New directions in U.S. economic policy have led to analysts’ prognostications for a massive boost in Bitcoin market capitalization that could reach up to $10 trillion. In fact, optimism is largely founded on the administration’s current friendliness toward cryptocurrencies.
Standard Chartered has projected the global crypto market will expand to $10 trillion by the end of 2026, while the price of Bitcoin may go up as high as $200,000. Analysts at the bank believe that supportive changes in regulations will largely drive this growth.
Some of the pro-crypto initiatives taken by the administration include the establishment of a “crypto working group” and the appointment of industry-friendly officials to key positions. This is likely to create a more accommodating environment for cryptocurrency development and integration.
Some, however, have cautioned that fast growth in the crypto market is going to end in speculative bubbles. It has been noted by Elliott Investment Management that the government’s encouragement of cryptocurrencies might actually be creating a bubble in the market to be followed down the line by severe financial turmoil when it pops.
Bitcoin trades at about $97,840 as of February 6, 2025, showing a minimal drop of 0.55% from the close of the previous day. Trading has gone to a high of $99,004 and to a low of $96,148 within the day.
Overall, even though the present government is encouraging with its crypto-friendly policies, the cryptocurrency market, as of now, still presents a volatile nature and riskiness that needs cautious approaches according to experts.
