Bitcoin, the world’s largest cryptocurrency, shattered the $100,000 barrier for the first time on December 4, 2024, capping a meteoric 139% surge this year.
The milestone, reached just weeks after hitting $99,000 on November 22, was propelled by President-elect Donald Trump’s nomination of crypto advocate Paul Atkins as the next chair of the Securities and Exchange Commission (SEC), sparking euphoria among investors.
The cryptocurrency peaked at $104,000 early Thursday, December 5, pushing its market capitalisation to $2.1 trillion, rivalling the combined worth of Mastercard, Walmart, and JPMorgan Chase.
Since Trump’s election victory on November 5, Bitcoin has soared over 45%, driven by expectations of lighter regulation and pro-crypto policies under the incoming administration.
Trump’s Influence and Market Momentum
Trump, once a vocal Bitcoin doubter who called it a “scam”, reversed course during his 2024 campaign, promising to make the U.S. the “crypto capital of the planet”.
His pledge to replace current SEC Chair Gary Gensler, known for aggressive crypto enforcement, with Atkins—a former SEC commissioner and co-chair of the crypto-focused Token Alliance—ignited a rally.
Trump celebrated the milestone on Truth Social, posting, “CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!!”
Analysts attribute the surge to multiple factors. The SEC’s approval of spot Bitcoin exchange-traded funds (ETFS) in January 2024, led by firms like BlackRock and Fidelity, drew $31 billion in net inflows, making Bitcoin more accessible to institutional and retail investors.
The April 2024 Bitcoin halving, which cut the daily issuance of new coins, further tightened supply, amplifying price gains. Corporate adoption, led by MicroStrategy’s $402,100 Bitcoin holdings, also bolstered confidence.
BTC Volatility
Despite the jubilation, Bitcoin’s history of volatility looms large. After peaking at $108,000 in mid-December, it dipped to $92,000 during the holiday season before reclaiming $100,000 on January 6, 2025.
As of May 8, 2025, Bitcoin trades at $89,003.65, down 22.49% from its all-time high, with a 3.7% drop in the past 24 hours. Posts on X reflect mixed sentiment, with some users noting weak retail demand and short-term holders selling off, while institutional buying drives prices.
Critics warn of risks. “These markets move on momentum, so you need to be extraordinarily cautious,” said Kathleen Breitman, co-founder of Tezos.
Carol Alexander, a finance professor at Sussex University, cited “fear of missing out” (FOMO) among younger investors but cautioned that Bitcoin’s lack of investor protections makes it unsuitable for all.
The 2022 FTX collapse, which saw Bitcoin plummet below $16,000, remains a stark reminder of the asset’s fragility.
What’s Next for Bitcoin?
Analysts are divided on Bitcoin’s trajectory. Bernstein predicts a cycle-high of $200,000 by late 2025, citing reduced regulatory risk and growing institutional adoption. Swan Bitcoin CEO Cory Klippsten forecasts a 50% chance of surpassing $109,000 by June 2025, despite short-term macroeconomic uncertainties like Trump’s tariff policies.
However, Timothy Peterson expects Bitcoin to trade between $85,000 and $95,000 for the next 6 to 12 weeks before rebounding to $100,000.
The Trump administration’s proposed crypto strategic reserve has generated buzz but failed to lift prices recently due to unclear details on government purchases.
Meanwhile, Federal Reserve Chair Jerome Powell likened Bitcoin to “digital gold,” and Russian President Vladimir Putin suggested it as an alternative to the U.S. dollar, adding geopolitical fuel to the rally.
Investor Caution Urged
As Bitcoin hovers near $100,000, experts urge caution. “It’s not a straight line up,” said Mike Novogratz, CEO of Galaxy Digital.
“Investors should consider taking gains.” With $4 billion in ETF inflows since the election and MicroStrategy’s continued buying, the market remains dynamic but precarious.
