentals remain robust, with growing participation from traditional financial institutions reinforcing its position as a transformative asset class.
“Bitcoin is no longer just a speculative asset,” he explains. “It is a core component of the future of finance, appealing to everyone from Wall Street heavyweights to retail investors seeking to protect and grow their wealth.”