Industry experts believe that Bitcoin (BTC) will soon reach its all-time high (ATH) of $100,000. While this figure seemed like a lofty target a few months ago, BTC surpassing $90,000 on November 13 indicates that the asset is on track to reach $100,000. A new ATH for BTC was also recorded on November 19 when the asset rose to $94,000.

Current factors driving Bitcoin to $100,000

Daryll Netscher, Founder of Tren Finance, shared with Cryptonews that there are several related factors driving Bitcoin towards the $100,000 milestone.

“First, we are witnessing unprecedented institutional adoption amidst significant political changes. Following Donald Trump's recent victory in the U.S. presidential election, market sentiment has been bolstered by expectations of a more cryptocurrency-friendly regulatory environment,” Netscher said. “The approval and launch of spot Bitcoin exchange-traded funds (ETFs) have also created a more accessible path for traditional investors.”

Netscher believes that the current institutional framework will provide a stronger foundation for Bitcoin's growth compared to previous bull runs.

He also pointed out that the broader macroeconomic environment is favorable for Bitcoin investment.

Netscher stated: "The Bitcoin halving event in 2024, which typically occurs before price surges, coincides with a period of increasing institutional interest, creating a unique combination of supply reduction and growing demand."

This has been demonstrated, as the current BTC price surge has led Bitcoin proponents like MicroStrategy (MSTR) and Metaplanet to announce new BTC purchases this week. Notably, MicroStrategy now holds 1.5% of the total supply of the asset.

While the $100,000 price point for BTC will be a significant milestone, Tim Enneking, Founder and Principal of Digital Capital Management, told Cryptonews that the price of Bitcoin is trending upward regardless of current factors.

Enneking said: “Bitcoin is rising due to deflationary conditions, inflation of fiat currencies, fear of missing out, and the fact that no entity controls this asset.”

Enneking added that the increasing dependence on the Internet is a reason for Bitcoin's price increase. He believes this is due to the transferability associated with cryptocurrencies like Bitcoin.

“For something to qualify as money, it must now be easily transferable. Cryptocurrency ultimately is transferable,” he said. “And while I believe there’s nothing in the cryptocurrency space close to a currency, the idea of a transferable form of significant wealth is a big idea.”

Enneking points out that it will be interesting to see what President-elect Trump thinks about establishing a strategic Bitcoin reserve fund during his term.

Enneking also noted that Bitcoin's volatility is decreasing. He believes this is due to the changing profile of cryptocurrency investors that occurs every 18 months.

“In the past 18 months, institutions have entered the fray and established Bitcoin ETFs,” he said. “Every 18 months, there’s a new investor profile, reducing Bitcoin’s volatility.”

$100,000 BTC means for institutional and retail adoption

Bitcoin reaching $100,000 will impact both institutional and retail investors. However, Enneking points out that institutions are less likely to react impulsively to this psychological milestone.

“For institutional investors, this is just another number, but the psychological impact of a $100,000 Bitcoin price will have a significant effect on retail investors. The fear of missing out will also grow larger as Bitcoin reaches $100,000,” Enneking explains.

Netscher further stated that this price point could drive a breakthrough change in how cryptocurrencies are integrated into the broader financial system.

“Institutionally, this achievement will validate the arguments of early institutional adopters while creating a new basis for portfolio allocation,” he said. “We have seen large financial institutions maintaining small cryptocurrency positions, but the maturity of this market may push for a more systematic approach to allocating digital assets.”

Netscher believes that the increasing market capitalization will make Bitcoin too important for institutional investors to overlook.

This is likely to lead to standardized cryptocurrency allocation models similar to those used for gold and other alternative assets.

Agreeing with Enneking, Netscher added that the retail landscape is likely to undergo an even more profound transformation.

Netscher explains: “This milestone will generate unprecedented media attention and public interest, but more importantly, it will affirm the 'digital gold' narrative for a wider audience. Enhanced visibility is likely to accelerate the development of user-friendly financial products and services, making cryptocurrency more accessible to average investors.”

While this has been demonstrated with the emergence of Bitcoin ETFs, Netscher hopes to see Bitcoin-based products become standard services on traditional banking platforms.

Bitcoin has the potential to reach $100,000 and beyond

While the price of Bitcoin still fluctuates around $93,000, Netscher believes that the current market structure suggests that the $100,000 milestone may ultimately serve as a stepping stone rather than a barrier.

He stated: “The combination of institutional adoption through ETFs, professional market makers, and long-term investment strategies creates a more sustainable foundation for price exploration compared to previous cycles, suggesting the potential for continued growth.”

Enneking predicts Bitcoin will surpass $100,000 and reach at least $120,000 by the end of next year.

“Historically, there have always been corresponding cycles lasting 4 years. After the BTC halving event, there is always a lag of about 6 months before the BTC bull market begins. This usually lasts about a year and is quite stable,” he said.

Netscher further explains that the combination of supply impact from the 2024 halving event, along with the maturing institutional infrastructure, creates particularly favorable conditions for the sustainable growth of Bitcoin.

However, he noted that while the path to Bitcoin surpassing $100,000 may be supported by stronger fundamental factors, it is likely to include periods of consolidation and correction.

“However, these may be less severe than previous cycles as we are witnessing more complex market participation,” Netscher said.