Bitcoin Unstoppable Breaks $90,000! What's Next?

Bitcoin reached an all-time high (ATH) of $93,000 on Wednesday, marking a dramatic price surge driven by renewed investor confidence linked to President-elect Donald Trump. This historic surge propelled its market capitalization to $1.83 trillion, overpassing Silver.

What fueled Bitcoin price surge in 2024?

1. Spot Bitcoin ETFs Approval: The U.S. SEC’s green light for Bitcoin ETFs on 10 January 2024 was a game-changer. It opened the floodgates for retail investors, driving demand and sending Bitcoin past its previous ATH.
2. Bitcoin Halving Event: On 19 April 2024, Bitcoin underwent its scheduled halving, cutting mining rewards to 3.125 BTC. Historically, halving events reduce supply and act as a catalyst for price increases. Bitcoin’s price at the time of the halving was $64,262, but by October, it had surged significantly.
3. Federal Reserve Rate Cuts: September brought a 50 bps rate cut from the U.S. Fed, while the Bank of Japan held rates steady. These moves fueled market optimism, leading to a 3% BTC rally shortly after.
4. The “Trump Trade” Effect: Finally, investors are betting on more favorable crypto regulations under Trump’s administration, boosting confidence and market activity.

Can Bitcoin still hit $100k in 2024?

The $100,000 mark is definitely the next major psychological milestone for Bitcoin. Market analysts predict that supportive regulatory changes, growing institutional adoption, and further ETF expansion could drive Bitcoin’s next leg up. Additionally, a potential Federal Reserve rate cut in December might provide an extra boost to the rally.

But what does this mean for investors?

Among the myriad predictions, the bottom line remains that Bitcoin’s journey to $90,000 proves its resilience and growing role in the global financial system. We welcome exposure to Bitcoin and other digital assets, but they should be part of a diversified portfolio, managed with careful consideration of risks and market volatility. The next big milestone could be just around the corner, and with careful planning, you’ll be ready to seize it.