Bitcoin, the world’s largest cryptocurrency, hit a record high of $94,378 on Wednesday, further bolstering optimism of reaching the much-anticipated $100,000 milestone. The surge follows reports of Donald Trump’s social media company negotiating with crypto trading firm Bakkt, fueling hopes of a crypto-friendly regulatory environment under the incoming administration.
Bitcoin’s value has more than doubled this year, with a 35% rise since the U.S. Presidential election on November 5. Analysts suggest the ongoing rally is supported by valuation metrics, such as the Market Value to Realized Value (MVRV) ratio, which indicate that Bitcoin remains undervalued.
Insights and Projections
Crypto Quant’s report reinforces this view, stating:
“Bitcoin is still not overvalued.”
Technical analysts like Manish Chhetri of FXStreet highlight the currency’s bullish momentum, with no resistance levels in sight and significant buyer activity driving further growth.
The cyclical nature of Bitcoin is also under scrutiny. Ryan Lee, Chief Analyst at Bitget Research, notes:
“Bitcoin’s roughly four-year cycle, often tied to halving events, points to a peak around late 2025.”
Lee also mentions the pi cycle top indicator, predicting a potential new all-time high between late 2024 and mid-2025, with some models forecasting prices as high as $150,000.
ETF Launch Bolsters Institutional Interest
The launch of spot Bitcoin exchange-traded fund (ETF) options on Nasdaq has been pivotal. Shivam Thakral, CEO of BuyUcoin, explained the significance of this milestone:
“This new trading option enhances market sophistication, attracting institutional capital and supporting ongoing price increases.”
Market Outlook
The global cryptocurrency market capitalization has surpassed $3 trillion, fueled by post-election optimism. Vijay Valecha, Chief Investment Officer at Century Financial, emphasized the broader excitement, saying:
“Traders anticipate a supportive regulatory regime, breathing new life into Bitcoin and other digital assets.”
Bitcoin’s rally has cemented its position as a cornerstone of the digital financial landscape, with market sentiment remaining highly optimistic about its trajectory toward six-figure pricing.
