University of Sussex Professor Carol Alexander forecasts a record-breaking rise for Bitcoin, but warns of potential risks.
A Bullish Forecast for Bitcoin
As Donald Trump prepares for his return to the White House, a leading expert in cryptocurrency markets is predicting that Bitcoin (BTC) could soar beyond $100,000 before Trump’s inauguration on January 20, 2025. Professor Carol Alexander, from the University of Sussex Business School, has been closely monitoring Bitcoin’s price movements since 2021, making highly accurate forecasts along the way.
Rising Bitcoin and Other Cryptos
Professor Alexander believes the recent surge in Bitcoin’s price, following the US election, is just the beginning of an unprecedented bull run. This, she asserts, will be driven by increasing demand from both retail and institutional investors. She also expects other cryptocurrencies, including Ether (ETH) and Dogecoin (DOGE), to follow suit, with Dogecoin’s price being further influenced by its ties to key Trump ally Elon Musk.
Reaffirming the $100k Prediction
“I stand by my earlier prediction that Bitcoin will hit $100k before Trump takes office,” said Professor Alexander, who does not hold Bitcoin herself. She initially made the forecast in January 2024, suggesting that the price could reach such heights by the end of the year, contingent on efforts by market players like Blackrock and Fidelity to reduce market volatility. As of now, she is reaffirming her prediction, though with caution.
The Impact of Deregulation
“This bull run will drive increased adoption of Bitcoin, but this growth comes at a cost,” Professor Alexander warns. “It will be driven by failing regulations, leaving behind hidden risks that are being overlooked as the US Securities Exchange Commission (SEC) steps back from regulating unregistered exchanges.”
Past Predictions and Accuracy
Professor Alexander has been accurate in her past predictions. In 2022, she predicted that Bitcoin would drop from $50k to $10k, although it ultimately fell to around $14k. In 2023, she forecasted a rally to $50k, with the price reaching $44,700 by December. By January 2024, she again predicted a summer peak of $70k, followed by a year-end rally to $100k.
Over $400 Billion Flows Into Crypto
Since Trump’s election, over $400 billion has poured into the cryptocurrency market. This influx is likely driven by expectations of a more deregulated environment under his administration, a shift that could benefit high-frequency traders but put retail investors at a disadvantage.
Professor Alexander’s Research and Advocacy
As the head of the University of Sussex’s Quantitative FinTech group, Professor Alexander’s research focuses on Bitcoin price formation and the dynamics of centralized and decentralized crypto markets. She is a strong advocate for greater regulation within the industry to protect everyday investors.
Trump’s Potential Impact on Bitcoin Mining
Professor Alexander further notes, “Trump’s administration is likely to support Bitcoin mining by creating a national Bitcoin reserve and promoting fossil-fuel-based mining operations. Additionally, he has signaled plans to remove SEC Chair Gary Gensler, who has been a proponent of stricter regulations. This move could pave the way for less oversight in the crypto space.”
Elon Musk’s Influence on Crypto Prices
The role of Elon Musk in driving crypto price fluctuations is also of concern to Professor Alexander. “Musk’s influence on social media can create speculative bubbles. His infamous ‘Doge Barking at the Moon’ tweet in 2021 caused the Dogecoin price to surge from 5 cents to 60 cents, only for it to crash back down to around 20 cents,” she explains.
The Future of Bitcoin and Cryptocurrency
As the crypto market continues to grow and evolve, Professor Alexander’s insights into Bitcoin and the broader digital currency landscape remain invaluable in understanding both its potential and the risks associated with this volatile sector.
