Bitcoin just shattered records, crossing the $100,000 threshold and proving that some numbers carry extraordinary weight. Just as the world has always found fascination in numbers with special meanings, like the lucky number 7, the six-figure mark of $100,000 has been a milestone Bitcoin believers have long anticipated. To them, it wasn’t a question of if, but when.
Skeptics, however, scoffed at the idea. They dismissed Bitcoin, declaring it “dead,” bound to go to “zero,” and incapable of achieving mass adoption. Ironically, some critics even claimed they’d start taking it seriously only if it ever reached $100,000.
Well, here we are and people are paying attention!
The History of Bitcoin
Bitcoin's journey from an obscure concept to a global financial powerhouse is nothing short of extraordinary. Launched in 2009 by the pseudonymous Satoshi Nakamoto, Bitcoin emerged as a decentralized alternative to traditional currencies, promising a way to transact without intermediaries. The early years were marked by skepticism and volatility, with many questioning the longevity and purpose of this new digital currency.
Fast forward to 2013, when Bitcoin broke $1,000 for the first time, shocking financial analysts and sparking a wave of interest among tech enthusiasts. Despite facing numerous challenges, including regulatory scrutiny and skepticism from major institutions, Bitcoin continued to surprise markets with its resilience and rapid growth. The surge past $20,000 in 2017 and the record-setting $69,000 in 2021 exemplified its growing appeal among both retail and institutional investors.
Adding to the excitement was the launch of a spot Bitcoin ETF at the beginning of 2024, a long-awaited development that marked a new chapter for crypto. Investors have eagerly anticipated this product, as a spot ETF offered exposure to Bitcoin attracting a massive influx of money.
Now, Bitcoin has shattered the $100,000 barrier, a milestone many once thought impossible. Its rise continues to baffle traditional economists and energize supporters who have long touted its potential to transform the financial system.
Current Trends With Crypto
Pro-Crypto Policy Momentum
During Trump’s election campaign, he laid out his pro-crypto agenda. After he won the election, it energized the markets with the hope that he would follow through with his plans.
One of the boldest ideas discussed is the BITCOIN Act, which aims to treat Bitcoin like gold in Fort Knox. This plan proposes that the U.S. stockpile 1 million BTC over five years, which could impact Bitcoin’s supply and value positively (representing ~5% of total supply). Such a massive initiative signals the administration's commitment to solidifying the nation’s dominance in the crypto space, potentially reshaping the global financial landscape.
Another plan is to establish Bitcoin mining operations in the United States. This could transform the US into a hub for crypto innovation, attracting billions of dollars in investment.
To further support the crypto industry, he announced plans to replace the current SEC Chairman Gary Gensler and bring in leadership focused on clearer crypto policies.
You can learn more about this here.
Interest Rate Cuts
The Federal Reserve has implemented two rate cuts this year, reducing the federal funds interest rate from 5.25% - 5.50% to a current range of 4.50% - 4.75%. The first cut, a 50 basis point reduction, occurred in September 2024, bringing the rate down to 4.75% - 5%. This was followed by a 25 basis point cut in early November, lowering the rate to its current range. These moves reflect the Fed's attempt to counter economic headwinds and spark growth, giving markets a much-needed boost.
Lower interest rates typically stimulate economic activity by reducing borrowing costs, which can benefit investments in assets like cryptocurrencies, stocks, and real estate. This environment could encourage more investors to move from traditional savings to options like Bitcoin. With the potential for additional rate cuts in the near future, crypto’s upward trajectory may receive further support, possibly fueling another wave of retail and institutional interest.
You can learn more about the Fed and interest rates here.
The Bitcoin Halving Effect
We are roughly 7 months into the post-halving period following Bitcoin's fourth halving in April 2024. Historically, Bitcoin has exhibited price increases roughly a year after each halving event. Here’s a look at past halvings and their impact:
- First Halving - November 2012: From ∼$12 to ∼$1,100 in 12 months
- Second Halving - July 2016: From ∼$650 to ∼$18,000 in 17 months
- Third Halving - May 2020: From ∼$8,500 to ∼$69,000 in 18 months
- Fourth Halving - April 2024: From ∼$64,000, and now Bitcoin has surged past $100,000. What’s next?
Bitcoin's consistent post-halving performance gives people confidence in the asset’s potential to break new records. The current price movements may be just the beginning of a broader market rally. If historical trends hold, we could witness more positivity in the coming months.
You can learn more about the Bitcoin Halving here.
What’s Next for Bitcoin?
Bitcoin’s climb to $100,000 opens new possibilities. With potential pro-crypto policies on the horizon, increased institutional interest, potential rate cuts in the future, and Bitcoin’s fixed supply, this could continue its historic run. The stage is set for even greater adoption, and we may see continued strength in the market as more investors enter the crypto space.
If you’re interested in buying and selling Bitcoin (BTC) in a tax-advantaged crypto IRA*, go to iTrustCapital.com.
Open an account today!
*Some taxes may apply.
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