Bitcoin surges to $100,000!

Bitcoin (BTC) hit an all-time high (ATH) early in the Asian trading session on Thursday, December 5, reaching $103,600. Bitcoin’s much-anticipated six-figure milestone comes just hours after Donald Trump officially nominated crypto-supporter Paul Atkins as chairman of the U.S. Securities and Exchange Commission (SEC).

After a week of sideways trading, Bitcoin finally broke through $100,000. This latest rally is believed to be closely related to Trump winning the 2024 US presidential election.

Market analysts believe that Bitcoin's breakthrough to $100,000 is inevitable because of a perfect combination of factors driving the price upward.

Greg Magadini, head of derivatives at crypto analytics firm Amberdata, told Cryptonews that the main catalysts driving the price increase include tax policy around cryptocurrencies, discussions about strategic Bitcoin reserves, and continued inflows into Bitcoin exchange-traded funds (ETFs). 

Bitcoin has been performing very strongly recently and just became the seventh most valuable asset in the world.

Over the past 10 trading days, Bitcoin ETFs have seen a staggering $3.5 billion in inflows. According to data from Farside, total inflows into the Bitcoin ETF have reached $31.6 billion since its launch in January this year.

Joe Consorti, head of growth at multi-signature Bitcoin vault manufacturer Theya, told Cryptonews that it’s very impressive that the crypto industry has broken records for inflows into spot Bitcoin ETFs for multiple days in a row.

“Before the price reached $100,000, there were approximately $1.12 billion in short positions concentrated between $91,500 and $92,000. Once the price decisively broke through these two levels, the rise to $100,000 became very easy,” Consorti added.

The current Bitcoin bull run has prompted Bitcoin backers such as MicroStrategy (MSTR) and Metaplanet to announce new Bitcoin buying plans. MicroStrategy currently holds 1.5% of the total Bitcoin supply.

Bitcoin's breakthrough of $100,000 also marks an important turning point for retail and institutional investors.

Sergey Vasylchuk, CEO of global cryptocurrency staking platform Everstake, told Cryptonews that the Bitcoin price of $100,000 is a psychological threshold, and investors will undoubtedly take profits at this point.

However, Vasylchuk believes that many investors will not stay away from the cryptocurrency market.

“Once you get hooked on cryptocurrency profits, you’ll come back for more,” Vasylchuk said.

He further believes that the crypto industry will see inflows into Solana (SOL) or Ethereum (ETH), triggering a full-blown cryptocurrency bull run.

“This $100,000 Bitcoin bull market is different from the bull market narratives of the past. It’s a Bitcoin bull market, not a full-scale cryptocurrency bull market,” Vasylchuk said. “We may also see another wave of meme coins. market, this may push Solana to rise again, or the approval of the Ethereum ETF and the introduction of regulatory policies to support DeFi, thereby pushing Ethereum to rise.

Joe Flanagan, co-founder of Maple Finance, also believes that as Bitcoin’s dominance stabilizes, attention will turn to blue-chip decentralized finance (DeFi) tokens.

Industry experts predict that Bitcoin’s new highs will fuel the growth of the entire cryptocurrency industry.

Dennis Porter, CEO and co-founder of Satoshi Action Fund, told Cryptonews that a $100,000 Bitcoin price could lead to a surge in retail buying.

Tim Enneking, founder and head of Digital Capital Management, told Cryptonews that Bitcoin's breakthrough of $100,000 will indeed trigger "FOMO" (fear of missing out) among retail investors.

“The more valuable Bitcoin is, the more significant the impact will be on retail investors,” Enneking said. “Bitcoin is one step closer to being included as a reserve asset in different countries.”

Enneking added that a Bitcoin price of $100,000 would not serve as a permanent support level for the asset.