Is Bitcoin’s Post-Election Surge Losing Steam?

From November 4 to November 22, Bitcoin experienced an electrifying surge, skyrocketing from $67,000 to over $99,000. The pro-crypto sentiment was at an all-time high, with investors euphoric about Bitcoin’s future potential. Breaking through the $100,000 barrier seemed inevitable. However, the last few days have brought an unexpected pullback, with Bitcoin now stabilizing around $93,000.

Does this mean the party’s over for Bitcoin? Not necessarily. While the rapid rise may have been too fast to sustain, there’s still significant upside potential as we approach 2025. Let’s dive into the factors at play.

Bitcoin Psychology: A Market Driven by Sentiment

Understanding Bitcoin often requires more psychology than economics. Market sentiment plays a crucial role in shaping its price movements. Tools like the Crypto Fear and Greed Index highlight how investor emotions oscillate between extreme fear and greed—sometimes within the same day.

Currently, the psychologically critical $100,000 level is the center of attention. Historically, profit-taking has been a predictable response whenever Bitcoin nears major price milestones. With Bitcoin surging more than 40% post-election, a pullback was almost inevitable.

The $100,000 mark isn’t just a round number; it’s a milestone with real implications. At this level, Bitcoin would achieve a $2 trillion market cap—a distinction shared by only a handful of companies, including tech giants like Apple and Microsoft. Bitcoin recently surpassed Meta Platforms in market value and is closing in on Alphabet (Google’s parent company).

This raises an important question: Is Bitcoin truly worth more than some of Silicon Valley’s biggest names? For now, investors appear to be pausing to assess its long-term value.

Catalysts That Could Propel Bitcoin Higher in 2025

Looking ahead, several factors could drive Bitcoin’s price to new heights:

The Influx of Capital into Spot Bitcoin ETFs
Spot Bitcoin ETFs continue to attract astonishing amounts of new money. The iShares Bitcoin Trust recently surpassed $40 billion in assets under management—a milestone the iShares Gold Trust took nearly two decades to achieve. This flood of institutional capital is a strong indicator of growing confidence in Bitcoin.
Pro-Crypto Policies Under a New Administration
The incoming U.S. administration could prove to be a game-changer for Bitcoin. President-elect Donald Trump has already indicated plans to remove SEC Chairman Gary Gensler—an outspoken critic of cryptocurrencies—from office in January.Beyond personnel changes, Trump’s campaign promises include pushing for pro-crypto legislation and even creating a strategic Bitcoin reserve. The latter, if realized, would involve the U.S. government purchasing 1 million Bitcoins over five years, adding significant upward pressure on the market.
Continued Adoption and Integration
Bitcoin’s adoption continues to grow as more institutions and nations recognize its value as a store of wealth. Combined with its deflationary nature, Bitcoin’s scarcity ensures a long-term upward trajectory.

The Best Way to Invest: Go Straight for Bitcoin

Billionaire investor Mike Novogratz, CEO of Galaxy Digital, advises keeping things simple: focus on “straight Bitcoin.” Whether you’re buying directly on a cryptocurrency exchange or through a spot ETF, staying exposed to Bitcoin itself is key.

Investing in Bitcoin proxy stocks—like MicroStrategy, Coinbase, or mining companies—might seem tempting, but they add unnecessary layers of complexity. If your goal is to ride Bitcoin’s rally, staying direct is the safest and most effective approach.

Final Thoughts: Buckle Up for a Volatile Ride

Bitcoin’s journey to $100,000 may not be as smooth as enthusiasts hope. Historically, Bitcoin’s path has been marked by extreme volatility, and breaking this key psychological and technical barrier will likely come with turbulence.

As we approach 2025, the potential catalysts for Bitcoin’s growth are undeniable. The question is not if Bitcoin will resume its upward climb, but how fast and far it will go. So, buckle up, hold on, and get ready to enjoy the ride.

Read more about Cryptos to Watch in 2025