itcoin has further continued its rally to an extended new high of $99,502 on November 22nd and is currently inching closer to the psychologically important $100,000 level. At the time of writing, Bitcoin trades at $98,471 representing a 2.15% increase from the previous day and up 12.95% this week.
While cryptocurrency has gained more value and witnessed increased trading volumes, analysts say this is due to positive political conditions that are currently prevailing in the U.S.
Political Factors of Bitcoin Growth
The recent victory of Donald Trump in the election made crypto investors highly optimistic as his administration is likely to bring in a crypto-friendly regulatory regime, which would make Bitcoin even more attractive to other industries. Moreover, under the new administration, some new legislative laws including the Bitcoin Bill and Pennsylvania's Bitcoin Strategic Reserve Act will be in full effect.
Future Predictions and Regulatory Environment
According to Bernstein, Bitcoin could reach $200,000 in 2025, $500,000 in 2029, and $1 million by 2033. This goes in line with the projection made by Cathie Wood for a $1 million valuation by 2030.
The total market capitalization of the market has touched over $1.9 trillion, and with Bitcoin accounting for 56%, the general sentiment is very bullish, representing Bitcoin as a key asset. While some altcoins are failing to gain or even maintain momentum, some coins have gained relative to Bitcoin. Solana reached an all-time high of over $260, and XRP leapt 25% to $1 regardless of its issues with regulators at the moment.
Besides that, the fact that SEC Chair Gary Gensler will resign from office is another reason for Bitcoin and crypto in general to be optimistic. The man was infamous because of his tough position on cryptocurrencies, and speculations about his successor might give way to a friendly regulatory environment for cryptocurrencies.
