Is it really a surprise when the hallmark for cryptocurrencies around the world is at the doorstep of reaching yet another milestone? Just a few days ago, Bitcoin was as close as it has ever been to reaching $100,000 per coin – the digital coin traded above $98,000 on 25 November 2024.
Although currently going back a few steps, this crypto fluctuated around $92,000 at the time of writing. However, the experts believe that crossing the threshold is just days away. As the pioneer of digital currencies, Bitcoin is used for various tasks today, from payments in shops to spinning the reels and rolling the dice in some of the best crypto casinos.
But why is this step for Bitcoin so important that it has shaken up the crypto world? Moreover, what happens when BTC hits $100,000? Would it have an effect on other cryptocurrencies? Let’s find out!
The Math Behind Bitcoin
Everyone in the crypto world knows one thing for sure – Bitcoin is limited to 21 million coins! No matter how much you want that to change, the math is nonnegotiable. However, what crypto traders forget is that the more the price rises, the harder it will be to deplete the BTC stash.
Simply put, at its current price, purchasing a Bitcoin is practically impossible for most people. That’s why the option to get a smaller piece of the cake is always on the table. That way, people will keep purchasing Bitcoins for years to come.
Why Is Bitcoin Rising Now?
Bitcoin was invented in 2008 – around 16 years ago. So why did it take the coin that long to reach this threshold? Why now? Let’s go over a few factors.
Lenient Crypto Policies
More and more countries are opening up their doors to cryptocurrencies. Whether for in-store purchases or online gaming, the legal regulations allow crypto to be used as a payment method. Just days ago, a court in Shanghai ruled that holding crypto is legal, prompting a lot of other countries to reconsider their stance on crypto.
On the other side of the world, the US is inching closer to a new presidency and, with that, a new view on cryptocurrencies. The president-elect, Donald Trump, has positioned himself as pro-crypto, vowing to enact policies that would benefit the digital coin market, such as establishing a national crypto stockpile, mining BTC just in America, and firing the SEC chairman, Gary Gensler.
Potential Liquidation of $1 Billion Bitcoin Shorts
It’s expected that once BTC hits the $100K mark, there will be $1 billion worth of Bitcoin short released to the public. Considering this is based on previous events (with the $75,000 price jump on BTC), these are not baseless assumptions. With the liquidation, a substantial amount of selling pressure will be lifted, allowing people to purchase more crypto and for its price to rise.
Bitcoin’s Monetary Power
As mentioned, BTC’s reach has spread over the last 16 years. From a simple digital coin that could only be traded, Bitcoin is a synonym for online transactions today. You can use it to buy products in-store or online, play games, pay for trips, and more. It all comes from the fact that Bitcoin is anonymous, secure, and within a constantly rising cycle.
Accessibility
Bitcoin is now accessible to anyone. With a few clicks of a button, you can choose a crypto platform and trade in your fiat for digital coins. The option to buy as little as $1 worth of BTC makes the asset available to literally everyone. Moreover, with Bitcoin ETFs, people get crypto coins as part of their trading portfolio, retirement plans, pension funds, and more.
How Does Bitcoin’s Rise Influence Other Coins?
Since Bitcoin is the first thing every crypto enthusiast and layman connects when you mention cryptocurrencies, it’s only natural that the coin’s rise would influence other crypto. By retracting from its upward climb, BTC caused one of the largest liquidations so far (that is still ongoing).
According to Coinglass, at the time of writing, in the last 24 hours over $567 million coins were liquidated. Ether reached $89.36 million, DOGE reached $33.54 million, while Solana came to $24.64 million.
What’s more, the surge and drop of Bitcoin prompted many traders to get back in the game and re-invest in digital coins. Many are still hoping that this downfall will present a chance for them to profit at the moment when the threshold is passed.
What Does the Future Hold for Bitcoin?
If Bitcoin can reach $100,000, then the question is, “Just how high will it go?” The answer is simple: nobody knows. Yes, there is a preset amount of BTC, but the value of the coin has no limit. As long as people keep purchasing the crypto and its acceptability grows, both legally and socially, BTC’s limit is just the (metaphorical) sky.
However, it’s good to pay attention to previous events. Passing milestones like $50,000 and $75,000, Bitcoin has always followed a certain resistance from the masses, dragging its price down. Thus, it’s safe to assume that this could happen yet again.
That being said, the coin has managed to surpass these setbacks – evident by the $100,000 mark. As a cryptocurrency, Bitcoin will fluctuate, but its bullish nature has been persistent so far, laying the foundation for a surge even beyond $100,000.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
