In an unprecedented turn of events within the financial landscape, December 5th, 2023, marked a significant milestone for the world of cryptocurrency, as Bitcoin crossed the remarkable threshold of $100,000 for the very first timeBy 10 AM on that fateful day, Bitcoin's value surged past the $100,000 mark, specifically reaching $102,603 by 12:30 PM, indicating an impressive 6.88% increase over the previous 24 hoursThe ascent of Bitcoin this year is noteworthy, showing a staggering cumulative increase of around 143.83%. This recent surge has displayed the characteristics of what analysts are referring to as a "bull run," propelling Bitcoin's price from a still substantial $68,000 to unprecedented heights within a single month.

Several factors have contributed to this phenomenal riseA pivotal element has been the emergence of promising regulatory frameworks and commitments aimed at fostering the growth of cryptocurrencies

This has been perceived as a direct catalyst for Bitcoin's leap over the $100,000 barrier during the monthAdditionally, a surge in participation from major hedge funds, pension funds, and institutional investors has fueled Bitcoin's ascentThe growing appeal of Bitcoin spot ETFs has led to a sustained influx of capital, further energizing the current cycle of price escalation in Bitcoin.

Breaking New Ground: Bitcoin Hits $100,000

On December 5th, Bitcoin demonstrated its resilience as it effortlessly crossed the $100,000 threshold, rising steadily from $97,000, then $98,000, and finally surpassing $99,000 en route to this milestoneAnalysts have closely monitored these developments, noting that as of 12:30 PM on the same day, the cryptocurrency was trading at $102,603, reflecting a remarkable 6.88% increase within just 24 hours.

This year has been significant for Bitcoin, particularly on March 8th, when it first touched the psychological barrier of $70,000. By March 11th, Bitcoin's market capitalization had ascended to an astonishing $1.398 trillion, exceeding that of silver, which was valued at $1.379 trillion at the time, thereby securing its position as the eighth largest asset globally

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The momentum continued to build, with Bitcoin reaching an all-time high of $72,890 on March 12th, translating to a more than 5% daily increaseThe price trajectory of Bitcoin has seen various highs, especially as it peaked at $73,700 within the same month.

Recently, particularly over the past month, Bitcoin has seen remarkable volatility, categorized as a "bull market." Beginning on November 6th, a substantial price increase was noted, culminating in one day where Bitcoin's price approached $75,000, marking over a 10% gainFollowing this trend, on November 7th, Bitcoin set a new historic high at $75,600, boosting the global cryptocurrency market capitalization to exceed $2.6 trillion, with Bitcoin’s own market cap reaching $1.495 trillion prominently.

November bore witness to further upward pressure on Bitcoin's price

On November 9th, the cryptocurrency soared to $77,000, setting another record, with a 1.5% increase during that daySubsequently, on November 10th, Bitcoin once again shattered records, crossing the $80,000 threshold for the first time, showcasing a daily appreciation of 4%. By November 11th, the cryptocurrency continued its bullish ascent, hitting $81,792. It has been observed that from November 4th to December 5th, Bitcoin skyrocketed $34,000, leading to a market capitalization exceeding $2 trillion and crowning Bitcoin as the seventh largest global asset.

As mentioned earlier, the dramatic volatility of prices has had significant ramifications for tradersAccording to data from Glassnode, over the past 24 hours, more than 198,000 traders were liquidated with total liquidation values reaching around $580 millionAmongst these, long positions accounted for approximately $330 million, while short positions accounted for about $250 million, an indication of the market's volatility

The most significant single liquidation occurred in Bybit with a value nearing $8.91 million.

In terms of regulatory landscape, seasoned financial regulatory expert Paul Atkins has taken the role of chairperson at the SECAtkins has previously questioned the agency's stringent measures against cryptocurrency firms, suggesting a possible shift towards a more amiable stance towards the industry, which aligns with the optimistic commitments currently being observed.

Analyzing from a technical perspective, Zhao Wei, a senior researcher at OKX Research Institute, emphasized that since surpassing the $60,000 mark, Bitcoin has entered a phase of accelerated growthVarious technical indicators show a predominance of bullish momentumHowever, he noted that fluctuations between $85,000 and $100,000 indicate a growing divergence among market participants regarding the valuation of Bitcoin at these elevated levels

This oscillatory phenomenon, he stated, is a natural market adjustment that can help mitigate the pressure created by rapid price increases, establishing a foundation for future growth.

Co-chairman of the Blockchain Special Committee of the China Communication Industry Association, Yu Jianing, highlighted that Bitcoin’s current growth can be attributed to a multitude of concurrent factorsThe heightening uncertainty within global financial markets has bolstered demand for BitcoinThe rollout of Bitcoin spot ETFs has served as a crucial enabling factor, further strengthened by national-level policy support and regulatory compliance, which significantly enhances Bitcoin’s price appreciationThis situation is underscored by the growing acceptance of digital assets across several nations including Russia, indicating Bitcoin’s gradual acceptance into mainstream financial systems

As Bitcoin managed to break through several key support levels technically, it generated significant upward momentum attracting more ‘buying on the rise’ capital.

Future Price Trends

With Bitcoin now achieving a historic breakthrough over the $100,000 threshold, many analysts have expressed bullish predictions for the market, with some forecasting a price target of $200,000. Mark Palmer, a senior analyst at a New York investment bank, posits that Bitcoin could soar to an incredible $225,000 by the end of 2026, implying an upside potential of approximately 130% from current levels.

In a similar vein, Jeffrey Ding, the chief analyst at HashKey Group, expressed the notion that Bitcoin crossing $100,000 indicates substantial potential for further price appreciation

Ding referred to this moment as a watershed in Bitcoin’s market journey, pointing out that it signifies not only a recognition of value by the market but also the catalyzing beginnings of a new phase in cryptocurrencyThis breakthrough emphasizes Bitcoin's status as "digital gold" and portrays its attributes as a safe-haven asset, asserting that Bitcoin is establishing itself as a crucial component in global investors' asset portfolios.

Jay Jacobs, head of thematic and active ETFs at BlackRock, remarked that a diverse array of investors across varying wealth tiers are increasingly adopting Bitcoin as a hedge against geopolitical risks and inflation-induced currency devaluationAs ETFs provide an accessible format for investors to gauge Bitcoin price trends, it is merely a matter of time before mainstream interest in cryptocurrencies reaches a crescendo

Notably, since its launch in January, BlackRock’s IBIT Bitcoin spot ETF's asset value has escalated to over $45 billion, with an impressive growth of $4.1 billion within the last month alone.

Gao Chengshi, an executive committee member of the Blockchain Special Committee at the Chinese Computer Society, remarked that the $100,000 price level represents a significant psychological barrierIt is anticipated that following this breakthrough, there may be frequent price oscillations and potential for multiple correctionsHowever, if the preliminary commitments are realized, Bitcoin’s long-term prospects may be robustFor long-term investors, it might be prudent to consider reasonable allocations, while those engaged in short-term trading must vigilantly manage their positions and risks.

Yu Jianing further indicated that after achieving certain market expectations, Bitcoin’s price may undergo substantial fluctuations

This might result from long-term holders taking profits, leading to temporary imbalances in supply and demand which could trigger price adjustmentsFurthermore, leveraged positions have the capability to significantly amplify market volatility, potentially resulting in cascading liquidations that exacerbate price fluctuations.

Zhao Wei stated that the current growth trajectory of Bitcoin is predominantly anchored on anticipatory sentiments towards future policies, albeit the extent to which these expectations will materialize remains to be seenHe foresees that Bitcoin's long-term trajectory will likely retain its characteristic of extreme volatility, continually hinging on developmental elements including technological innovations, market demands, and regulatory environmentsThe swift ascent in Bitcoin's price often accompanies the risk of corrections, urging investors to stay alert and avoid haphazard following of trends.

Additionally, Zhao Wei pointed out that as a highly volatile asset, Bitcoin embodies qualities such as serving as a hedge against risks and counteracting inflation threats, while simultaneously subject to uncertainties surrounding regulatory measures and technological transformations