March 11, 2024 at 12:04 GMTModified date: March 11, 2024 at 12:04 GMT
March 11, 2024 at 12:04 GMT

Bitcoin sets new ATH above $71K: Could $100K be the next milestone for BTC?

The market cap of Bitcoin has now surpassed $1.4 trillion, overtaking silver and positioning itself as the eighth largest asset globally.

Bitcoin sets new ATH above $71K: Could $100K be the next milestone for BTC?

Bitcoin’s ($BTC) value soared past the $70,000 mark on Friday and continued its ascent into early Monday, surpassing $71,000 to set new all-time highs.

The exact peak varies across different platforms, with the top coin hitting $71,839 on Coinbase, $71,741 on CoinGecko, and $71,830 on CoinMarketCap.

This surge comes just days after Ethereum ($ETH) crossed the $4,000 threshold, marking a significant week for the cryptocurrency market.

Bitcoin’s market capitalisation now exceeds $1.4 trillion, surpassing silver to become the eighth largest asset globally.

However, it remains behind industry giants such as Microsoft, Apple, and Google’s parent company, Alphabet. Nevertheless, this remarkable rise has sparked conversations around Bitcoin’s potential to reach the $100,000 milestone.

Catalysts of the rally

The recent price surge can be attributed to several key factors. The introduction of spot Bitcoin exchange-traded funds (ETF) in the United States has been a significant driver, attracting a new wave of institutional investors. 

These ETFs have added a substantial amount of Bitcoin to their holdings, now managing about 4% of the total Bitcoins in circulation.

The market is also buzzing with anticipation ahead of the Bitcoin halving scheduled for 20 April, which will reduce the mining reward by half.

This time, the mining rewards will be reduced from 6.25 $BTC ($418,800) to 3.125 $BTC ($209,400). The event is historically associated with price increases due to the reduced rate of new Bitcoin entering the market.

Bitcoin’s recent performance, including its highest-ever weekly close at 68,955 on 10 March happened just days after Bitcoin breached its previous all-time high of $69,200 on 5 March.

It also follows a successful week for spot Bitcoin ETFs which has seen over $2.2 billion in inflows last week, with BlackRock’s Bitcoin ETF alone managing over $13.5 billion in assets.

Other major cryptocurrencies, like Ethereum ($ETH) and Binance Coin ($BNB), have also experienced significant gains, further indicating a robust market environment.

Is $100K on the horizon?

Digital asset managers, including Bitwise, predict that more institutions will enter the Bitcoin market by the end of June, potentially bringing trillions of dollars into the space. 

Despite the new highs, Bitcoin whales have continued to hold onto their assets, indicating a belief in further price appreciation.

Awell-known figure in the cryptocurrency community and the co-founder of Morgan Creek Digital Assets, Jason Williams, has been vocal about Bitcoin’s potential, especially in light of its recent achievements. 

Following Bitcoin’s surge past the $70,000 mark, Williams expressed his enthusiasm on social media, heralding the beginning of what he calls the “Bitcoin Price Discovery Era”.  

This term suggests that Bitcoin is now navigating through uncharted territory, with its value being determined by new market dynamics and investor sentiments, rather than past performance metrics.

Williams believes that this new era could lead to unprecedented levels for Bitcoin as it gains acceptance and recognition as a legitimate financial asset. His optimistic view is based on the increasing institutional interest and the broader financial ecosystem’s gradual pivot towards digital currencies. 

Williams’ perspective offers a bullish outlook for Bitcoin, suggesting that the climb to $100,000 could be not just possible but probable, given the current market trends.

The CEO of Galaxy Digital, Mike Novogratz, is another influential voice in the cryptocurrency space, known for his bullish stance on Bitcoin. In a recent interview with Fox Business, he discussed $BTC’s potential to reach new heights.

According to him, a significant role has been played by spot Bitcoin ETFs in providing easy access for the boomer generation to invest in Bitcoin. This demographic controls a vast portion of the world’s wealth, and their entry into the cryptocurrency market represents a substantial influx of capital. 

Novogratz pointed out that even small allocations from this wealth pool could have a massive impact on Bitcoin’s price.

When asked about the potential for Bitcoin to reach $100,000, he expressed confidence, citing the “runaway momentum” in spot Bitcoin ETFs and the “tremendous global demand for Bitcoin”.

His predictions are not just based on market sentiment but also on the structural changes within the financial ecosystem that support a sustained increase in Bitcoin’s value.