Institutions are optimistic, $100,000 is just around the corner
Since Donald Trump won the election as President of the United States on November 5, 2024, the price of Bitcoin has soared, hitting all-time highs. Bitcoin prices could hit $200,000 by the end of next year as market momentum builds, according to analysis by Bernstein and Standard Chartered Bank. However, the market is more focused on whether Bitcoin can break $100,000 before the end of the year. According to previous reports by Zombit, the cryptocurrency prediction market platform Polymarket showed that the prediction market trading volume for Bitcoin to exceed $100,000 in 2024 has exceeded $3 million, and traders believe that the possibility of achieving it reaches 59%.
Michael Cahill, CEO of Douro Labs, believes that it is only a matter of time before Bitcoin reaches $100,000, noting that the current macro environment is very favorable for digital assets. Nascent investment strategist Matt Klein also believes that Bitcoin will reach the $100,000 target by Trump’s inauguration at the latest.
Institutional funds began to enter the market, but the FOMO effect was not fully released.
Market observers pointed out that this rebound was not driven solely by retail investors, but was supported by institutional funds. Matt Hougan, chief investment officer at Bitwise, said that as more long-term holders are unwilling to sell Bitcoin at prices below $100,000, there is less selling pressure in the market, which gives Bitcoin more room to rise.
However, Tides.Network CEO Chandra Duggirala believes that although Bitcoin prices may reach $100,000 before Thanksgiving, the true “FOMO effect” has not yet been fully unleashed. Once Bitcoin breaks through $100,000, more retail investors and wealth managers may start to enter the market, pushing the price even higher.
Policy and legal changes support long-term growth
In addition to market momentum, policy aspects also provide support to Bitcoin. The bill introduced by Wyoming Senator Cynthia Lummis aims to have the U.S. Treasury purchase 1 million Bitcoins over five years to combat the risk of a declining dollar. Additionally, Lummis has proposed a stablecoin bill to further promote cryptocurrency adoption.
With Trump's economic policies likely to weaken the dollar and a crypto-friendly Congress taking office, BitMEX founder Arthur Hayes predicts that this policy trend will stimulate demand for scarce assets such as Bitcoin, thereby driving up its price. Against this backdrop, Bitcoin, with its scarcity and anti-inflation properties, may become a sought-after safe-haven asset among investors.
“As the circulating supply of Bitcoin dwindles, the largest number of fiat currencies ever will chase this safe-haven asset, not just from Americans, but from investors in China, Japan and Western Europe.”
Arthur Hayes believes Bitcoin is on track to hit a price of $1 million and advises investors to "hold it for the long term."
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