Bitcoin Rockets Past $100,000: Tipped for $120,000 by Early 2025 After Pro-Crypto SEC Chair Announcement
Bitcoin made history yesterday, surpassing $100,000 for the first time and sparking predictions of an even greater surge to $120,000 early next year. The milestone comes on the heels of Donald Trump’s victory in the U.S. presidential election and his announcement to appoint pro-crypto advocate Paul Atkins as chairman of the Securities and Exchange Commission (SEC).
The cryptocurrency, which was trading at $66,077 before the election, surged to $99,395 within two weeks. The decisive $100,000 breakthrough followed Trump’s announcement, accompanied by a social media post directed at Bitcoin investors: “You’re welcome.”
Bullish Momentum Driven by Pro-Crypto Policies
Analysts are attributing the rally to optimism over Trump’s promise to make the U.S. the “crypto capital of the world.” According to Tony Sycamore, an analyst at IG Markets, Atkins’ appointment is a game-changer. “This is likely to be the catalyst for the next wave of momentum-buying,” he said, predicting Bitcoin could reach $105,000 soon and $120,000 in early 2025.
Scarce Supply and Halving Effects
Bitcoin’s price dynamics are heavily influenced by its constrained supply. There are fewer than 21 million bitcoins in existence, with approximately 75% held by long-term investors. This limits the number of coins available for active trading, creating upward pressure on prices as demand rises.
Adding to this supply squeeze, the recent Bitcoin halving in April cut mining rewards—the fees miners receive for validating transactions and creating new bitcoins—by 50%. This event, which occurs every four years, reduces the rate at which new bitcoins enter circulation, further tightening supply.
Thomas Lee of Fundstrat Global Advisors highlighted the growing scarcity: “The exchanges are concerned because there is a pretty low supply of Bitcoin available over the counter. So, you have a supply shortage, and Bitcoin itself makes a move above $100,000.”
Room for Growth in the Bull Market
While Bitcoin has already more than doubled in value this year, many experts believe the rally has further to go. Simon Peters, an analyst at eToro, noted that Bitcoin typically peaks 12 to 18 months after a halving event, suggesting the current bull market is still in its early stages.
“We’re still reasonably early in this bull market if past years and cycles are anything to go by,” Peters explained. However, he cautioned that short-term volatility could lead to a pullback before the upward trend resumes.
Profit-Taking and Market Psychology
As Bitcoin crosses psychologically significant milestones like $100,000, some investors may lock in profits, potentially causing temporary price dips. Peters remarked, “We’ve hit a psychologically important milestone that could see some people take some of their chips off the table, feeling now is the time to bank some profits.”
Outlook: A Transformative Year Ahead
With supply constraints, growing institutional interest, and favorable regulatory developments, Bitcoin’s trajectory remains firmly upward. The cryptocurrency’s historic climb past $100,000 marks a pivotal moment, underscoring its growing legitimacy in global finance.
As Trump’s pro-crypto administration takes shape and market forces align, Bitcoin appears poised for another remarkable year, potentially cementing its status as a transformative asset class in 2025.
