Bitcoin continued its remarkable ascent on Thursday, reaching an all-time high of $98,367 during European trading hours, according to Reuters. This surge, fueled by the recent Republican victory in the US elections, has seen Bitcoin gain nearly 30% in the past two weeks, bringing it closer to the $100,000 milestone.
Igor Bershadsky, co-founder of Phron AI, commented, "As things stand, it's highly probable that Bitcoin will hit the six-figure mark soon. After that, we might see a period of sideways movement due to psychological resistance among investors experiencing this level for the first time. However, I anticipate it could reach between $100,000 and $120,000 by year-end." The recent upswing is attributed to various factors, including the US elections and a more crypto-friendly stance expected in the coming years, which has instilled confidence in crypto assets among investors.
Experts note that Bitcoin's recent price surge reflects its growing mainstream acceptance and the increasing adoption of cryptocurrencies worldwide, particularly in the UAE. Seyed Mohammad Alizadehfard, co-founder and group CEO at Phoenix Group, stated, "Despite potential volatility, Bitcoin and cryptocurrencies offer robust investment opportunities for both institutional and retail investors. By 2025, we expect new highs for Bitcoin and cryptocurrencies, driven by rising consumer confidence and a more supportive regulatory environment in the US."
Reaching the $100,000 mark would push Bitcoin's market value above $2 trillion. Shivam Thakral, CEO of BuyUcoin, highlighted the launch of BlackRock's IBIT option, which attracted significant interest with 73,000 contracts traded in the first hour. He added, "Investors are optimistic, aiming for as high as $200,000 in the coming months, as institutional confidence in Bitcoin continues to grow."
The cryptocurrency's price has more than doubled this year and risen about 40% since Trump's election victory. Tony Sycamore, an IG Markets analyst, noted, "While Bitcoin is now firmly in overbought territory, it is being pulled toward the $100,000 level." Over $4 billion has flowed into US-listed Bitcoin ETFs since the election, with BlackRock's ETF options debuting strongly, particularly call options, which bet on price increases.
Anish Jain, founder and CEO of WadzChain, emphasized, "The cryptocurrency revolution is far from over. Bitcoin's recent surge underscores the resilience, value, and growing adoption of decentralized digital assets." Experts believe this rise signals the maturation of the cryptocurrency market, the integration of blockchain technology into mainstream finance, and a shift towards alternative assets globally.
Jain added, "With institutions, businesses, and governments recognizing Bitcoin as a store of value, we are witnessing a significant transformation in how people perceive money, wealth, and economic systems." Bitcoin's price surge is not just speculative; it reflects deepening trust in its scarcity model and decentralized nature. "As the world faces inflation and economic uncertainty, Bitcoin offers a hedge against traditional financial systems prone to volatility. With recent halving events and growing institutional interest, Bitcoin is increasingly fulfilling its role as 'digital gold,' providing security and long-term value," Jain said.
Gracy Chen, CEO at Bitget, believes institutional involvement remains the main driver behind Bitcoin's rapid rise. "We've seen substantial net inflows into Bitcoin ETFs this week. By Wednesday, Bitcoin ETFs had net inflows of $1.8 billion. MicroStrategy purchased 51,000 Bitcoin last week at $88,617 each and plans to raise $2.6 billion to continue buying Bitcoin. Well-known mining companies are issuing $850 million in convertible bonds to buy Bitcoin. The massive buying power of traditional funds has rapidly driven up Bitcoin's price," she explained.
Open interest in Bitcoin contracts has surged to $63 billion, with a daily increase of $6 billion, drawing significant speculative capital into the market. Bitcoin's implied volatility (IV) has risen to 60, indicating higher potential for large market fluctuations. "Short-term capital tends to lock in profits, which could lead to significant price swings around the $100,000 mark," Chen noted.
Reaching $100,000 could act as a psychological barrier, prompting investors to reassess their positions and potentially leading to a sell-off, similar to other asset classes when significant round numbers are breached. "If Bitcoin breaks through $100,000, there's a high likelihood of a pullback. However, the entry of long-term institutional funds suggests Bitcoin's price is far from its peak, and further upward movement is imminent," Chen concluded.
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