Bitcoin made history on Wednesday night by surpassing the $100,000 mark for the first time. This milestone was achieved amidst encouraging comments from global leaders, including Russian President Vladimir Putin, Federal Reserve Chairman Jerome Powell, and the nomination of Paul Atkins as the next SEC chair by former President Donald Trump.
Analysts have set price targets well above $100,000 for Bitcoin due to its increasing demand and limited supply. Despite the possibility of volatility, experts believe it may not be as severe as in past cycles. Bitcoin’s price soared past $100,000 on Wednesday night, with some analysts predicting it could remain at this level.
The nomination of Paul Atkins as the next SEC chair by Trump was seen as a positive development for the crypto industry. Trump congratulated Bitcoin holders on the price milestone and seemed to take credit for it. Putin’s comments at an investment conference further boosted Bitcoin, as he stated that the U.S. was undermining the dollar’s role as a global reserve currency, prompting some countries to look for alternatives like Bitcoin.
Federal Reserve Chair Jerome Powell also made a rare comment on Bitcoin, comparing it to gold rather than a competitor to the dollar. Analysts at Bernstein agreed, expecting Bitcoin to replace gold as the premier ‘store of value’ asset over the next decade.
A key factor supporting Bitcoin’s future gains is its finite supply. With only 21 million Bitcoin that can ever exist and increasing demand, the price is expected to rise over the long term, despite potential periods of volatility.
Kraken’s Head of Strategy, Thomas Perfumo, has noted the explosive demand for a commodity with a fixed supply that does not respond to price signals. This is particularly evident in Bitcoin, which, unlike traditional commodities like oil or precious metals, does not see an increase in production to meet demand.
After surpassing the psychological $100,000 mark, previous Bitcoin price predictions for the year no longer seem insurmountable. Bernstein analysts have stated, ‘We remain convinced $100,000 is not the final milestone. We expect Bitcoin to hit a cycle-high of $200,000 in late 2025.’ They further predict the price per Bitcoin to rise to $500,000 by 2029 and $1 million by 2033.
Technical analysis indicates that Bitcoin could potentially reach $129,930, with support levels at $90,500 and $80,500 on the lower end, in case profit-taking leads to a downtrend. It’s crucial to remember that pullbacks are a part of any bull market, but according to Bitwise Chief Investment Officer Matt Hougan, Bitcoin price drops may be less severe in the future.
MicroStrategy chairman Michael Saylor asserts that Bitcoin’s finite supply, its outperformance against stock markets, and its inherent volatility make it a superior investment compared to other commodities like gold. Saylor described volatility as ‘a feature, not a bug,’ of a market that operates 24/7, 365 days a year globally, in an interview with CNBC.
