.png){kind=logo}
BTC has soared massively and crossed the $100K mark and hit a new all-time high of $104,000 on December 5th 2024. This upsurge is one of the defining moments in the history of Cryptocurrencies fueled by the positive Crypto sentiment associated with Trump’s presidency, and equally large inflows into Bitcoin-linked ETF.
The change in the price from what it was on November 5th at $68000 to that on December 5th at $104,000 actually indicates a volatility in a single month where prices went up 54%.
This is as a result of growing institutional acceptance of Bitcoin and the anticipation of regulatory clarity under the incoming Trump administration.
The emergence of Donald Trump has brought joy for the crypto markets. One was his announcement that Paul Atkins, who has been supportive of cryptocurrencies, will become the Chair of the Securities and Exchange Commission (SEC replacing Gary Gensler). Sources have predicted that Atkins’ leadership will bring regulatory guidance to the market that supports the development of cryptocurrencies, thus opening the possibility of a US Bitcoin strategic reserve as well as distinction of the industry lines.
This political shift has contributed to over 50% surge in just a month post election as Bitcoin breaches the $100K mark.
According to Geoff Kendrick, the Global Head of Digital Assets Research at Standard Chartered, from the beginning of 2024, institutional investors have bought 3% of total BTC supply mostly through ETFs.
Kendrick noted, “The industry has become institutionalized this year, and that’s mostly due to ETF inflows.”
The recent uptake of Bitcoin by institutions is making this king crypto largely accepted as an asset class, even as analysts warn of its volatility.
BTC surge is seen on a bullish pennant breakout on the 4-hour chart, leading to its $104K ATH. However, the 4- Hour RSI currently stands at 72, indicating overbought conditions. While the RSI suggests a potential correction, the upward momentum remains strong.
Dan Coatsworth, an investment analyst at AJ Bell, commented on the milestone:
“Smashing through the $100,000 level does not represent Bitcoin going mainstream. It’s a psychological factor and ultimately just a number. But it shows the speculative appetite in the market.”
Analysts are eyeing a target of $113,000. If BTC fails to maintain its current momentum above the 100K mark, a correction could lead to a retest of the $97,000 support before resuming upward movement. However, the ongoing rally indicates strong buyer interest, which could sustain the upward trend.
The market will move to another phase of price discovery as Bitcoin becomes firmly established above $100,000. Short-term view is rather skeptical, but the long-term picture seems to be rather optimistic among the analysts.
Geoff Kendrick summarized the sentiment:
“At the end of the day, it’s just a number. But reaching this milestone reflects the increasing institutionalization of Bitcoin and its growing role in global finance.”
With $113,000 as the next major target, Closely monitor market dynamics and regulatory developments under Trump’s administration.
Looking at the bigger picture, the average Bitcoin return after U.S. elections is 4,404%. Last time Trump won the U.S. election, $BTC pumped more than +2,500%. In 2020 BTC pumped by over 390% post-election. In 2024, with a pro-Bitcoin president even a 240% pump from the $100K psychological mark would mean $340,000 per Bitcoin!
This historic level is not just a milestone for the crypto king but a testament to its resilience and evolving acceptance in the financial ecosystem. More is yet to come, as we all know, we are just at the beginning of a bull run. A bull run that might see BTC breach the 300K, 500K levels in a few months, years.
