Bitcoin reached $100,000 – Why did this happen?

On the night of December 5, Bitcoin, the largest cryptocurrency in history, achieved a psychological milestone by surpassing the $100,000 mark. This event confirmed the faith and commitment of its believers and true holders. The breakthrough was achieved thanks to the release of several positive news.

What made Bitcoin worth $100,000?

Since the beginning of operations in 2020, the crypto community had hoped to see Bitcoin reach the price of $100,000 in the previous cycle. However, it took until 2024 for this goal to be achieved. Several factors contribute to the development of the new cryptocurrency market. One of these factors is a decline in demand caused by the April 2024 halving event and a shortage of free coins due to increased investor interest in spot Bitcoin ETFs.

The victory of Donald Trump in the US presidential election in November 2024 has led to a rapid expansion of the crypto market. His commitment to supporting the growth of cryptocurrencies has been an encouraging factor contributing to this expansion. There are three key factors that have contributed to Bitcoin reaching the $100,000 milestone:

• The last Bitcoin halving event on April 19, 2024. The block reward reduced to 3,125 BTC. If the demand for Bitcoin remains or increases, the price could rise due to scarcity.
• According to reports, Paul Atkins, a cryptocurrency supporter, may take the role of head of the U.S. Securities and Exchange Commission (SEC). As we know, the SEC is one of the primary regulators of the cryptocurrency market, and a commission led by a crypto enthusiast could ease regulatory burdens.
• Jerome Powell, Chairman of the Federal Reserve Board, compared Bitcoin to gold while stating that he does not consider Bitcoin a threat to the dollar. Additionally, the Fed chairman’s positive assessment of cryptocurrency has further fueled interest in it.

According to some reports, part of the SEC’s authority may be transferred to another body, now known as the Commodity Futures Trading Commission (CFTC). Unlike the SEC, they do not find evidence of illegal securities issuance in most cryptocurrencies.

Future prospects

In the world of cryptocurrencies, there is a tendency to enter the so-called «banana zone» — a zone where new records are regularly set. Since Bitcoin has not entered this market, it is impossible to predict its ultimate value.

However, with the increase in Bitcoin’s value, various bold predictions also multiply. Some daring traders risked their reputation by setting specific price targets for BTC before the post-election value surge (and if they fail to meet their target, they could become an Internet joke).

A report by Bernstein, an institutional market research company, published on October 22, predicted that Bitcoin’s value would reach $200,000 by the end of 2025. This report suggests that 2025 will mark the beginning of a new institutional era for cryptocurrency markets, and by the end of 2025, Wall Street will replace Satoshi as Bitcoin’s main wallet.