- Bitcoin has reached a historic milestone, surpassing $100,000 for the first time.
- Donald Trump’s nomination of Paul Atkins, a cryptocurrency advocate, as SEC chairman signals a potentially favorable regulatory environment for digital assets.
- BlackRock’s Bitcoin ETF now holds more than 500,000 BTC, underscoring significant adoption of Bitcoin by institutional investors.
- US spot ETFs collectively hold over 1 million BTC, approaching Satoshi Nakamoto’s estimated holdings.
- Federal Reserve Chairman Jerome Powell compared Bitcoin to gold during the DealBook Summit, reinforcing its narrative as “digital gold” and a speculative asset for wealth preservation.
Bitcoin has reached a historic milestone, surpassing $100,000 for the first time. The cryptocurrency hit an all-time high of $103,399 and is currently trading at $102,660, according to CoinMarketCap data.
This increase reflects an 8% increase in the last 24 hours, with trading volumes exceeding $106 billion, an increase of more than 55%.
This historic achievement is being hailed as a transformative moment for Bitcoin and the broader cryptocurrency market. Brian Armstrong, CEO of Coinbasetook to social media to celebrate and even suggested governments create a “strategic Bitcoin reserve.” Armstrong aware in X:
“If you bought $100 worth of Bitcoin when Coinbase was founded in June 2012, it would now be worth about $1,500,000..
If you kept the $100 USD, you could only buy about $73 worth of goods today.
Bitcoin is the best performing asset of the last 12 years and it’s still early days.
All governments, especially those seeking to create a hedge against inflation, should create a strategic reserve of Bitcoin.
Happy $100,000 Bitcoin Day.“
Regulatory changes and institutional adoption
The recent price escalation is influenced by important regulatory and institutional developments. President-elect Donald Trump nominated Paul Atkins, a well-known cryptocurrency advocate, to chair the United States Securities and Exchange Commission (SEC).
Atkins, a former SEC commissioner, is expected to take a more lenient approach toward cryptocurrency regulation, in contrast to the strict measures of his predecessor, Gary Gensler.
Federal Reserve Chairman Jerome Powell also influenced market sentiment by comparing Bitcoin to gold during the New York Times DealBook Summit. Powell emphasized Bitcoin’s role as a speculative asset and its volatility, comparing it to digital gold rather than a substitute for the US dollar.
Institutional adoption has further fueled the rise of Bitcoin. BlackRock’s iShares Bitcoin Trust (IBIT) now holds more than 500,000 BTC, approximately $48 billion, cementing its position as the third largest holder of Bitcoin globally.
Additionally, US Bitcoin Spot ETFs collectively hold over 1 million BTC, approaching the holdings of pseudonymous Bitcoin creator Satoshi Nakamoto, who is believed to own around 1.096 million BTC.
BTC price crosses the 100,000 mark: what’s next?
Bitcoin surpassing the $100,000 threshold marks a significant achievement, but questions are being raised about its future trajectory. The combination of a potentially crypto-friendly regulatory environment and growing institutional investment suggests a favorable outlook. However, concerns remain about market volatility and concentration of holdings among large entities.
Despite concerns about the sustainability of this rally, experts believe that crossing the $100,000 threshold could bolster Bitcoin’s perceived legitimacy and drive greater adoption, especially if the regulatory environment becomes more favorable.
Ryan Lee, Chief Analyst at Bitget Research, mentioned in an email note to AlexaBlockchain that Bitcoin’s rise to $100,000 underscores its growing adoption and perceived value.
Analysts are now focusing on possible resistance levels, with targets of $150,000 and even $200,000. The market’s measured reaction suggests there may still be room for growth.
However, Lee warned that Bitcoin’s growing dominance could temporarily divert investment away from altcoins. Historically, once Bitcoin stabilizes, altcoins typically experience a resurgence. Investors typically enter Bitcoin at new highs, anticipating sustained bullish momentum, which could boost its price further in the near term.
Looking ahead to 2025, long-term forecasts project that Bitcoin will set new all-time highs before altcoins regain attention and traction.
Lee warns that despite these optimistic scenarios, the inherent volatility of the crypto market cannot be overlooked. Investors are advised to remain vigilant and prepared for possible corrections.
Shivam Thakral, CEO of BuyUcoin, highlighted that Bitcoin’s historic milestone was driven by the optimism surrounding the incoming administration of President Donald Trump.
Shivam mentioned that the cryptocurrency’s peak reflects a notable 45% increase since Trump’s election victory four weeks ago. Traders are excited about a more favorable regulatory environment, particularly with Trump’s pledge to make the United States the “crypto capital of the world” and his plans to establish a national Bitcoin reserve.
According to Shivam, Bitcoin could continue its upward trajectory as we approach 2025, and could soon reach over $120,000.
Also Read: India’s Web3 advocacy body BWA adopts new initiative to make cryptocurrencies more secure
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