Bitcoin Continues Rise to $100,000 Amid Ethereum, Solana, Dogecoin, Shiba Inu, BNB, XRP, Avalanche Price Rebound

Bitcoin bounced back early Tuesday morning, raising hopes that the symbolic $100,000 mark is within reach.

Over the past 24 hours, Bitcoin’s price has risen 6.8% to $87,600, while Ethereum has gained 3.3%. Many altcoins followed suit. Avalanche rose 8.4%, Dogecoin rose 35.1%, Shiba Inu added 2.5%, BNB rose 1.1%, and XRP saw a bump of 9.9%.

While Trump’s election victory may be the biggest driver for now, it is far from the only factor fueling Bitcoin’s rise.

Behind the scenes, broader trends — ranging from a post-halving supply squeeze to favorable macroeconomic developments — are helping push crypto prices higher.

Crypto insiders believe that these factors, rather than Trump’s victory, are the true long-term drivers behind Bitcoin’s rise.

Trump’s victory is a short-term catalyst, but not a game-changer

Trump’s return to the White House has certainly been a major driver of the past week. The reason? Trump is considered less of a “bad cop” to the crypto community than the Biden administration.

There is good reason for that.

In preparation for this year’s election, Trump became the first presidential candidate to accept crypto contributions. At one point, he even hinted at the possibility of building a federal Bitcoin reserve.

“For too long, our government has violated the cardinal rule that every bitcoiner knows by heart: Never sell your Bitcoin,” he said.

As a counterweight to Biden’s more aggressive regulatory stance, crypto lobbyists have also rallied behind Trump.

Notably, Cameron and Tyler Winklevoss, co-founders of Gemini crypto exchange, contributed $1.6 million in Bitcoin, while Kraken co-founder Jesse Powell donated $845,000 in Ether.

Back in August, BitMEX co-founder Arthur Hayes predicted that a Trump victory could push Bitcoin’s price above $100,000.

“October and November are historically strong months for Bitcoin, especially in the halving year and the year after,” he said, suggesting that a Trump presidency could prompt a “rush of new buyers” that could push Bitcoin “above $100,000.”

Still, Hayes and others believe the election outcome can only affect Bitcoin’s short-term price.

In their view, it is bitcoin’s fundamental and macroeconomic factors — particularly its appeal as a hedge in a high-debt, inflation-prone economy — that will shape its long-term trajectory.

Broader factors behind bitcoin’s rally

Some analysts argue that this rally is driven more by pent-up demand stemming from Bitcoin’s April halving, a pre-programmed reduction in Bitcoin mining rewards.

“Yes, the incoming Bitcoin-friendly administration has provided a recent catalyst, but that’s not the main story here,” Jesse Myers, co-founder of Onramp Bitcoin, wrote on X yesterday.

“A post-halving bubble is the result,” he added, referring to the pattern in which each Bitcoin halving has historically sparked a rally.

Another key factor is Bitcoin’s potential role as a hedge against currency depreciation. Hayes echoes many economists who believe that neither political party has the will to balance the budget.

In August, Hayes said, “Like any politician, regardless of party affiliation or economic persuasion, Harris will instruct Yellen to use the monetary tools available to her to avert a financial crisis.”

It underlines his belief that inflation-driven spending can become a reality regardless of the election result.

Still, Bitcoin must first prove itself as an inflation hedge, because so far it has behaved more like a risk asset – rising and falling in line with investors’ risk appetite.

Wall Street’s Deepening Crypto Band

Another force boosting Bitcoin’s valuation is growing interest from Wall Street.

In recent months, financial giants such as Goldman Sachs and Morgan Stanley have expanded their Bitcoin-related holdings, signaling that institutional players see the cryptocurrency as more than a speculative asset.

According to Matt Hougan, CIO of Bitwise Asset Management, institutional involvement adds both credibility and stability to Bitcoin’s long-term outlook, making it less prone to the extreme volatility seen in previous cycles.

“Institutions are seeing Bitcoin’s transformative potential for certain financial processes, making it not just an alternative asset, but a potential anchor in future portfolios,” Hougan noted recently.

With both political and economic factors in Bitcoin’s favor, the coming weeks could be critical in determining whether the cryptocurrency continues its steady rise.