- Bitcoin’s pushed past $100,000.
- Market watchers expect it to go to $125,000 in 2025.
- Three factors are positioned to supercharge the rally, analysts say.
The Bitcoin rally keeps pumping.
The largest cryptocurrency finally blew past $100,000, a crucial milestone for the 16-year-old asset.
After rising 6% over the last day, Bitcoin is trading hands at $102,696 and boasts a total market value — the cumulative price of all Bitcoin on the market — of more than $2 trillion.
Many analysts say hitting six figures is just the beginning, with pundits proposing that Bitcoin’s price will hit $125,000 before the end of 2024 and $200,000 in 2025. Bitwise even suggested it may soon hit $500,000.
“We are likely six to 12 months away from identifying the true peak of this cycle,” Fadi Aboualfa, head of research at digital asset infrastructure firm Copper, said.
These three factors will drive Bitcoin higher.
Trump’s crypto promise
Bitcoin has risen more than 143% since the start of the year, bagging a lot of those gains shortly after Donald Trump won the US elections in November.
He ran on several pro-crypto promises, like setting up a strategic Bitcoin reserve and ending the “crypto crackdown” in the United States.
“Mr Trump is strongly pro-crypto, perhaps more accurately described as a real ‘crypto-bro’ like his new best friend, Elon Musk,” David Morrison, senior analyst at trading platform Trade Nation, told DL News.
Trump also promised a reshuffling of staff to reflect his crypto-friendly position.
On Wednesday, he tapped Paul Atkins, who serves on the board of advisers of crypto lobbying firm The Digital Chamber, as Commissioner for the Securities and Exchange Commission.
If confirmed, Atkins would replace departing Chair Gary Gensler to lead the agency.
Companies turn to Bitcoin
Institutional adoption of Bitcoin is another factor propelling the asset to new heights, pundits say.
“Most investors are underestimating the price potential from continued global flows into Bitcoin, whether from companies adding to their balance sheet or inflows into ETFs,” Chris Rhine, portfolio manager for crypto investment firm Galaxy Digital’s crypto exchange-traded fund, told DL News.
“There’s substantial interest in getting off zero.”
Eleven spot Bitcoin ETFs were approved in January and have seen inflows of over $32 billion since, according to SoSoValue.
J-Pow’s BTC wow
Finally, Federal Reserve Chair Jerome Powell’s comments suggest risk-on assets like Bitcoin remain in play.
Though he said the American economy was in “remarkably good shape” during the New York Times DealBook Summit in New York, rate cuts are still on the table for this year.
Analysts suggest a 25-basis-point cut at the December 18 Fed meeting is highly likely, according to the CME’s FedWatch tool.
Word to the wise
Bitcoin’s rise isn’t without its risks, though.
“Investors must remember that an asset doesn’t go up in a straight line forever,” Josh Gilbert, a market analyst at trading platform eToro, told DL News.
“Drawdowns for Bitcoin are par for the course, but it feels like it’s going to take something big to slow down bitcoin right now.”
Crypto market movers
- Bitcoin is up 6% over the past 24 hours to trade at $102,696.
- Ethereum is up 5.7% to $3,946.
What we’re reading
- South Korean investors choose XRP over Bitcoin as political crisis deepens — DL News
- The Dino Coin revival: Explained — Milk Road
- ‘Hawk Tuah’ sensation Haliey Welch’s HAWK token goes live — CoinDesk
- This GIGA influencer was charged by the SEC for defrauding investors — Unchained
- New York Mayor Eric Adams gloats about his Bitcoin paychecks amid 129% surge: ‘Who’s laughing now?’ — DL News
Liam Kelly is DL News’ Berlin Correspondent. Got a tip? Email him at liam@dlnews.com.