Bitcoin's price has surpassed the long-anticipated threshold of $100,000, and now people are questioning what Bitcoin's next target will be.

Dan Coatsworth, an investment analyst at AJ Bell, describes this as a 'magical moment' for cryptocurrency and states that it has a 'clear connection' to Donald Trump's election victory.

Trump took to social media to celebrate the milestone BTC reaching $100,000, along with the phrase 'congratulations to Bitcoin investors.' The previously elected president had pledged to turn the U.S. into the 'cryptocurrency capital' and 'Bitcoin superpower' of the world, contributing to pushing Bitcoin's price higher after he was elected president.

BTC price has surpassed the long-awaited threshold of $100,000 after Trump announced he would nominate former Securities and Exchange Commission (SEC) commissioner Paul Atkins to lead the Wall Street regulator. Atkins is seen as a supporter of cryptocurrency compared to the current SEC head, Gary Gensler.

Andrew O'Neill, a digital asset expert at S&P Global, said: "Clearly, a Trump administration will have a more pro-cryptocurrency stance compared to the Biden administration."

"So, in terms of Bitcoin price, I think that is the driving force behind the upward trend so far and is likely to continue into the new year," he added.

However, Bitcoin has a history of sharp declines as well as rapid increases - and some analysts have warned that this may not change. Coatsworth said: "Many people have become wealthy due to the surge in cryptocurrency prices this year, but this high-risk asset is not suitable for everyone."

"It is unstable, unpredictable, and driven by speculation, there is no reason for you to lose sleep over investing," he said.

Trump Effect

During his presidential campaign, Trump sought to appeal to cryptocurrency investors with a promise to fire Gary Gensler - the chairman of the U.S. Securities and Exchange Commission (SEC) on his first day in office.

Gensler's approach to the cryptocurrency sector is clearly less friendly compared to Trump.

Gensler told the BBC in September that this is an industry 'rife with fraud, scammers, and con artists.'

Under his leadership, the SEC took 46 enforcement actions related to cryptocurrency against crypto companies in 2023. Gensler stated in November that he would resign on January 20 - the day Trump is inaugurated.

The selection of Paul Atkins to replace Gensler as SEC head has been welcomed by cryptocurrency advocates.

Mike Novogratz, founder and CEO of the U.S. cryptocurrency company Galaxy Digital, said he hopes a 'clearer regulatory path' will now accelerate the integration of the cryptocurrency ecosystem into 'the financial mainstream.'

Bitcoin's value has experienced less severe declines in 2024 compared to previous years. In 2022, the price of this coin plummeted below $16,000 after the cryptocurrency exchange FTX collapsed.

Several key events besides Trump's election victory have helped bolster investor confidence that the value of this coin will continue to rise.

Additionally, the SEC's approval of Bitcoin and Ethereum ETFs has allowed major investment firms like Blackrock, Fidelity, and Grayscale to enter the market. Some cryptocurrency ETF funds have raised billions of dollars in cash.

Carol Alexander, a finance professor at the University of Sussex, told BBC News that the fear of missing out (FOMO) among young people will drive Bitcoin's price further up.

But she added that while this may drive the rise of other cryptocurrencies, many young investors investing in memecoins are losing money.

Can Bitcoin's price reach $200,000 by 2025?

In recent years, Bitcoin has received significant attention from institutional investors, bolstering its emerging position as a mainstream asset and challenging skepticism in some corners of the financial world.

With Trump returning to the White House, the future of Bitcoin looks brighter. How high will Bitcoin rise by 2025 after conquering $100,000?

The simple answer to this question is $200,000 by the end of 2025 as investment flows from institutional investors continue to pour into the market.

Markus Thielen, CEO of 10x Research, said, "Based on the power law model, Bitcoin's price will reach a minimum of $157,346 with a target of $315,323 as you can see, this model has predicted the range quite accurately."

André Dragosch, Director and Head of Research at Bitwise, said, "Our official view is that Bitcoin could reach $200,000 by the end of 2025."

"We also expect a similar amount of money to flow into global Bitcoin ETPs next year, which will also exacerbate Bitcoin's supply shortage," he said.

Macroeconomically, the continued loose monetary policy amid weak growth will also provide momentum for Bitcoin and cryptocurrency in 2025.