Bitcoin surpassed $100,000 for the first time on Thursday, marking a significant milestone in its evolution. Analysts view this as a reflection of transformative shifts in finance, technology, and geopolitics. The surge underscores the growing mainstream acceptance of digital currency, now widely utilized by investors, traders, and entrepreneurs as a medium of exchange. Cryptocurrencies operate as virtual money on decentralized online networks, with transactions recorded using blockchain technology. Bitcoin’s value has soared since Republican Donald Trump was elected president of the United States, climbing approximately 45% in the four weeks following his decisive victory, which also brought a wave of pro-crypto lawmakers into Congress.
In the past two years, Bitcoin has risen from its niche on the fringes of the financial market to becoming one of the world’s most popular investment assets and a symbol of decentralized finance. It has minted millionaires and created a whole new asset class. But it is still volatile and largely unregulated, with many experts warning of the risks involved.
After Trump’s election win, investors piled into the sector, fuelled by expectations that his administration would create a friendly regulatory environment for cryptocurrencies like Bitcoin. The rally accelerated on Wednesday after the president-elect picked Paul Atkins, a crypto advocate, to lead the US Securities and Exchange Commission.
The rise of the blockchain and the emergence of Bitcoin as an alternative to traditional banking have also driven the price of other cryptocurrencies, such as Ethereum’s Ether and Ripple’s XRP. According to CoinGecko, the total value of the cryptocurrency market has nearly doubled this year and is now worth about $3.8 trillion.
Analysts say the cryptocurrency could continue its rally and break through the $120,000 mark shortly. However, they caution that investors must weigh bitcoin’s price volatility with its underlying fundamentals. The technicals point to a bullish scenario for the token, with it breaking above a newly formed pennant on the chart and the relative strength index (RSI) flashing overbought levels. It has also broken through a resistance level of $91,000.
