Bitcoin has reached a significant milestone, achieving a six-figure trading level for the first time since its inception. On Thursday, this cryptocurrency hit an all-time high of $103,679, marking a gain of over 140% year-to-date, with a market capitalization surpassing $2 trillion.
This achievement has reignited enthusiasm among the investor community, solidifying Bitcoin's position as a significant player in the global financial markets.
Despite achieving this impressive milestone, Bitcoin has experienced a slight pullback. As of the time of writing, it is trading at $101,573, still up 6% in the past 24 hours.
What will happen next?
The market intelligence platform IntoTheBlock commented on this development, providing insights into Bitcoin's potential trajectory. Analysts on the platform emphasized that Bitcoin's supply cap and the growing interest from institutional investors and even nations create tremendous upward potential.
Bitcoin breaks $100,000!
This is a significant milestone, but what’s next?
With limited supply and strong interest from large investors (even nations), the potential seems limitless. However, we suggest reviewing previous cycles to assess the potential.
However, past cycles indicate diminishing returns, with historical post-halving cycles showing a return of 7,900% in 2013, 2,560% in 2017, and 594% in 2021.
According to these trends, IntoTheBlock expects a more conservative growth for Bitcoin prices after the halving, with an increase between 100% and 200%, peaking between $130,000 and $190,000. Analysts at IntoTheBlock specifically noted:
Therefore, while some call for one million dollars per Bitcoin, a more reasonable expectation is a return of 100%-200% following the halving, with peak prices between $130,000 and $190,000.
However, analysts also pointed out: 'Of course, unless Bitcoin becomes a global reserve asset.'
Analyze market trends and investor behavior
Meanwhile, an analyst from CryptoQuant provided further insights into Bitcoin's recent performance and market behavior. According to this analyst, Bitcoin purchase volumes are steadily rising, and the Coinbase Premium Index reflects strong buying activity in the U.S.
The index tracks the price differences between Coinbase Pro and Binance, showing continued positive data, indicating active participation from U.S. investors.
Analysts emphasize that in addition to conducting broader trend analyses, monitoring this index is also important. For example, during periods classified as the 'fear phase', buyers retreat, bearish momentum fails to materialize, and the market typically creates opportunities for strategic entry points.
If the index remains in positive territory, it indicates that the upward trend will continue, and pullbacks are the best time to build positions. Before Bitcoin reaches what analysts refer to as the 'overbought phase', long positions should be held, while profit-taking positions should be ensured to reduce risk.
