Bitcoin has reached a milestone by surpassing the $100,000 mark, marking a significant moment for the cryptocurrency industry. This achievement showcases the evolution of Bitcoin from its origins in the cypherpunk community to becoming a more widely accepted and
Bitcoin, once considered a niche investment for a small group of technology enthusiasts, has steadily increased in value over the years. Starting from just $1 in 2011, it reached $1,000 in 2013, and has now surpassed the highly sought-after six-figure mark in 2024.
The recent increase in the value of Bitcoin reflects its transformation from an experimental concept to a recognized and valuable financial asset on a global scale.
The path to reaching $100,000 for the cryptocurrency was not smooth sailing. Despite being declared as "dead" multiple times, it consistently bounced back and surpassed expectations.
According to Mikko Ohtamaa, co-founder of Trading Strategy, there is a small window of opportunity over the next two to three years to demonstrate the positive impact of cryptocurrency on the world. He believes that this is the last chance to make a significant difference, but he is optimistic about the current momentum in the industry.
Over the past decade, there has been a lot of guessing and predicting in the market. It is now the right moment to shift focus from guessing to practical, real-world applications. The current surge in prices is unique because of certain distinct factors.
Bitcoin is now seen as more than just a risky investment – it is considered a secure place to store wealth, protection against inflation, and a legitimate type of asset that is gaining support from institutional investors.
Origin: Cynthia Lummis
Exchange-traded funds (ETFs) that focus on specific markets in countries like the United States and Hong Kong have become easier to access. The election of Donald Trump, who is known for being supportive of cryptocurrencies, as the president of the US has created more opportunities for the cryptocurrency industry.
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During his campaign, Trump made a commitment to replace Gary Gensler, the Chair of the Securities and Exchange Commission. Gensler is considered a controversial figure in the crypto community because of his tough stance on enforcement.
Investors are optimistic that this change could lead to fewer obstacles from regulations, creating a more favorable atmosphere for cryptocurrency. Gensler's time in office, characterized by a strategy of enforcing regulations, has been heavily scrutinized by the industry for its lack of clear legal guidelines.
The path to reaching $100,000 for Bitcoin was not straightforward. It involved unpredictable price fluctuations, market crashes, and moments of uncertainty about its 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, which was the biggest Bitcoin exchange at the time. Even now, ten years later, the payouts to Mt. Gox's creditors continue to be a topic of discussion.
In December 2017, the value of Bitcoin peaked at almost $20,000 due to the rise in initial coin offerings (ICOs). However, regulations were quickly implemented, with the US categorizing ICOs as unregistered securities and China prohibiting them altogether. By December 2018, Bitcoin's value had dropped to $3,200.
A recent study found that a large majority of Initial Coin Offerings (ICOs) conducted in 2017 were identified
Bitcoin experienced a significant increase in value in 2021, reaching $63,000, thanks to the support from institutions and well-known companies like Tesla, led by Elon Musk.
Source: Arkham Intelligence
However, excitement was subdued once more due to regulatory measures. China cracked down on Bitcoin mining, causing the price to sharply decline to $29,000. After reaching a peak of $69,000 in November 2022, Bitcoin fell to a low of $15,000 amidst a turbulent period in the broader cryptocurrency industry, including FTX's collapse, Three Arrows Capital's downfall, and the Terra-Luna stablecoin crisis.
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 participate in the market, and the rally was further boosted by Trump's election in November.
According to market analyst Justin d'Anethan in Hong Kong, the current driving forces behind Bitcoin's growth include increased accessibility through ETFs, interest from corporate entities, and higher 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 economy.
Why is $100,000 significant for Bitcoin?
To supporters of Bitcoin, $100,000 represents more than just a numerical value. It serves as a psychological milestone that confirms the dedication and enthusiasm of those who have shown unwavering support for Bitcoin through the "laser eye" trend on social media.
However, as d'Anethan clarified, reaching $100,000 is not the ultimate objective.
In the last year, the increase in Bitcoin's value has been mainly influenced by experienced investors. Corporate treasuries like MicroStrategy, ETFs, and pension funds have all shown interest in investing in Bitcoin, but without much public attention.
Regular individual investors have not yet fully invested in Bitcoin, and when they do, the price may continue to rise beyond $100,000. Trump's campaign has also suggested the possibility of creating a strategic reserve of Bitcoin, which has received a variety of responses.
Author Ed Krassenstein, using the pseudonym Impure Hoonter
There are differing opinions on whether this is a step towards centralization or not. Magisat founder Quary believes it doesn't have an impact on Bitcoin's decentralized values.
Quary explained to Cointelegraph that the ownership of Bitcoin does not have any impact on the network.
It is hoped that the US and BRICS countries (Brazil, Russia, India, and China) share a common interest in Bitcoin and both have significant investments in the cryptocurrency. This would create an ideal scenario of a decentralized network where all parties can participate without bias.
The future of Bitcoin is uncertain. While reaching $100,000 is a significant milestone, many believe it marks the start of a larger journey for the cryptocurrency.
In the near future, if the US Federal Reserve continues to lower interest rates as expected, Bitcoin might benefit from a positive overall environment for risky investments.
According to d'Anethan, unless there is a significant liquidation resulting from bankruptcies in 2022 or an unexpected event, it appears that the easiest path forward is upwards.
Nevertheless, looking at past events, Bitcoin's path is usually not a consistent upward trend. It is common to experience corrections, even when there is overall positive momentum.
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With economic powers constantly changing and monetary policies evolving, Bitcoin has shifted from being a specialized asset to becoming a realistic financial option.
Bitcoin reaching $100,000 is a strong indication that cryptocurrency is becoming a permanent fixture in the financial world, serving as protection against inflation, a secure asset, and a representation of financial independence. This milestone shows that cryptocurrency, with its ups and downs, intricate nature, and ability to bring about change, is here to stay.