Bitcoin broke through the $100,000 mark for the first time on Thursday, riding a wave of optimism fueled by expectations of a pro-crypto regulatory environment under US President-elect Donald Trump.
The milestone underscores Bitcoin’s growing acceptance in mainstream finance and the potential for broader institutional adoption.
Investors are betting on Trump’s crypto-friendly policies, which aim to establish the US as a global leader in digital assets.
Bitcoin has seen a meteoric rise this year, doubling its value and gaining 45% in the weeks since Trump’s election victory.
When writing, Bitcoin traded at $102,302, up 6.64% from the previous session.
Source: CoinMarketCap
Market analysts attribute this surge to growing confidence in the cryptocurrency ecosystem.
“We’re witnessing a paradigm shift,” Mike Novogratz, CEO of Galaxy Digital told Reuters.
“Institutional adoption, advancements in tokenization, and a clearer regulatory path are driving Bitcoin and digital assets toward financial mainstream acceptance.”
Fed Chair Powell calls Bitcoin a competitor to gold
Federal Reserve Chair Jerome Powell has described Bitcoin as a competitor to gold, emphasizing its role in preserving monetary value rather than functioning as a currency.
Speaking at the 2024 New York Times DealBook Summit, Powell highlighted the cryptocurrency’s characteristics and volatility.
Bitcoin is more like gold, but in a virtual form. People aren’t using it as a payment method or a reliable store of value.
“It’s not a competitor to the dollar; it’s more of a competitor to gold,” Powell added.
Why is Bitcoin going up?
Trump’s campaign promises to transform the US into the “crypto capital of the planet” have resonated with investors.
#Bitcoin making history. Now going parabolic.
His administration is expected to roll back the stringent regulatory measures enforced under the current US Securities and Exchange Commission (SEC) leadership.
SEC Chair Gary Gensler announced he would step down in January, paving the way for Trump’s pick, Paul Atkins, to lead the commission.
Atkins, a former SEC commissioner and crypto advocate, co-chairs the Token Alliance and works with the Chamber of Digital Commerce to develop best practices for digital asset issuance and trading platforms.
His appointment is seen as a signal of the administration’s commitment to fostering innovation in the cryptocurrency space.
BTC at $100K: will Bitcoin keep going up?
Bitcoin’s rise to $100,000 marks a turning point in the cryptocurrency’s journey from a niche asset to a significant financial instrument.
Industry experts highlight the role of institutional adoption and technological advancements in driving this growth.
“Bitcoin crossing $100,000 isn’t just a number; it reflects a broader shift in global finance, technology, and geopolitics,” Justin D’Anethan, an independent crypto analyst based in Hong Kong was quoted as saying by Reuters.
What was once dismissed as a fantasy is now a reality, underscoring Bitcoin’s resilience and relevance.
The milestone comes more than 16 years after Bitcoin’s creation, a period marked by skepticism, regulatory challenges, and market volatility.
Despite these obstacles, BTC has demonstrated staying power and adaptability.
ATH! 🚨 1 BTC = 100,000 USD 🚨
Since 2009, its value has increased by 12.25 billion times, an unprecedented return in history 🚀
In just the past year, it has surged by +160% 🔥. Let’s celebrate together!
What will the next target be?
Beyond surpassing the $100,000 milestone, optimism around Bitcoin’s future growth remains strong among institutions and prominent crypto personalities.
New price targets range between $150,000 and $500,000 within the next few years, fueled by increasing institutional adoption and market momentum.
Bernstein Research has revised its bullish price forecast for Bitcoin, projecting it to reach $200,000 by 2025.
This updated target, previously set at $150,000, reflects the growing institutional demand for cryptocurrencies across various regions.
Charles Hoskinson, the founder of Cardano, is even more optimistic.
He predicts Bitcoin’s price could soar to $250,000 within the next two years, considering it a conservative estimate.
Hoskinson believes Bitcoin’s potential upper limit could reach as high as $500,000, driven by rapid adoption and expanding use cases.
Bitcoin hits $100K: what this means for crypto markets
Bitcoin’s rally is expected to have ripple effects across the broader cryptocurrency market.
Altcoins such as Ethereum, Solana, and Ripple could see renewed interest as investors look to diversify their portfolios.
Meanwhile, advancements in blockchain technology and tokenization could further integrate cryptocurrencies into traditional financial systems.
With the US poised to take a leadership role in the digital asset ecosystem, the stage is set for Bitcoin and other cryptocurrencies to continue their upward trajectory.
Trump’s pro-crypto policies and the potential for reduced regulatory hurdles could drive further investment and innovation in the space.
Bitcoin’s ascent past $100,000 is more than just a milestone; it’s a testament to its growing acceptance as a store of value and a hedge against economic uncertainty.
As geopolitical dynamics evolve and regulatory clarity improves, Bitcoin’s role in the global financial landscape is likely to expand further.
The cryptocurrency’s historic rise is a reminder that, despite past controversies, the future of finance is increasingly digital.
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