Historic breakthrough of $100,000, how much longer can Bitcoin rise?

In the past two weeks, Bitcoin has been hovering around the critical "hundred" mark. On Thursday, Bitcoin broke through the $100,000 barrier.

With Paul Atkins nominated by Trump as SEC Chairman, the market quickly reacted to this latest personnel appointment, and investor optimism regarding the U.S. cryptocurrency regulatory environment surged.

Since Trump won the presidential election last month, Bitcoin has risen by more than 40%, repeatedly approaching $100,000. As of the time of writing, Bitcoin has risen to $102,600 per coin.

The $100,000 price pushes Bitcoin's market capitalization close to $2 trillion, surpassing tech giants like Nvidia, Apple, and Google. The $2 trillion market cap is even larger than the national debt markets of Spain and Brazil, approaching the total market capitalization of the UK's FTSE 100 index. Currently, Bitcoin's market cap has surpassed that of Saudi Aramco.

Fadi Aboulfa, head of research at cryptocurrency custody company Copper Technologies Ltd., stated:

“Bitcoin breaking through $100,000 marks a new phase in the bull market, and it now seems immune to any external shocks.”

“Bitcoin breaking through $100,000 marks a new phase in the bull market”

Since Trump won the U.S. election, the cryptocurrency market has risen by about $1.4 trillion. The $100,000 price pushes Bitcoin's market capitalization close to $2 trillion, surpassing tech giants like Nvidia, Apple, and Google. The $2 trillion market cap is even larger than the national debt markets of Spain and Brazil, approaching the total market capitalization of the UK's FTSE 100 index.

Currently, Bitcoin's market cap has surpassed that of Saudi Aramco.

Bitcoin's rebound has also set a historical high for the Bitcoin/gold ratio.

Fadi Aboulfa, head of research at cryptocurrency custody company Copper Technologies Ltd., stated:

"Bitcoin has broken through $100,000, marking a new phase in the bull market, and it now seems immune to any external shocks."

Manuel Villegas, a digital asset analyst at Swiss Bank Julius Baer, stated:

"The cryptocurrency market may experience supply tightness next year. This is similar to the situation last year when strong demand far exceeded supply."

"Trump Trade" Fuels the Digital Currency Market

Bitcoin reached a historic high of $73,000 in March this year, marking a successful recovery from nearly an 80% plunge between November 2021 and November 2022.

During this cryptocurrency winter, the collapse of the FTX exchange, the bankruptcies of lending institutions like Genesis and Celsius, and the stringent crackdowns by regulators have severely impacted the entire industry. FTX founder Sam Bankman-Fried was sentenced to 25 years in prison for fraud, and Binance founder Changpeng Zhao was also penalized for anti-money laundering negligence.

Despite the many ups and downs the cryptocurrency market has faced, Trump's unexpected victory has ignited a fervent resurgence in the digital currency market. Bitcoin has been a key component of the Trump trade. According to Trump's campaign promises, this includes prioritizing the establishment of a national Bitcoin reserve.

Trump's transition team may elevate the cryptocurrency industry to an unprecedented level. They are considering establishing a brand new position—"Cryptocurrency Czar". The team is discussing with the digital asset industry, and the person in this position will lead a small team and serve as a liaison to Congress, the White House, and various cryptocurrency regulatory agencies.

Meanwhile, last month, the Financial Times reported that Trump Media & Technology Group (DJT) is in deep negotiations to acquire the cryptocurrency trading company Bakkt (BKKT), a collaboration that could further stimulate market enthusiasm.

Even before Trump's election, many industry insiders were optimistic that Bitcoin could break through $100,000. Hedge fund manager Anthony Scaramucci, billionaire Mike Novogratz, and strategists from financial institutions like JP Morgan and Goldman Sachs have publicly expressed similar views.

Recently, Bitcoin spot exchange-traded funds (ETFs) have attracted significant capital, driving up Bitcoin prices. The related options for BlackRock's spot Bitcoin ETF have also been listed on Nasdaq, further igniting market trading enthusiasm.

Risks Remain

Despite the optimistic market outlook, Oppenheimer analyst Lau warns investors that Bitcoin prices may experience volatility after breaking through significant thresholds. He specifically pointed out:

"Once Bitcoin prices reach $100,000, investors should remain cautious, as there may be selling pressure, and the market will look for the next breakout point." ”**