Bitcoin Surges Towards $100,000: Who's Driving the Rally and What's Next
Today, $Bitcoin (BTC.CC)$ continued its strong upward momentum, successfully breaking through the $99,000 mark, with the $100,000 milestone now within reach.
It's worth noting that Bitcoin has already increased nearly five-fold over the past two years, with its price surging over 130% year-to-date.
With the continuous stream of positive news in the cryptocurrency space, Wall Street generally expects Bitcoin to reach $200,000 by the end of 2025.
"The massive psychological barrier of $100,000 is now within sight," said Caroline Mauron, co-founder of Orbit Markets, a crypto derivatives liquidity provider. She added that bets in the Bitcoin options market indicate "the market expects prices to rise rapidly."
Galaxy Digital CEO Mike Novogratz warns that Bitcoin's rise to $100,000 might face a pullback due to high market leverage. While he believes reaching $100,000 is "inevitable," with prices recently hitting $99,000, Novogratz predicts a possible correction to $80,000, a 20% drop from the six-figure mark. Despite this potential setback, he remains bullish on Bitcoin's long-term prospects.
The recent rise in Bitcoin's value is closely tied to a series of positive developments.
According to media reports, President-elect Trump's team is in discussions with the digital asset industry about potentially creating a new position in the White House specifically responsible for cryptocurrency policy. This would be the first-ever position in the White House dedicated to the crypto industry, highlighting the prominence of the crypto sector in the Trump administration.
For an industry that has moved from the fringes to the mainstream over the years, establishing a dedicated cryptocurrency position in the White House would be another significant victory.
Furthermore, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler announced on Thursday that he plans to step down on January 20, 2025 (the day President-elect Trump is sworn in). This news was met with jubilation by cryptocurrency bulls and directly contributed to Bitcoin's push towards the $100,000 mark.
Additionally, it is worth noting that the AUM of ETFs directly investing in Bitcoin have been continuously climbing. On Thursday, they surpassed the $100 billion mark for the first time. According to figures from Bitcoin Archive, this AUM is expected to surpass that of gold ETFs in the U.S. market. As of November 21, the AUM of U.S. gold ETFs was approximately $120 billion.
In addition to these Bitcoin spot ETFs, other related concept stocks have also been sought after in this wave of market activity (see the image below), especially MSTR, which often experiences larger gains than BTC. However, due to its high premium relative to the market value of its own Bitcoin holdings, it also comes with valuation risks. Recently, Citron Research posted on the social media platform X, stating that they remain bullish on Bitcoin but have hedged their position by shorting $MicroStrategy(MSTR)$
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