Bitcoin Reaches $100,000: The Event of the Decade

What was once an experimental digital currency striving to transform money transactions has become the most demanded and traded financial market asset of the modern day.

Bitcoin breached the $100,000 mark on December 5, 2024, for the first time in history, only a month after its 16th anniversary since being created by an anonymous inventor who sought to establish a global, transparent, tamper-proof currency.

The massive rally from the mid-$90k level to more than $103,000 at the time of writing came hours after pro-crypto U.S. President-elect Donald Trump signaled a more lenient regulatory approach to the cryptocurrency industry, announcing plans to nominate cryptocurrency advocate Paul Atkins as the next chairman of the Securities and Exchange Commission.

Why did Bitcoin reach $100,000?

A cheer for the crypto community, the six-figure milestone glorifies the advocacy for Bitcoin and the wider cryptocurrency space by many and further legitimizes the demand, utility, and potential of cryptocurrencies in today's world following a series of fortunate developments.

Notably, the re-election of U.S. President Donald Trump, regarded by many as an advocate for cryptocurrency, triggered an anticipated spike in cryptocurrency market sentiment, with Bitcoin soaring to multiple new all-time highs within days of the news and driving other cryptocurrencies to fresh records in what analysts describe as "bullish euphoria."

Bitcoin soared 500% in two years

The recent meteoric rise of Bitcoin was not solely driven by Trump’s triumph, which acted as a catalyst for the already booming cryptocurrency space.

Going back to early 2023, sentiment toward cryptocurrencies began to rejuvenate following a rather catastrophic 2022 as market participants hoped for the approval of Bitcoin exchange-traded funds (ETFs) by regulators, symbolizing a bridge between traditional and modern finance.

The optimism continued into early 2024 with the blockbuster success of Bitcoin ETFs in the United States. This was followed by the long-awaited Bitcoin halving in April 2024, which increased scarcity and boosted demand.

Bitcoin’s trading volume has since grown to surpass oil and even gold, cementing its role as a premium safe haven, store of value, and hedge against macroeconomic risks—attributes traditionally associated with gold, which has held financial and cultural significance for thousands of years.

Fast forward to the present, the broader crypto market has surged in buying pressure following the 2024 U.S. election results, pushing overall cryptocurrency market capitalization to record highs nearing $3.5 trillion.

This reflects heightened market optimism and excitement about the future of crypto, which the president-elect has consistently pledged to support through numerous statements.

Will Bitcoin Reach $200,000?

Bitcoin has come a long way since 2009. Surrounded by mystery and skepticism for more than a decade and a half, Bitcoin has been declared “dead” by skeptics more than 415 times, yet it has consistently defied expectations. And whenever the world’s most popular cryptocurrency sets a new high, people often wonder if this will be the highest valuation it ever reaches.

Bitcoin Price Activity

Source: TradingView

Bitcoin’s long-awaited spike to $100,000 was inevitable, many analysts argue, due to its growing scarcity, utility, and adoption.

Achieving the psychologically significant six-figure mark is thus a major victory for its supporters, so market volatility is expected as short-term investors may seek to capitalize on their hard-earned wins.

With that being said, positive fundamentals and developments are likely to be essential for the long-term prosperity of Bitcoin and its significance to governments, companies, and investors, which have been adopting Bitcoin at unprecedented levels. Market experts foresee Bitcoin surpassing the $150,000 level during 2025, provided the crypto space continues to prosper and expand.