For cryptocurrency enthusiasts, December 5, 2024, marks a momentous day: Bitcoin finally broke the $100,000 barrier, soaring to an all-time high of $104,000.
What was once seen as an impossible psychological benchmark has been reached, driving both elation and trepidation across financial markets.
Yet, the question lingers—can Bitcoin sustain this momentum, or are we teetering on the edge of another speculative bubble?
What has caused Bitcoin to rally?
Several factors contributed to Bitcoin’s remarkable rise. The election of Donald Trump and his pro-crypto administration, including SEC Chair nominee Paul Atkins, has generated optimism about regulatory clarity in the United States.
Aided by the recent surge in inflows to Bitcoin exchange-traded funds (ETFs)—exceeding $31 billion in 2024—Bitcoin’s price has skyrocketed, climbing 126% since January, when it was valued at $44,000.
Its market capitalisation now exceeds $2 trillion, a historic milestone for any cryptocurrency.
Corporate adoption continues to play a pivotal role, with institutions like MicroStrategy doubling down on Bitcoin as a treasury asset.
Meanwhile, the fourth Bitcoin halving in April 2024 further constrained supply, amplifying price pressure as demand from retail and institutional investors surged.
Speculation over a potential U.S. “crypto czar” has only fuelled market enthusiasm.
Bullish optimism vs stark realities
Bitcoin’s ascent has reignited dreams of a decentralised financial revolution. Some experts hail this as a turning point that could establish Bitcoin as “digital gold” and a legitimate asset class. However, others caution against euphoric predictions.
Historically, Bitcoin’s rallies have been followed by sharp corrections. Analysts at Oppenheimer warn of “selling pressures” at such high price points, a phenomenon we’ve seen in past bull runs, such as the 2017 peak at $20,000, followed by a crash to under $4,000 a year later.
Additionally, as traditional investors enter the crypto space, Bitcoin risks losing the decentralised ethos that originally set it apart.
Could we see $200k by 2026?
Whether Bitcoin continues to climb or faces a pullback will hinge on several variables. Regulatory clarity, the broader economic landscape, and the sustainability of institutional interest will all be decisive.
If history is any guide, volatility will remain Bitcoin’s constant companion.
For now, Bitcoin has achieved the unthinkable: breaching $100,000 and proving that it is more than a fleeting phenomenon.
The real challenge lies in whether it can stay the course and mature into the financial mainstay its proponents have long envisioned—or whether this milestone will mark the beginning of its decline.
Only time will tell, but as with all things crypto, the ride is sure to be anything but boring.
