Bitcoin (BTC) has set a new record, breaking past the $106,000 mark earlier this week.
This remarkable rise is driven by a combination of factors, including speculation that President-elect Donald Trump may establish a Bitcoin reserve and major companies such as Riot Platforms and MicroStrategy purchasing large amounts of BTC. Another key factor contributing to this surge is the anticipation surrounding a potential interest rate cut by the US Federal Reserve.
Market experts believe that a reduction in rates, expected to be announced soon, would favor Bitcoin by weakening the dollar, boosting liquidity, and making traditional investments less appealing.
In addition to these catalysts, analysts are pointing to growing optimism surrounding the US government’s stance on cryptocurrency. With Bitcoin ETFs attracting significant institutional investment, the rally is being largely driven by traditional finance (TradFi) capital, which marks a shift from previous crypto cycles that were more reliant on retail traders.
Augustine Fan of SOFA suggests that this influx of institutional money is poised to accelerate Bitcoin’s upward momentum. He also notes that Bitcoin’s price action has shown signs of a sustainable trend, with the cryptocurrency forming higher lows, which is a positive indicator for its long-term growth.
Crypto exchange BTSE’s COO Jeff Mei further supports this bullish outlook, stating that Bitcoin’s growth potential remains significant. Mei anticipates that Bitcoin could reach $125,000 by 2025, citing historical data that suggests December often brings significant gains for the cryptocurrency. Since 2015, Bitcoin has closed December in the green six times, with increases of up to 46%. He argues that the idea of institutions, family offices, and high-net-worth individuals allocating even a small percentage of their portfolios to Bitcoin will likely trigger another surge in demand.
Bitcoin giant Strategy has added another 4,980 BTC to its reserves in a purchase worth approximately $531.9 million, according to Executive Chairman Michael Saylor.
According to renowned market veteran Peter Brandt, trading isn’t the path to prosperity for the vast majority of people.
Charles Edwards, founder and CEO of Capriole Investments, has offered a fresh perspective on Bitcoin’s stalled price movement near the $100,000 mark, despite growing institutional enthusiasm.
Metaplanet has expanded its Bitcoin treasury with a new acquisition of 1,005 BTC valued at approximately $108.1 million, further cementing its status as one of the largest corporate holders of the digital asset.