- Bitcoin has reached a historic milestone, surpassing $100,000 for the first time.
- The nomination of Paul Atkins, a cryptocurrency advocate, as SEC Chair by Donald Trump indicates a potentially favorable regulatory environment for digital assets.
- BlackRock’s Bitcoin ETF now holds more than 500,000 BTC, underscoring a huge embrace of Bitcoin by institutional investors.
- US spot ETFs collectively hold over 1 million BTC, approaching Satoshi Nakamoto’s estimated holdings.
- Fed Chair Jerome Powell likened Bitcoin to gold during the DealBook Summit, reinforcing its narrative as “digital gold” and a speculative asset for wealth preservation.
Bitcoin has achieved a historic milestone, surpassing $100,000 for the first time. The cryptocurrency reached an all-time high of $103,399 and is currently trading at $102,660.
This surge reflects an 8% increase over the past 24 hours, with trading volumes exceeding $106 billion, up more than 55%.
This historic achievement is being hailed as a turning point for Bitcoin and the broader cryptocurrency market. Industry leaders, including Coinbase CEO Brian Armstrong, took to social media to celebrate. Armstrong posted on X (formerly Twitter):
“If you bought $100 of Bitcoin when Coinbase was founded in June 2012, it would now be worth about $1,500,000.
If you kept $100 USD you could only buy about $73 worth of goods today.
Bitcoin has been the best performing asset for the past 12 years, and it’s still early days.
Every government, especially those looking to create a hedge against inflation, should create a Bitcoin strategic reserve.
Happy Bitcoin $100k day.“
Regulatory Shifts and Institutional Adoption
The recent price increase has been influenced by significant regulatory and institutional developments. President-elect Donald Trump has nominated Paul Atkins, a prominent cryptocurrency advocate, to head the US Securities and Exchange Commission (SEC).
Atkins, a former SEC commissioner, is expected to adopt a more relaxed approach toward crypto regulation, in contrast to the strict measures of his predecessor, Gary Gensler.
Federal Reserve Chair Jerome Powell also affected 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, likening it to digital gold rather than a replacement for the US dollar.
Institutional adoption has further fueled Bitcoin’s ascent. BlackRock’s iShares Bitcoin Trust (IBIT) now holds over 500,000 BTC, roughly $48 billion, cementing its position as the world’s third largest holder of Bitcoin.
Additionally, US spot Bitcoin ETFs collectively hold over 1 million BTC, which is close to the holdings of Bitcoin’s pseudonymous creator, Satoshi Nakamoto, who is believed to hold around 1.096 million BTC.
BTC Price Crosses 100k Mark — What’s Next?
Bitcoin breaching the $100,000 threshold marks a significant achievement, but questions have arisen about its future trajectory. The combination of a potentially crypto-friendly regulatory environment and increasing institutional investment suggests a favorable outlook. However, concerns about market volatility and the concentration of holdings in large entities persist.
Despite concerns about the continuation of this rally, experts believe that crossing the $100,000 threshold could boost the perceived legitimacy of Bitcoin and drive further adoption, especially if the regulatory environment becomes more favorable.
Ryan Lee, Chief Analyst at Bitget Research, noted in an email note to AlexaBlockchain that Bitcoin’s climb to $100,000 underscores its increasing adoption and perceived value.
Analysts are now focused on potential resistance levels, with targets of $150,000 and even $200,000. The measured market reaction suggests there may still be room for growth.
However, Lee cautioned that Bitcoin’s rising dominance could temporarily divert investment away from altcoins. Historically, once Bitcoin stabilizes, altcoins often experience a resurgence. Investors often enter Bitcoin at new highs, expecting continued momentum, which could further push its price in the short term.
Looking ahead to 2025, long-term forecasts project Bitcoin setting new all-time highs before altcoins regain attention and traction.
Lee cautioned that 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.
Shivam Thakral, CEO of BuyUcoin, highlighted that Bitcoin’s historic milestone was fueled by the optimism surrounding the incoming administration of President Donald Trump.
Shivam noted that the cryptocurrency’s peak reflects a remarkable 45% increase since Trump’s election victory four weeks ago. Traders are enthusiastic about a more favorable regulatory environment, especially with Trump’s promise to make the US the “crypto capital of the world” and his plans to establish a national Bitcoin reserve.
According to Shivam, Bitcoin may continue its upward trajectory as we head into 2025, and may reach over $120,000 soon.
Also Read: India’s Web3 Advocacy Body BWA Takes New Initiative to Make Crypto Safer
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