Bitcoin Surpasses $103,000 Amid Optimism for Future Growth
Bitcoin’s price surpassed $103,000 in December 2023, marking a significant milestone for the asset.
Market Developments
The introduction of the first US spot bitcoin ETFs in January and Trump's recent election win have influenced market sentiment. Trump nominated Paul Atkins as SEC chair, perceived as supportive of cryptocurrencies. Additionally, Fed Chair Jerome Powell compared bitcoin to gold.
Gold's market cap is approximately $18 trillion, compared to bitcoin’s $2 trillion, indicating potential growth for bitcoin, according to LMAX Group market strategist Joel Kruger.
Momentum from BTC breaching the six-figure threshold may lead to increased interest from various investors, validating community beliefs about bitcoin's status as a store of value, noted 21Shares crypto research strategist Matt Mena.
As of Thursday afternoon, bitcoin's price had dipped to around $99,000, with a key target at $110,000 based on Deribit data showing concentrated call option volumes at that level for January 31, 2025.
Historical Price Swings
Bitcoin has experienced significant price fluctuations historically. After reaching $18,000 in 2017, it fell to roughly $4,000 the following year. A peak of nearly $70,000 in late 2021 was followed by a drop to $16,000 in 2022.
Regulatory Outlook
While there is optimism regarding crypto regulation under the Trump Administration and a supportive Congress, Nansen principal research analyst Aurelie Barthere cautioned about potential unmet expectations. Initial policies may prioritize tariffs and immigration over crypto issues.