Bitcoin reaching $100,000 is a significant moment for the cryptocurrency world, marking a transition from an idea among cypherpunks to a widely recognized financial asset.
Bitcoin was once considered an unconventional investment favored by a niche group of technology enthusiasts and privacy advocates. However, its value has steadily increased over the years, reaching significant milestones such as $1 in 2011, $1,000 in 2013, and now exceeding six figures in 2024.
The recent rise in Bitcoin's value shows how it has progressed from being an interesting experiment to a recognized and respected financial asset worldwide.
However, reaching $100,000 was not an easy journey for cryptocurrency. Despite being declared "dead" numerous times, it continued to bounce back and rise in value.
According to Mikko Ohtamaa, who is a co-founder of the algorithmic trading firm Trading Strategy, there are only two to three years left to demonstrate how cryptocurrency can positively impact the world. This is seen as the last opportunity to make a difference, and there is currently a favorable trend supporting this goal.
For the past decade, the focus has been on speculation, but now it's time to shift towards practical real-world applications. The current surge in the market is unique for a few important reasons.
Bitcoin is now seen as more than just a risky investment – it is considered a safe option, a protection against inflation, and a legitimate asset class that is gaining popularity among institutional investors.
Taken from Cynthia Lummis.
Exchange-traded funds (ETFs) focused on cryptocurrencies have become more widely available in countries like the United States and Hong Kong. The election of Donald Trump, who is supportive of cryptocurrencies, as president has further opened up opportunities for the cryptocurrency industry.
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During Trump's campaign, he made a commitment to appoint a new Chair for the Securities and Exchange Commission, as many in the cryptocurrency community viewed Gary Gensler as a hostile figure due to his rigorous enforcement tactics.
Investors are optimistic that this change could lead to fewer obstacles from regulations, creating a more welcoming atmosphere for cryptocurrency assets. Gensler's time in office, characterized by a focus on enforcing regulations rather than providing clear guidelines, has faced criticism from the industry.
The road to reaching $100,000 for Bitcoin was not straightforward. There were many ups and downs, including extreme price fluctuations, market crashes, and moments of uncertainty about the cryptocurrency's future.
One of the most significant moments of struggle for Bitcoin was when its value dropped from $1,000 in 2013 to $200 in 2014. This decline was heavily influenced by the collapse of Mt. Gox, the leading Bitcoin exchange at the time. Even ten years later, there is still ongoing news about the payouts to Mt. Gox's creditors.
Bitcoin reached record highs in December 2017, almost reaching $20,000, due to the popularity of initial coin offerings (ICOs). However, regulatory actions were taken shortly after, with the US considering ICOs as unregistered securities offerings and China even prohibiting them completely. As a result, by December 2018, the price of Bitcoin had dropped to $3,200.
A recent study found that a large majority of Initial Coin Offerings (ICOs) carried out in 2017 were
The value of Bitcoin experienced a significant increase in 2021, reaching $63,000 with the help of institutions and prominent companies like Tesla, led by Elon Musk, who contributed to the upward trend.
Origin: Arkham Intelligence
However, excitement was dampened by regulatory pressure when China cracked down on Bitcoin mining, causing the price to plummet to $29,000. After reaching a peak of $69,000 in November 2022, Bitcoin fell to a low of $15,000 due to turmoil in the broader crypto industry caused by FTX's collapse, Three Arrows Capital's troubles, and the crisis with the Terra-Luna stablecoin.
As of 2024, Bitcoin has experienced a significant increase in value. The approval of spot Bitcoin ETFs by the SEC in January allowed more people to get involved, and Trump's election in November has further boosted the upward trend of Bitcoin.
According to market analyst Justin d'Anethan in Hong Kong, Bitcoin is currently being driven by factors such as easier access through ETFs, increased interest from corporations, and growing investments from institutions worldwide. Additionally, the move away from the US dollar in BRICS countries is also contributing to Bitcoin's appeal as a potential hedge against traditional reserve currencies in a changing global financial landscape.
Why is $100,000 significant for Bitcoin? For Bitcoin enthusiasts, reaching $100,000 is not just a numerical milestone. It represents a psychological breakthrough that confirms the dedication and belief in Bitcoin that supporters have shown over the years, as seen through the "laser eye" trend on social media.
However, d'Anethan clarified that the ultimate objective is not just $100,000.
"In the last year, the increase in Bitcoin's value has mostly been influenced by experienced investors. Corporate treasuries like MicroStrategy, ETFs, and pension funds have all started investing in Bitcoin without much attention," he explained.
Individual investors have not yet started investing heavily, but when they do, the enthusiasm will not be limited to $100,000. Trump's campaign also suggested the creation of a Bitcoin reserve, leading to a range of opinions.
Author: Ed Krassenstein/Impure Hoonter
There are differing opinions on whether this development is a step towards centralization or not. Quary, the founder of the Bitcoin marketplace Magisat, believes that it does not affect Bitcoin's decentralized principles.
Quary explained to Cointelegraph that the individual who possesses Bitcoin does not impact the network at all.
It is hoped that both the United States and BRICS countries (Brazil, Russia, India, and China) share an interest in Bitcoin and hold significant investments in it. The ideal situation would be a decentralized network where all parties can participate without bias. What lies ahead for Bitcoin? While reaching $100,000 is a significant milestone, for many, it represents just the start of Bitcoin's broader journey.
In the near future, as the US Federal Reserve is expected to continue lowering interest rates, Bitcoin may benefit from a positive overall economic environment for high-risk investments.
According to d'Anethan, unless there is a significant sell-off due to bankruptcies in 2022 or an unexpected crisis, it appears that the easiest route for the market is upwards.
Nevertheless, based on past events, the path of Bitcoin's growth is not usually a steady upward trend. It is probable that there will be corrections, even during times of positive momentum.
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With changing economic influences and developing financial strategies, Bitcoin has shifted from being a specialized asset to a practical option for managing finances.
Bitcoin reaching $100,000 is a sign that cryptocurrency is becoming more established and is here to stay, serving as a protection against inflation, a secure investment, and a representation of financial independence. This shows that the world of cryptocurrency is full of ups and downs, intricacies, and significant possibilities for change.