Bitcoin Hits $100,000 - Sets An All-Time High Record

This article is intended to explain the great moment when Bitcoin first broke the $100,000 mark in history, investigating the reasons for such a wonderful price increase, forecasts, and possible risks of the near and far futures of the major cryptocurrency. We will see whether this is sustainable success or just a high before the market faces a significant correction.

BITCOIN OFFICIALLY BREAKS $100,000: A HISTORICAL MILESTONE

On December 5, 2024, Bitcoin created history when it crossed the psychological barrier of US$100,000 for the first time. The surge has marked an exceptional rise for Bitcoin since the start of 2024, at an over 140% increase. It has been a jaw-dropping moment for investors worldwide and placed Bitcoin among the top digital assets. Bitcoin reached an all-time high of $103,844.05 before slightly correcting.

FACTORS DRIVING THE DRAMATIC PRICE INCREASE OF BITCOIN

The main factors that might have caused this wild upsurge in the price of Bitcoin in 2024 include:

Institutional acceptance: The introduction of Bitcoin ETFs by larger investment firms like BlackRock, Fidelity, and Invesco has pumped much-needed capital into the Bitcoin market, pushing up the prices. Bitcoin ETF inflows have surpassed $29.3 billion this year so far, with data from Farside indicative of increased institutional confidence in Bitcoin.

Crypto-friendly policies: The election of Donald Trump as U.S. President, together with the appointment of Paul Atkins – an outspoken crypto-endorser – as Chairman of the SEC, has kept speculations of more friendly regulations well alive. Besides, discussions around making a national Bitcoin reserve and creating an exemption for crypto transaction taxings drive market sentiment massively.

Halving event: The newly mined supply of Bitcoin was further reduced since the Bitcoin halving event came rather early in the year 2024, hence placing upward pressure on prices with continued demand.

Increased retail investment: the concept of FOMO, or Fear of Missing Out, heralded a lot of retail investors into the fray, thus pushing up demand.

Factor	Description	Impact on Bitcoin Price
Bitcoin ETFs	Approval and launch of Bitcoin ETFs by major firms	Sharp rise
Crypto-friendly policies	Friendly policies by the new administration	Sharp rise
Halving	Reduction of Bitcoin mining rewards	Increase
FOMO	Fear of missing out on the part of retail investors	Sharp rise