Experts react to bitcoin's $100,000 milestone

Bitcoin hit a record high above $100,000 on Thursday as the election of Republican Donald Trump as US president fuels expectations that his administration will usher in a friendly regulatory environment for cryptocurrencies.

The world’s largest cryptocurrency was last trading at $102,900.

Since Trump’s win on Nov. 5, the price has surged around 45%, driven by a swathe of buying that has poured capital into U.S. bitcoin-backed exchange-traded funds.

DAN COATSWORTH, INVESTMENT ANALYST AJ BELL, LONDON

“Smashing through the $100,000 level does not represent bitcoin going mainstream. It’s merely a psychological factor and ultimately just a number.

“A lot of people have got rich from the cryptocurrency soaring in value this year, but this high-risk asset isn’t suitable for everyone. It’s volatile, unpredictable and is driven by speculation, none of which makes for a sleep-at-night investment.

CHANG WEI LIANG, FX AND CREDIT STRATEGIST, DBS, SINGAPORE:

Bitcoin prices are buoyant with crypto adoption possibly reaching an inflection point in the US.

The incoming Trump administration is seen as more crypto-friendly, and 2025 could see progress in setting up a U.S. Bitcoin strategic reserve, on top of changes in regulatory guidance that could help industry growth.

SHOKI OMORI, CHIEF JAPAN DESK STRATEGIST, MIZUHO SECURITIES, TOKYO

“Individual investors must be excited to see the BTC price top $100,000 following the news of Paul Atkins being nominated as SEC chair. Markets knew Gensler would be stepping down and there would be someone who is less aggressive on crypto regulations. Of course, this doesn’t mean BTC will rally forever, as there will be moves to take profits.

“I think if BTC were to rally more from here, other crypto majors should catch up a bit first, such as Ethereum. Ethereum looks cheap against Bitcoin. Ripple shot up, but again we saw profit taking at $2.80. Altos look choppy. The crypto community is looking for positive headlines to take crypto prices broadly up even higher. The tailwind from the Trump trade is starting to weaken as markets have a lot of headlines already priced in.”

JEFF MEI, COO AT BTSE, HONG KONG

“Bitcoin’s surge past the $100,000 mark is not just a milestone; it represents a pivotal moment for the cryptocurrency industry.

“The confidence is spurred by an increasingly favourable regulatory environment in the U.S., particularly with the appointment of Paul Atkins to chair the SEC. This is likely to drive further institutional investment in the sector, giving Bitcoin more credibility and leading to a new wave of adoption.

“Looking forward, Bitcoin could reach even greater heights as more institutions begin to perceive it as a viable store of value and allocate funds to Bitcoin ETFs. I’d also expect more institutions to rotate into Ethereum ETFs, which haven’t been as popular as the Bitcoin ones up until now. ”

GEOFF KENDRICK, GLOBAL HEAD OF DIGITAL ASSETS RESEARCH, STANDARD CHARTERED, LONDON

“At the end of the day, it’s just a number…but the reality is we’ve been able to get to this level because the industry has become institutionalised this year particularly – and that’s mostly the ETF inflows.

“Roughly 3% of the total supply of bitcoins that will ever exist have been purchased in 2024 by institutional money.”

TONY SYCAMORE, ANALYST, IG, SYDNEY

“After spending the past 12 sessions working off overbought readings and rebuilding energy, the King of Crypto has smashed its way above $100k in trading today.

“This is likely to be the catalyst for the next wave of momentum buying which takes it towards the next stop of $105k, before $120k in 2025.”

KYLE RODDA, SENIOR FINANCIAL MARKET ANALYST, CAPITAL.COM, MELBOURNE

“It’s a massive milestone for the true believers and possibly evidence of the asset’s legitimisation. If we are talking where we go from here, there’s reason to believe this thing could keep going. These end of year melt-ups often see Bitcoin more than double in value.

“Given the reduced regulatory risk, the continued appeal of non-fiat assets because of the perception of US fiscal profligacy, and greater geopolitical risks, there are continued tailwinds that could support prices going higher.”

JUSTIN D’ANETHAN, INDEPENDENT CRYPTO ANALYST, HONG KONG:

“Bitcoin crossing $100,000 is more than just a milestone; it’s a testament to shifting tides in finance, technology, and geopolitics. The figure not that long ago dismissed as fantasy, stands as a reality.

“Institutional adoption is evident, as seen by the increased volume on the CME, ETFs (exchange traded funds), and derivatives markets during U.S. hours. Essentially, funds now need to either get involved or risk standing on the sidelines while more gutsy competitors potentially outperform.”

BOBBY ONG, CO-FOUNDER, COINGECKO, KUALA LUMPUR:

“Bitcoin reaching the $100,000 milestone marks a significant moment for the cryptocurrency market, reflecting its growing maturity and mainstream adoption.

“The psychological importance of $100,000 is also attracting new investors and driving market sentiment. This rally demonstrates Bitcoin’s position as a leading financial innovation, solidifying its reputation as a digital store of value and a hedge against traditional economic uncertainties.

“It also underscores the growing acceptance of cryptocurrencies as a legitimate asset class.”

SHANE OLIVER, CHIEF ECONOMIST & HEAD OF INVESTMENT STRATEGY, AMP, SYDNEY:

“As time goes by it’s proving itself as part of the financial landscape, slotting in more as a store of value as opposed to a regular asset you can value on the basis of things it produces, like shares.

RAY ATTRILL, HEAD OF FX RESEARCH, NAB, SYDNEY:

“It’s the ultimate speculative asset, isn’t it.

“I wasn’t surprised … it was probably the cleanest ‘Trump trade’. Just from a regulatory point of view and the concept of a much more easily traded asset, it’s justified its run up, though it’s now taken on a life of its own.

“The test will be if we do have a big puke in risk sentiment at some point, and we start to see a major stock market correction. Where does crypto sit in that? I don’t know the answer.”

RICHARD TENG, CHIEF EXECUTIVE OFFICER, BINANCE, DUBAI:

“Almost 16 years since its first block was mined in 2009, bitcoin has reached the landmark milestone of $100K per coin, placing the asset at a total market capitalisation of $2.1 trillion.

“This also places bitcoin firmly on the very short list of just seven assets or companies that have achieved more than 2 trillion dollars in market capitalisation, the rest being gold and tech giants NVIDIA, Apple, Microsoft, Alphabet (Google), and Amazon.

“With talks of a U.S. Strategic Bitcoin reserve and more companies adding bitcoin to their corporate treasuries, we are on the precipice of true mainstream global adoption.”

JEAN-BAPTISTE GRAFTIEAUX, CEO, BITSTAMP, LUXEMBOURG:

“Bitcoin reaching $100,000 is a watershed moment, highlighting its resilience after a challenging few years. Despite shifts in the political and regulatory landscape, bitcoin has proven its staying power.

“This milestone reflects the growing maturity of the crypto market, as traditional financial institutions and retail customers increasingly embrace digital assets. Looking ahead, we anticipate broader integration of crypto into retail, professional and institutional holdings and pensions, coupled with a more diverse range of trading services and instruments, mirroring the evolution of traditional finance.”