Bitcoin Has Surged Above $100,000, Can It Stay There?

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Bitcoin rose above $100,000 for the first time on Wednesday evening.
The move followed comments from Russian President Vladimir Putin and Federal Reserve Chairman Jerome Powell about the crypto asset, as well as Donald Trump’s appointment of Paul Atkins as the next SEC chairman.
Due to increasing demand and limited supply, many analysts have set Bitcoin price targets well above $100,000.
There may be volatility in Bitcoin prices, but it may not be as severe as in previous cycles.

Bitcoin (BTCUSD) rose above $100,000 for the first time on Wednesday evening, and analysts expect it could stay there.

Encouraging words from Russian President Vladimir Putin, US Federal Reserve Chairman Jerome Powell and President-elect Donald Trump for chairman of the US Securities and Exchange Commission sent Bitcoin to a high of over $103,000. It is currently trading at over $101,000.

Bitcoin bulls remain confident that the cryptocurrency will continue to trade above $100,000 despite past volatility.

Bitcoin investors rejoiced on Wednesday after Trump appointed cryptocurrency advocate Paul Atkins to head the SEC. The agency’s enforcement approach to the crypto industry under its current head, Gary Gensler, caused market watchers to closely monitor this appointment. Gensler announced he would resign on January 20.

Trump took to Truth Social to congratulate Bitcoin holders and seemingly acknowledge the cryptocurrency’s recent price milestone. “CONGRATULATIONS BITCOINERS!!!,” Trump posted. “$100,000!!! You’re welcome!!! Together we will make America great again!”

Since Trump won the 2024 US presidential election, Bitcoin has been on the rise as his victory is expected to be a positive development for the crypto industry as a whole. After all, Bitcoin was still trading below $70,000 on election day.

Putin encouraged Bitcoin investors even more. At an investment conference on Wednesday, Putin said the U.S. was undermining the dollar’s role as a global reserve currency by using it for political purposes, forcing some countries to look for alternatives. Reuters reported.

“For example, Bitcoin. Who can ban it? Nobody,” Putin said

While Bitcoin proponents have long touted the cryptocurrency as “digital gold,” Fed Chairman Powell said the same in a rare comment from a policymaker on the topic.

“It is not a competitor to the dollar. It’s really a competitor to gold,” Powell said Wednesday.

Bernstein analysts agreed.

“We expect Bitcoin to emerge as the premier store of value of the new era over the next decade, eventually replacing gold,” they wrote in a note on Thursday.

One factor that doesn’t deter Bitcoin believers is the fact that there can only be 21 million Bitcoins in existence at any one time. Given limited supply and increasing demand, basic economics dictates that the price must rise in the long term, even if there are periods of strong volatility.

“You have an explosive demand for a commodity whose supply is fixed and does not respond to price signals,” said Thomas Perfumo, head of strategy at Kraken. “For traditional raw materials such as oil or precious metals, we see companies refining and mining these resources increasing their production to meet demand.”

After breaking through the psychological barrier of $100,000, many of the Bitcoin price predictions from earlier in the year suddenly no longer seem insurmountable.

“We continue to believe that $100,000 is not the final milestone. We expect Bitcoin to reach a cycle high of $200,000 in late 2025,” Bernstein analysts wrote. They also expect the price per Bitcoin to rise to $500,000 by 2029 and $1 million by 2033.

Technical analysis suggests Bitcoin could rally to $129,930, although it offers support at $90,500 and $80,500 on the lower end if profit-taking triggers a downtrend.

It’s important to remember that in any bull market there will still be pullbacks; However, according to Bitwise Chief Investment Officer Matt Hougan, Bitcoin price declines may be less severe in the future.

Michael Saylor, chairman of MicroStrategy, insists that Bitcoin’s limited supply, its outperformance of the stock market and its inherent volatility make it a better investment opportunity than other commodities such as gold.

Volatility is “a feature, not a bug” of a market that trades globally 24 hours a day, 365 days a year, Saylor said in an interview with CNBC earlier this week.

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Bitcoin Has Surged Above $100,000, Can It Stay There?

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