A new phase of increase begins as Bitcoin briefly surpasses $90,000, setting a new historical high

According to the Zhitong Finance APP, Bitcoin, the world's largest cryptocurrency, surged to a new high on Tuesday, marking the beginning of a new upward phase predicted by analysts. According to data from Coinbase, the price of Bitcoin briefly broke the $90,000 mark on Tuesday afternoon. On Monday, Bitcoin also recorded the largest single-day increase in its history.

Since the beginning of this year, Bitcoin has risen by 115%, far exceeding the opening price of $42,000 on January 1. The total market capitalization of cryptocurrencies has also surpassed the historical high of $3.1 trillion, breaking the record of approximately $3.07 trillion set in November 2021.

This phenomenon comes as digital assets and the broader stock market are buoyed by the sentiment surrounding Trump's victory in the presidential election. Analysts refer to this phenomenon as the "Trump trade," and they generally believe that Bitcoin and digital assets have become a "faith" investment following Trump's re-election. Julien Auchecorne, head of Auros Ventures, stated on Tuesday, "With the uncertainty of the election removed and driven by positive signals from the U.S., the upward trend in the crypto market appears sustainable."

Exceeding earlier predictions, the S&P 500 index also briefly surpassed the 6,000-point mark for the first time last week, benefiting from the Federal Reserve's moderate monetary policy and a loose interest rate environment. This will lower borrowing costs and inject further upward momentum into risk assets, including cryptocurrencies.

Matt Hougan, Chief Investment Officer of Bitwise, expects Bitcoin to break $100,000 by the end of the year and reach $200,000 by the end of 2025. Other institutions, including Bernstein, a New York investment management and research firm, have also provided similar target forecasts. Meanwhile, Bradley Duke, Bitwise's head in Europe, stated that with the changing political landscape in the U.S., the cryptocurrency industry may enter a "golden age." At least in the foreseeable future, the upward momentum in the crypto market is expected to continue.

All of this aligns with the general market view that Trump's victory will create a favorable investment environment, providing a clear pathway characterized by relaxed regulations and business-friendly policies, which are expected to drive further increases next year. The Trump administration is anticipated to implement relevant regulations for the cryptocurrency market, promote the establishment of Bitcoin reserves, protect the interests of cryptocurrency mining, improve the current regulatory environment, and encourage innovation.

Although the market seems to be in a "sweet spot," risks still exist, including geopolitical risks in the Middle East and Eastern Europe, the expanding U.S. debt, and potential climate disasters, all of which could act as catalysts to disrupt the market. However, for now, Bitcoin seems indifferent to these concerns