Bitcoin surged over 33% following Donald Trump’s victory in the U.S. presidential election on November 5, briefly crossing the $90,000 mark on Tuesday. The rally marked one of the most dramatic price movements in the cryptocurrency’s recent history, fueled by optimism around a potential shift in U.S. crypto policy under a second Trump administration.
However, by Wednesday, Bitcoin had pulled back below $87,000 amid broader market sell-offs and growing caution among investors. While the initial euphoria lifted risk assets across the board, analysts warn that short-term profit-taking and macroeconomic uncertainty could temper further gains.
Why Did Bitcoin Rally After Trump’s Win?
The sharp rise in Bitcoin’s price following Trump’s election win reflects growing investor confidence in a more crypto-friendly regulatory environment. During his campaign, Trump positioned himself as a pro-innovation leader, advocating for the U.S. to become the “global capital of crypto.” He also emphasized Bitcoin’s potential as a global reserve currency—a stark contrast to the stricter regulatory stance seen under the Biden administration.
👉 Discover how political shifts are shaping the future of digital assets.
This sentiment was amplified after the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) in February 2025, which opened the floodgates for institutional investment. With Trump’s pro-crypto rhetoric, many investors interpreted his win as a signal of continued deregulation and mainstream adoption.
Core Keywords: Bitcoin, Trump election, cryptocurrency, crypto-friendly policy, spot Bitcoin ETF, Bitcoin price prediction, digital assets, $100K Bitcoin
The combination of regulatory optimism and increased institutional participation created a powerful bullish momentum. As a result, Bitcoin broke through the $80,000 barrier over the weekend before briefly touching $90,000 early in the week.
Is the Rally Sustainable? Market Volatility and Profit-Taking
Despite the impressive gains, signs of short-term exhaustion are emerging. On Tuesday, trading volume spiked to levels comparable to election day, but price action remained range-bound—indicating possible distribution or large-scale profit-taking.
Bitcoin has long been known for its extreme volatility, driven more by speculation than traditional fundamentals. The market's relatively limited liquidity means that large trades by major holders—often referred to as "whales"—can significantly influence price direction, especially during low-activity periods or on smaller exchanges.
Dilin Wu, market research analyst at Pepperstone, noted in an email:
“Trump’s policy proposals remain uncertain until House control and intra-party opposition become clearer. His approach could lead to wider trade deficits and higher inflation over time, which would ultimately weigh on risk assets like Bitcoin.”
Indeed, broader financial markets began to cool down mid-week. Wall Street saw a broad sell-off after repeated record highs, while key Asian equity indices declined ahead of U.S. inflation data. Investors are now closely watching October’s Consumer Price Index (CPI), expected to remain above the Federal Reserve’s 2% target—potentially delaying rate cuts and increasing pressure on speculative assets.
Can Bitcoin Hit $100,000 This Year?
Many analysts believe the $100,000 milestone is within reach. Josh Gilbert, market analyst at eToro, stated in a November 11 report:
“Even at all-time highs, this rally feels like it's just beginning. The underlying momentum is strong and could keep driving prices higher.”
He predicts Bitcoin could reach six figures within months, citing robust demand from both retail and institutional investors. The success of spot Bitcoin ETFs has made it easier than ever for traditional finance players to gain exposure to crypto without holding the asset directly.
However, reaching $100K won’t be a straight upward climb. Markets rarely move in one direction indefinitely. A correction tied to profit-taking or macroeconomic headwinds—even temporary—could slow momentum.
👉 See what’s driving the next leg of the Bitcoin bull run.
Still, the long-term outlook remains positive for many experts. Increased adoption, growing recognition of Bitcoin as a store of value, and favorable regulatory signals from political leaders all contribute to sustained bullish sentiment.
Key Factors Influencing Bitcoin’s Price Trajectory
Several macro and micro factors will shape Bitcoin’s path in the coming months:
- Regulatory Climate: A Trump administration may ease regulations on digital assets, encouraging innovation and investment.
- Institutional Adoption: Spot ETFs have lowered entry barriers; more financial institutions are expected to enter the space.
- Macroeconomic Indicators: Inflation rates, interest rate decisions, and bond yields will continue to affect risk appetite.
- On-Chain Activity: Whale movements, exchange inflows/outflows, and network hash rate provide real-time insights into market sentiment.
- Global Risk Appetite: Equity market performance and geopolitical developments often correlate with crypto trends.
While Bitcoin is increasingly seen as “digital gold,” its price remains highly sensitive to sentiment shifts—especially during periods of political or economic uncertainty.
Frequently Asked Questions (FAQ)
Q: Why did Bitcoin rise after Trump won the election?
A: Investors anticipate a more favorable regulatory environment for cryptocurrencies under a Trump administration. His pro-innovation stance and support for U.S. crypto leadership boosted market confidence.
Q: Is Bitcoin likely to hit $100,000 soon?
A: Many analysts believe so. With strong institutional demand and growing adoption, combined with positive political signals, a move toward $100K is plausible within months—but not guaranteed.
Q: What caused Bitcoin to drop after hitting $90K?
A: Profit-taking by traders, coupled with broader market sell-offs and caution ahead of U.S. inflation data, led to a short-term pullback.
Q: How do ETFs affect Bitcoin’s price?
A: Spot Bitcoin ETFs allow traditional investors to gain exposure without managing private keys. This has increased liquidity and driven significant capital inflows into the market.
Q: Could inflation impact Bitcoin’s performance?
A: Yes. Persistently high inflation may delay Fed rate cuts, reducing risk appetite. However, some investors view Bitcoin as an inflation hedge, which could support demand in the long term.
Q: Should I buy Bitcoin now?
A: Investment decisions should be based on personal risk tolerance and financial goals. While momentum is strong, volatility remains high—always conduct thorough research before investing.
Final Outlook: Bull Run With Bumps Ahead
The post-election surge in Bitcoin highlights how deeply intertwined digital assets have become with global political and economic narratives. While the 33% rally since November 5 reflects strong sentiment, sustainable growth will depend on more than just political optimism.
Fundamental drivers—like ETF inflows, on-chain metrics, macroeconomic trends, and global adoption—will ultimately determine whether Bitcoin can maintain its upward trajectory toward $100,000.
👉 Stay ahead of the market with real-time insights and secure trading tools.
For now, traders and investors should remain cautious amid volatility. Short-term corrections are normal in bull markets, but they don’t necessarily signal the end of the trend. With strong underlying momentum and increasing institutional interest, Bitcoin may still have room to run—even if the road gets bumpy.
As always in crypto: expect surprises, manage risk wisely, and keep a long-term perspective.