Will Bitcoin Touch $100K?

Sannihitha Ponaka
December 4, 2024
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2 mins
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Bitcoin has surged to a record high of USD 94,000, surpassing its previous all-time high for the first time since its inception. This remarkable growth has been fuelled in part by reports suggesting that Donald Trump’s media firm is considering acquiring the cryptocurrency platform Bakkt.

However, this isn’t the only factor driving Bitcoin's ascent. In 2024, Bitcoin has more than doubled from USD 44,000, achieving an impressive year-to-date growth of nearly 108%. Analysts predict that the largest cryptocurrency could soon cross the USD 100,000 mark.

Bitcoin to USD chart

Why is Bitcoin increasing?

Several reasons are driving the growth of Bitcoin, and we think the following are some of them. 

Strong optimism in the market

Since Donald Trump's win, institutional and retail investors have expressed strong positive sentiments about cryptocurrency. Many investors believe Trump's administration might adopt a more favourable stance towards cryptocurrencies to encourage investment in US markets. 

Institutional adoption

The institutional adoption of Bitcoins has increased in recent years, reflecting a greater acceptance among major financial players. Companies like Tesla and MicroStrategy have invested heavily in cryptocurrency and report the same on their balance sheets. Moreover, after the Securities and Exchange Commission (SEC) approved Bitcoin exchange-traded funds (ETFs), futures, and options, institutional and retail participation has increased, addressing security and compliance issues around cryptocurrencies. 

Global adoption

Few countries, like El Salvador and the Central African Republic, have adopted Bitcoin as legal tender, a popular alternative to fiat currency. This establishes further trust in digital currencies worldwide.  

Will Bitcoin touch 100K? 

There is a high chance that Bitcoin will breach the USD 100,000 level soon. Several analysts worldwide have predicted when Bitcoin will touch the USD 100K level. The primary reasons stated by the analysts from Quantum Economics, SwyftX, and Bitget Research are increased investor demand, Trump's pro-crypto policies, and the reduced supply of Bitcoin post-halving. 

Should investors include Bitcoin in their portfolios? 

A couple of years back, cryptocurrencies were all people could talk about, but after the drastic fall in the value of Bitcoin, cryptocurrencies lost their charm. However, with Trump's presidency, cryptocurrencies are back in the game. Adding them to your portfolio to earn those additional returns wouldn’t harm anyone. However, given the risk involved, you can allocate a maximum of 5% of your portfolio to cryptocurrencies. 

The market has several cryptocurrencies, but the most popular ones are Bitcoin, with a market share of 59.5%, followed by Ethereum (12.7%), Tether (5.2%), BNB (3.5%), and Solana (3.4%). You can invest in them through any trustworthy platform or through ETFs. However, it is important to remember that investing in crypto is very risky, and you must always conduct thorough research and consider your investment goals before proceeding.

Conclusion

Given Trump's win in the election and his positive stance on cryptocurrencies, investing in cryptocurrency can be very rewarding. Moreover, several analysts predict that Bitcoin could touch USD 100K soon. However, there is another side to the coin, too. Several analysts also predict that Bitcoin will fall due to overheated derivatives activity, short-term pullbacks, and record high open interest post-election, which can cool down in the coming months. Only time can tell whether the current rally will continue. 

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