Recently, Bitcoin came to the forefront for reaching a high of $98,000, closing in on the $100,000K mark. According to the recent reports, Bitcoin will probably surpass the $100K by 2025. The event has consequently boosted the whole crypto industry.
Donald Trump’s reelection as the President of the United States could have been one of the reasons that sparked the sudden rise of Bitcoin. This sudden surge is expected to cause Bitcoin to hit the trillion club once again. Crypto analysts have predicted that if the cryptocurrency manages to surpass $100K, it will most likely reach a market cap value of $2,5 trillion.
Some Factors That Might Have Led To The Sudden Rise
- Donald Trump’s Win:
Initially, Donald Trump did not pay much heed to the importance of digital currency and was even against Kamala Harris’s agenda to make the U.S. the crypto capital. But his campaign for the Presidential Elections in 2024 accepted donations as cryptocurrency and even launched a platform where people could trade cryptocurrencies. Trump has earlier made promises to enhance the industry and remove the regulatory implications on cryptocurrency.
- Approval Of Spot Bitcoin ETFs:
A spot Bitcoin ETF was approved by US regulators earlier in January this year. Investors were allowed to gain exposure to Bitcoin without even holding it. This way of investing might be one of the reasons that led to the rise of Bitcoin during the month of the elections.
Why Does The Price Of Bitcoin Keep On Rising?
Bitcoin is one of the most popular and largest cryptocurrencies in the world. Since its launch, it has gathered more than millions of users, followed by a strong supporting community. Hundreds of investors trade Bitcoin in a single day, and yet the supply never becomes scarce.
This increases the value of the cryptocurrency day by day. As it is a digital currency and can divide more, it will never become scarce in quantity.
Both retail and institutional investors largely embrace Bitcoin. Its high value has attracted investors. Bitcoin has also gained much popularity in countries like Venezuela, where the inflation rates are much higher, thus reducing the value of cryptocurrencies.
Despite its higher surges in prices, Bitcoin has also faced several drawbacks and challenges. One major reason is the volatile nature of the crypto markets. In 2022, the value of Bitcoin with other leading cryptocurrencies like Ethereum suffered a significant drop. However, 2024 has been a successful year for Bitcoin investors.
The Potential Impact After Bitcoin Reaches The $100K Mark
- Market Reactions And Improved Profits:
Naturally, Bitcoin will receive huge appreciation from investors for hitting such a milestone price. The sudden surge is sure to attract both retail and institutional investors from the crypto industry. If Bitcoin manages to surpass $100K, it will be able to strengthen and stabilize its status in the mainstream market. This would also bring more capital to the crypto project. It would also prove beneficial in attracting more audiences to the world of digital currency.
- More Countries Will Legalize Crypto Investments:
The rapid growth of Bitcoin will eventually let other countries acknowledge the potential factors of a digital currency. These include the many countries that have not yet completely legalized the practices of crypto trading and many crypto projects. Recently China legalized cryptocurrency after years of a stringent ban. This approach will eventually inspire other nations to open the door to cryptocurrency thus expanding the digital currency era.
- Impact On The Global Economy:
Apart from increased adoptions of cryptocurrency, the sudden surge would also cause new competition and traffic in the financial ecosystem. As the value of Bitcoin increases, intermediaries like banks and other financial institutions would be under constant pressure to provide more purchasing options for the cryptocurrency. This would lead to lower transaction fees and will eventually increase the speed and efficiency of the financial systems.
However some regulatory risks and implications will also mostly abide by the benefits. Government officials will be forced to consider more regulations to restrict the growth of cryptocurrency to support the financial ecosystem and the security interest of the consumers.
The Bottom Line
Bitcoin hitting the 100K mark has surely shaken the whole crypto industry. A sudden surge is said to impact the industry more positively. Apart from its influence on the industry, the rise has also increased the value of Bitcoin and made it easier to transact than commodities like gold.
There are higher chances of Bitcoin surpassing the $100K mark by 2025, even though it is not guaranteed yet. Even though the future of Bitcoin looks promising with higher chances of becoming a global reserve currency, the volatile nature of the market can change the whole situation.
