Synopsis
Bitcoin is close to reaching the significant $100,000 mark. This surge is driven by various factors, including potential regulatory changes in the US and China. Experts believe this milestone could trigger a wave of developments in the crypto world. These include increased adoption by countries and potential price fluctuations. Despite possible short-term corrections, the long-term outlook for Bitcoin remains positive.
The moment the crypto world has been eagerly anticipating is almost here—Bitcoin has surged to a new all-time high of $99,500 and is now edging toward the historic $100,000 milestone. Just a year ago, Bitcoin was trading at around $30,000, marking a remarkable 300% growth in value. This incredible rally has been driven by a wave of optimism sparked by Donald Trump’s reelection as President of the United States and a staggering $30 billion net inflow into Bitcoin ETFs over the past year.
As BTC gets closer to the six-figure mark, the question arises – What happens once BTC hits $100K? There is much more significance to the $100K mark than just being a psychological mark. Given that this mark would trigger many developments in the coming weeks, let’s take a closer look at what reaching $100K could mean for Bitcoin and the broader crypto ecosystem.
More Countries Opening up Doors For Crypto
As Bitcoin inches closer to the $100,000 mark, its growing prominence is pushing countries to recognize its potential as a key to the emerging digital economy. One of the most significant developments is China’s decision to legalize cryptocurrency after years of enforcing a stringent ban on the asset. This move is likely to encourage other nations to reconsider their stance on cryptocurrencies, viewing them as viable financial instruments just to equities.
Crypto Tracker
TOP COIN SETSDeFi Tracker12.32% BuyNFT & Metaverse Tracker9.91% BuyWeb3 Tracker7.89% BuyBTC 50 :: ETH 506.99% BuyAI Tracker6.26% BuyTOP COINS (₹) BNB54,741 (2.02%)BuySolana22,111 (0.02%)BuyTether85 (-0.06%)BuyBitcoin8,325,444 (-0.37%)BuyEthereum283,061 (-1.04%)Buy
In the US, momentum is building towards regulatory clarity under the leadership of President Donald Trump, whose pro-crypto agenda has strengthened confidence in the market. With Bitcoin already being a key asset in the portfolios of both retail and institutional investors in the US, clear and supportive regulations could open new opportunities for innovation and adoption, further establishing the U.S. as a leader in the crypto space. While India is already working on a consultation paper, BTC at $100K along with US regulatory clarity might accelerate the process of setting up a regulatory framework soon.
Did you Know?
The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.
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Liquidation of Close to $1Billion Worth of Shorts
While most of the crypto community is confident about BTC hitting $100,000. Close to $1 billion worth of shorts would be liquidated once BTC hits the mark. Such liquidations are typically followed by rapid price movements as seen when Bitcoin breached the previous all-time high of $73,000. Even in this case, liquidation of such a substantial volume of shorts would remove significant selling pressure from the market. With fewer barriers to upward momentum, Bitcoin could see an extended rally until it hits the next resistance level of 101,900.
Extended Rally Under Trump’s Administration
Since Trump’s victory in the US Presidential Elections, there have been some major developments that fueled the Bitcoin rally. News on Trump’s plan to establish a dedicated White House role for crypto policy, the formation of the Department of Government Efficiency (DOGE) under the leadership of Elon Musk and Vivek Ramaswamy, Trump’s foray into the crypto payments segment and many others have strengthened the market sentiment, pushing BTC to new ATHs. Such crypto-friendly moves are expected to continue till Trump assumes office in January, further pushing BTC’s price in the near term. As Trump’s administration delivers on the promises of a “Strategic Bitcoin reserve” and works towards clearer regulations, more money from retail and institutions would flow into the market strengthening the upward trajectory.
Conclusion
While Bitcoin touching the $100k mark is the most positive boost for the crypto market, there is a possibility of profit booking in the short term pulling down the price to the support levels of $95,000. Historically, significant milestones like $40,000, $50,000, and $60,000 have seen psychological resistance dragging down the price, and a similar reaction could emerge at $100,000. Such corrections are very common in any market following a rally. Despite such corrections, the bullish sentiment on Bitcoin is strong in the long term. As the market matures, these fluctuations are expected to stabilize, paving the way for sustained growth beyond $100,000.
(The author is CEO and Co-founder of Mudrex, a global crypto investment platform. )
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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