An illustration of US President-elect Donald Trump holding Bitcoin was displayed outside a cryptocurrency exchange store in Hong Kong on Thursday, following Bitcoin's surge above $100,000. — Reuters
Bitcoin's ascent to $100,000 on Thursday signified a crucial turning point, reflecting its growing acceptance and perceived worth. Analysts are now turning their attention to potential resistance levels, with targets set at $150,000 and even $200,000. The market's cautious response indicates that further growth could be on the horizon, according to analysts.
Bitcoin surpassed $100,000 for the first time on Thursday, shortly after Trump nominated cryptocurrency advocate Paul Atkins to lead the US securities regulator. This move fueled optimism that the incoming president would ease regulations on the sector. The digital currency has experienced a remarkable surge since Trump's election on November 5, during which he vowed to make the United States the “bitcoin and cryptocurrency capital of the world.”
US President-elect Donald Trump acknowledged his role in Bitcoin's historic surge past $100,000 on Thursday, responding to his social media followers with a “you’re welcome” after the cryptocurrency's value increased by over 50% since his victory. Bitcoin reached a record high of $103,800.45 during Asian trading hours before dipping slightly below $103,000. Following Trump’s comments, Bitcoin began to climb again, reaching $103,320, according to AFP. The volatile asset has surged by approximately 140% since the start of the year.
Nearly 16 years after its first block was mined in 2009, Bitcoin has achieved the landmark milestone of $100,000 per coin, placing the asset at a total market capitalization of over $2 trillion. This puts Bitcoin among a select group of seven assets or companies that have surpassed $2 trillion in market capitalization, including gold and tech giants NVIDIA, Apple, Microsoft, Alphabet (Google), and Amazon.
Bitcoin's historic rally to $100,000 per token is driven by significant market changes, potential US regulatory shifts under the Trump administration, and institutional adoption spurred by the success of Bitcoin ETFs. “With discussions of a US Strategic Bitcoin reserve and more companies adding BTC to their corporate treasuries, we are on the verge of true mainstream global adoption,” said Richard Teng, CEO of Binance.
The recent shift in macroeconomic conditions has significantly contributed to Bitcoin's rally. With the Federal Reserve cutting interest rates after a period of tightening, and global liquidity increasing, capital has flowed into assets seen as inflation-resistant and scarce. “Bitcoin, with its fixed supply of 21 million coins, has emerged as a natural hedge against fiat currency devaluation, driving increased demand,” Teng added.
Bitcoin's rising dominance could temporarily divert investment from altcoins. However, history suggests that once Bitcoin stabilizes, altcoins often experience a resurgence. Investors frequently enter Bitcoin at new highs, anticipating sustained upward momentum, which could further propel its price in the short term, according to Ryan Lee, chief analyst at Bitget Research.
“Looking ahead to 2025, long-term forecasts project Bitcoin setting new all-time highs before altcoins regain attention and traction. Despite these optimistic scenarios, the inherent volatility of the crypto market cannot be overlooked. Investors are advised to remain vigilant and prepared for potential corrections,” Lee cautioned.
Bitcoin's $100,000 milestone marks a pivotal moment for secure, decentralized payments and signals the growing influence of blockchain in reshaping commerce, according to Dan M. Wagner, CEO of Rezolve, a Nasdaq-listed AI technology business. “With President-elect Trump pledging to deregulate cryptocurrency, we're on the brink of a revolution in how we transact—one that could disrupt the $600 billion merchant fee market and transform the $30 trillion retail sector.”
There are two key points to consider with Bitcoin now at $100,000, according to Haider Rafique, global chief marketing officer of OKX. “First, the milestone is a significant celebratory moment for the industry. Hundreds of thousands of developers and ecosystem players have been working on Bitcoin and crypto for over a decade, and this is validation of their hard work. Second, there are still significant bullish signals in the market—Michael Saylor recommending Microsoft buy bitcoin, more institutional adoption, and so on.”
However, there could be a supply shock in the future as Bitcoin's finite supply becomes a focus for a larger pool of investors in a bullish cycle. “There could also be a retrace in the near future of 20-30% as some investors will likely take profits. However, this type of pullback probably wouldn’t last too long,” Rafique noted.
Shivam Thakral, CEO of BuyUcoin, India’s second-longest-running digital asset exchange, said traders are optimistic about a more favorable regulatory environment, particularly with Trump's commitment to making the US the “crypto capital of the world” and his plans to establish a national Bitcoin reserve. “Investors predict that Bitcoin could continue its upward trajectory as we head to 2025, with some forecasting a rise to $120,000 soon,” he added.
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