As a seasoned analyst who has witnessed the meteoric rise of Bitcoin from its humble beginnings to its current status as a legitimate global financial asset, I can confidently say that we are living through an unprecedented era in the world of cryptocurrency. The journey to $100,000 is not just a number, but a testament to the resilience and potential of this digital coin.
Originally viewed as a niche investment among cypherpunks and tech aficionados, Bitcoin (BTC) has steadily scaled numerous significant hurdles since its $1 value in 2011. It reached the impressive $1,000 mark in 2013, and by 2024, it had surpassed the coveted six-figure threshold.
The recent rise in Bitcoin’s value suggests that it has transitioned from a novel curiosity to a bona fide global financial investment.
But the journey to $100,000 was far from a field of green candles. The cryptocurrency has been declared “dead” more times than one can count, yet it rose from its grave every time.
For the next two to three years, it’s our last opportunity to demonstrate that cryptocurrency can positively transform the world. This is our final shot, and this time around, we have a strong wind at our backs,” Mikko Ohtamaa, co-founder of Trading Strategy, emphasized to CryptoMoon.
“The last 10 years have been pure speculation. Now is time to go from speculation to real-world utility.”
This latest bull run stands out due to some key differences.
Currently, Bitcoin isn’t merely seen as a typical investment for speculation – it’s broadly perceived as a refuge, a shield against rising prices, and an established investment category that is increasingly attracting institutional interest.
In significant economic regions like the U.S. and Hong Kong, spot exchange-traded funds (ETFs) have simplified access, while the recent election of pro-cryptocurrency president Donald Trump in the U.S. has paved the way for further growth within the cryptocurrency sector.
Trump’s campaign featured a pledge to swap out the Securities and Exchange Commission Chair, Gary Gensler, who is perceived as an adversary within the cryptocurrency realm because of his firm stance on enforcement.
Investors are optimistic that this change may eliminate some regulatory hurdles, creating a more inviting atmosphere for digital currencies. Critics have frequently accused Gensler’s term in office, characterized by a “regulation through enforcement” approach, of causing confusion due to insufficient legal guidelines.
The journey to $100,000 started with a single crash
The trip of Bitcoin to reach $100,000 hasn’t followed a smooth trajectory; instead, it’s been characterized by extreme price fluctuations, market collapses, and moments when its survival was questioned.
As a crypto investor, I’ve seen some turbulent times, one of which was when Bitcoin soared to $1,000 in 2013, only to plummet down to $200 the following year. The demise of Mt. Gox, the dominant Bitcoin exchange back then, cast a long shadow during that period, and even today, discussions about its creditor payouts are still ongoing, more than a decade later.
As a researcher looking back on late 2017, I recall the extraordinary surge of Bitcoin prices nearing $20,000, driven largely by the Initial Coin Offering (ICO) phenomenon. But, as fate would have it, regulatory actions started to take shape swiftly thereafter. In the United States, ICOs were deemed unregistered securities offerings, leading to stricter regulations. Meanwhile, China went a step further and prohibited them outright. By December 2018, Bitcoin’s trading value had dropped significantly to $3,200.
As a researcher looking back at the cryptocurrency market’s evolution, I found myself captivated by Bitcoin’s significant surge in 2021, soaring as high as $63,000. This monumental rise was not only propelled by institutional investors but also by influential companies like Tesla, led by Elon Musk, who contributed to the escalating momentum.
However, regulatory constraints rekindled concerns: China enforced a clampdown on Bitcoin mining activities, causing a significant plunge to $29,000 in price. After hitting a record high of $69,000 in November 2022, Bitcoin’s value plummeted to a low of $15,000 due to turmoil within the crypto market triggered by FTX’s collapse, the downfall of Three Arrows Capital, and the Terra-Luna stablecoin crisis.
2024 has been an exciting year for me as a crypto investor. In January, the Securities and Exchange Commission (SEC) gave its approval for spot Bitcoin ETFs, making it easier for more people to invest in this digital currency. As if that wasn’t enough, the November election of President Trump has added even more momentum to the Bitcoin rally. It’s been quite a ride!
As a researcher, I’m observing that factors such as the increased accessibility of Exchange-Traded Funds (ETFs), strategic investments from corporations, and expanding allocations from institutions worldwide are driving the current momentum. The reconsideration of the role of traditional reserve currencies, particularly in BRICS economies where there’s a move away from the dollar, adds an element of intrigue to Bitcoin, positioning it as a potential hedge in this evolving global financial landscape.
What does $100,000 mean for Bitcoin?
For those who believe in Bitcoin’s growth, reaching $100,000 is significantly more than just a figure. It represents a pivotal psychological benchmark that confirms years of unwavering enthusiasm – a trend on social media where supporters of Bitcoin have adopted laser-eyed profile pictures to express their conviction in achieving this milestone.
But as d’Anethan explained, $100,000 isn’t the end goal.
”Over the past year, the rise has been largely driven by sophisticated players: we’ve seen corporate treasuries (mainly MicroStrategy), ETFs pop up, and even pension funds starting to allocate to BTC, all with limited fanfare,” he said.
“Retail investors have yet to pile in, and when that euphoria hits, it won’t stop at $100,000.”
Trump’s campaign proposed the concept of a strategic Bitcoin stockpile, an idea that has generated a variety of responses.
Some consider this action a step towards consolidation, whereas Magisat founder Quary, among others, perceives it more as being neutral to the decentralized values of Bitcoin.
“Who holds Bitcoin doesn’t really affect the network in any way,” Quary told CryptoMoon.
“Hopefully, both US and BRICS (Brazil, Russia, India and China) have similar interest in Bitcoin and both own big stakes in Bitcoin. That’s the best case scenario in my opinion — an unbiased decentralized network where all powers can partake.”
Where does Bitcoin go from here?
Reaching $100,000 is more than just a milestone; it marks the start of Bitcoin’s greater narrative for numerous individuals.
In the coming months, as the U.S. Federal Reserve is expected to keep reducing interest rates, Bitcoin may potentially benefit from a market climate that favors high-risk investments.
If there are no significant liquidations due to bankruptcies in 2022 or any unexpected ‘black swan’ events occur, it appears the most likely direction will be upward,” according to d’Anethan.
On the other hand, just like past events indicate, Bitcoin’s path often doesn’t follow a steady upward trend. It’s quite possible that corrections will occur, even when there’s a generally positive trend.
In a changing global economy where power dynamics are moving and currency management is adapting, Bitcoin has progressed from a rare investment option to a credible financial choice.
It’s evident that Bitcoin reaching $100,000 symbolizes the enduring presence of digital currencies, complete with their unpredictable fluctuations, intricacies, and groundbreaking possibilities. In essence, this milestone underscores the permanence of the cryptocurrency era.
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2024-12-08 17:02