Short Call: As Bitcoin Sprints Toward $100,000 Milestone, Trump Promises to Set Crypto Free from Regulatory Shackles

While the equity market takes a leisurely stroll toward modest near-term returns, Bitcoin just sprinted through one of its best months this year, leaping nearly 40 percent in November.

Bitcoin enjoyed a stellar month of November, surging nearly 40 percent as Donald Trump's return to the US presidency bodes well for the crypto world.

Here's the kicker: Trump has a plan to federalize the 208,109 Bitcoins currently in federal custody, turning them into a strategic national Bitcoin stockpile. That's over 1 percent of the world's Bitcoin supply, currently valued at a jaw-dropping $20 billion.

On the campaign trail, he's been positioning himself as the crypto industry's saviour, promising to bring it out of the shadows of unclear regulations and the SEC's heavy-handed enforcement antics under Chair Gary Gensler.

Crypto pundits are popping champagne bottles, predicting Bitcoin will soon hit the $100,000 milestone. Riding these tailwinds, Jefferies' Christopher Wood's global portfolio is easing up with a 10 percent allocation to Bitcoin ETFs.

His advice? Not to try and trade these positions, most particularly in the pension fund portfolio. Still, for those with a more tactical focus, Wood suggests cashing in some Bitcoins around the $150,000 mark since his base case is that the crypto will rally three times in this post-halving cycle since the trend has been for the capital gains on holding it to more than halve following each halving cycle. A halving cycle is where prices for Bitcoin correct to around half of its recent highs over a period of time following which it sees a retracement towards higher levels.

Bitcoin's halvings have a history of fueling massive gains. After the first halving in November 2012, Bitcoin skyrocketed 90x in 12 months. The second halving in July 2016 saw a 30x jump in 18 months.

The third halving in May 2020 brought a 7.5x rise in 11 months, eventually hitting a record $68,992 in November 2021, marking an 8x gain in 18 months. Since the most recent halving in April 2023, Bitcoin has already climbed 54 percent to a high of $98,450.

With bullish trends in Bitcoin are now making it hard for investors to ignore it, Trump’s mainstreaming push is giving the crypto an undeniable spotlight. But hold your golden horses—Wood warns against swapping gold for Bitcoin just yet. Instead, think of it as your digital alternative worth a shot. One that is worth giving a try.