Experts and Analysts React to Bitcoin’s Surge Past $100K: What’s Next?

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As a seasoned analyst with over two decades of experience in both traditional finance and crypto markets, I’ve witnessed countless market fluctuations and trends. The recent surge of Bitcoin above $100,000 is not just another bull run but a testament to the transformative power of technology and human ingenuity.

Over the last 24 hours, Bitcoin (BTC) soared by 7%, reaching over $100,000, causing a significant stir within the cryptocurrency community. Market experts and analysts are now weighing in on the reasons behind this record-breaking spike and predicting potential future heights for bitcoin, considering the current market conditions.

CryptoPotato garnered insights from analysts at the cryptocurrency exchange Bitfinex and the blockchain analytics platform Nansen. Moreover, leaders from conventional financial institutions who are major investors in the top digital currency shared their views on the victory.

Analysts React to BTC Above $100K

As a crypto investor, I’ve noticed that the halving earlier this year seemed to have played a significant role in propelling Bitcoin past the $100,000 mark. After the event in April, the supply of BTC was reduced by half, as was its emission rate and inflation. This sudden slowdown in supply could be seen as a ‘supply shock,’ potentially driving up the price due to increased demand relative to the decreased supply.

The U.S. Federal Reserve successfully prevented a likely economic recession and a significant job market crisis, which experts at Bitfinex believe contributed to bitcoin’s rise to $100,000. By maintaining economic stability despite increasing housing loan default rates, the Federal Reserve essentially created an advantageous situation for bitcoin to flourish.

At the New York Times DealBook Summit on December 4, Federal Reserve Chair Jerome Powell likened Bitcoin to gold rather than the U.S. dollar. In other words, he suggested that Bitcoin is more of a rival to gold than it is to the American currency.

Bitcoin Short-term Target at $112k

First on the list is the rise of Donald Trump, a supporter of cryptocurrencies, as the 47th president of the United States. Throughout his campaign, he expressed pro-crypto views that resonated with the digital asset community. Now, he has chosen Paul Atkins, who is also crypto-friendly, to head the U.S. Securities and Exchange Commission.

Aurelie Barthere, Nansen’s Principal Research Analyst, stated that Atkins’ nomination provided a significant boost to Bitcoin reaching its current value of $100,000.

With Bitcoin’s price climb ongoing, Bitfinex has set its short-term goal at a staggering $112,000 – currently valued at $101,820. Despite analyst predictions suggesting a decrease in trading activities during the holiday season, they anticipate that there will be a continued distribution of Bitcoin among long-term holders over the long term.

According to Nansen’s viewpoint, the favorable trend of December for Bitcoin’s pricing should ward off significant corrections. Yet, traders might experience letdown if President Trump focuses on tariff and immigration-related policies following his inauguration on January 20th.

Despite any contrary views, Richard Teng, CEO of the world’s leading crypto exchange Binance, asserts that Bitcoin reaching $100,000 showcases the transformative power of audacious concepts in shaping our digital future. Cathie Wood, founder of investment firm Ark Invest, concurs, stating:

“Even after breaking through $100,000, bitcoin still is in early innings.”

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2024-12-05 18:56