Many analysts aren’t surprised by the recent price surge of Bitcoin to $80,000, given Donald Trump’s convincing victory in the recently concluded US national elections.

Some market analysts and observers offer even bolder projections, fueled by rumors of a Bitcoin strategic reserve and the possible approval of the Bitcoin Law.

Trading firm QCP is one of those analysts taking a bullish stance on the crypto, predicting that the top digital asset will break $120,000 soon.

QCP cites the administration of incoming President Donald Trump, the plan to create a strategic BTC reserve, and updated US inflation data as critical drivers for the asset’s price.

Favorable Market Conditions Boost Bitcoin Price

Bitcoin’s price surge continues this week, hitting another all-time high of $93,120, boosting the global cryptocurrency market cap to over $3 trillion.

The rally comes as the US government released its inflation data, with headline and core inflation numbers at 2.60% and 3.30%, respectively, in line with expectations.

Also, analysts are confident of a potential 25 basis point rate cut from the December Federal Open Market Committee meeting. Many say that a shift in monetary policy boosts optimism among risk-based assets, including Bitcoin.

$100k To $120k For BTC Possible, Says QCP

In the Twitter/X post, QCP Trading predicts that Bitcoin can hit $100k to $120k. The post added that BTC price action benefits from proposals to create a BTC strategic reserve and the government’s potential shift from gold to digital asset.

QCP: In view of Bitcoin’s impressive rally since the US election, our view is that $100,000 – $120,000 may not be too far off. Trump idea of launching a strategic BTC reserve and rotation from Gold to BTC, provides a strong narrative that keeps BTC prices supported.…

— Wu Blockchain (@WuBlockchain) November 15, 2024

However, QCP cautions the industry about excessive leverage in altcoins. It added that perpetual funding rates have increased between 50% and 100%, primarily due to heavy-leveraged buying.
This scenario increases the risk of a deleveraging event, putting downward pressure on prices.

Other Analysts See Continuous BTC Price Surge

Aside from QCP, several other analysts and financial institutions are examining Bitcoin’s bullish trend. Matthew Sigel of VanEck is also optimistic about the direction of digital asset prices.

Bitcoin’s price has increased by 30% since the elections, and based on VanEck’s proprietary indicators, the trend is likely to continue.

Sigel also noted the market’s favorable sentiment on Bitcoin, thanks to the re-election of Trump and other crypto-friendly personalities. Based on VanEck’s projections, the alpha coin can top $180k by next year.

Rekt Capital echoes VanEck’s outlook, suggesting that the asset has entered a “parabolic upside.” The market analyst further stated that this stage can last up to 385 days, creating plenty of opportunities for traders and investors to profit.

Featured image from Pexels, chart from TradingView

The United States Securities and Exchange Commission (SEC) has approved listing the eco-conscious 7RCC Bitcoin ETF on the NYSE Arca exchange.

This milestone aligns with recent progress from the Commodity Futures Trading Commission (CFTC), which cleared the spot Bitcoin options trading path.

Bitcoin ETFs Gain Traction as Regulators Clear Significant Hurdles

On November 15, the SEC approved a rule change allowing 7RCC to list and trade its Spot Bitcoin and Carbon Credit Futures ETF. This decision comes nearly a year after 7RCC filed its initial prospectus in December 2023. The application underwent four amendments during its review process, which began in March.

The fund aims to allocate 80% of its assets to Bitcoin and 20% to financial instruments tied to Carbon Credit Futures. These futures will be based on indices linked to environmental initiatives, including the European Union Emissions Trading System, the California Carbon Allowance, and the Regional Greenhouse Gas Initiative.

“The Fund will gain exposure to these Carbon Credit Futures only by investing directly in only such futures contracts.
The Fund does not intend to invest in Carbon Credit Futures specifically linked to bitcoin mining or other related processes,” The SEC wrote.

Carbon credit futures are financial tools that allow trading based on the anticipated value of carbon credits. These instruments help manage regulatory risks while supporting environmentally responsible investing. 7RCC stated that Gemini would serve as the custodian of its Bitcoin holdings.

Meanwhile, the SEC’s approval coincides with an announcement from the CFTC’s Division of Clearing and Risk. The regulator stated that it no longer oversees clearing for spot Bitcoin ETFs options. The Options Clearing Corporation (OCC), which handles all equity options clearing and settlement, now takes the lead in this area.

This development signals significant progress for the launch of spot Bitcoin ETF options. Analysts, including Bloomberg Senior ETF Analyst Eric Balchunas, view the CFTC’s notice as a key step forward.

“The CFTC just dropped a notice clearing the way for spot bitcoin ETF options to be listed. This is the second hurdle they needed to clear after the SEC. Ball now in OCC’s court and they are into it, so they’ll probably list very soon,” Balchunas stated.

The approval of the 7RCC Bitcoin ETF and the CFTC’s move highlights growing regulatory support for innovative financial instruments. These developments pave the way for expanded investment opportunities in both cryptocurrency and sustainable markets.

Two prominent crypto personalities—Michael Saylor of MicroStrategy and Sen. Cynthia Lummis of Wyoming—support the call to create a Bitcoin reserve.

In a CNBC interview, Saylor reiterated his bullish take on Bitcoin and suggested that creating a reserve of 1 million Bitcoins could help cut US debt by $16 trillion, or by 45%.

Before Saylor’s comments on the CNBC interview, Rep. Lummis filed a bill increasing the country’s digital asset reserves. The US government will buy up to 1 million Bitcoins over five years as laid out in the Lummis Bill.

Michael Saylor and Lummis believe integrating the top digital asset as part of the reserve can help solve the country’s growing debt woes.

Michael Saylor Says BTC Can Cut Debt By 45%

In an interview, Michael Saylor supported the proposal to accumulate 1 million Bitcoin. He explained that a Bitcoin reserve can help reduce the country’s debt by $16 trillion, or by 45%. Saylor also shared MicroStrategy’s plans, including its target of raising $42 billion to invest in more Bitcoins.

Bitcoin is Manifest Destiny for the United States. My discussion of The Red Wave, MicroStrategy’s $42 Billion Plan, the compelling logic of the Strategic #Bitcoin Reserve, and getting ready for the 100K party, with @MorganLBrennan. pic.twitter.com/fvkwRnCzlU

— Michael Saylor⚡️ (@saylor) November 14, 2024

Saylor is looking forward to the country’s strategic Bitcoin reserve, which a comprehensive plan will soon back. The MicroStrategy CEO’s bullish take on a Bitcoin reserve is partly based on President Donald Trump’s support for the crypto industry.

In a 2024 Bitcoin conference held at Nashville, then-candidate Trump promised to establish a Treasury reserve with 200k Bitcoins. In a Twitter/X post, Saylor mentioned that Bitcoin is US’ “manifest destiny.” He also teased his followers about his company’s $42 billion plan and the road to 100k.

Lummis And The Bitcoin Bill

Lummis is one of the Senate’s vocal crypto supporters. Earlier this year, the Wyoming senator filed a bill authorizing the US government to increase its digital asset reserve. The Lummis bill authorizes the government to acquire up to 1 million Bitcoins in five years. Last Thursday, the lawmaker suggested selling the US central bank’s gold reserves to acquire additional Bitcoins for the government.

If the Lummis bill passes, Saylor estimates that the US government can generate $16 trillion in savings. For Saylor, the best approach to protecting the USD is to end debt. The next best option is to own another capital asset —Bitcoin.

Saylor Highlights The ‘Trump Max’ Scenario

Michael Saylor argues that the acquisition of strategic assets is familiar. He shared that the US government has acquired oil, gold, helium, and grain, which offered trillion-dollar returns.

Saylor also shared his thoughts on the “Trump Max” scenario, where the government will acquire up to 4 million BTC. He estimated that this could bring $81 trillion in returns. Saylor added that the Trump scenario is the most logical approach to addressing the US debt.

Featured image from CNBC, chart from TradingView