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ToggleBit coin challenges the $100,000 mark but fails, but the future market remains bright
Bit coin reached a high of $99,468 on November 23, with the greed index rising to 97, but ultimately failed to break through the $100,000 mark and fell back to $91,290. Currently, the Bit coin price is consolidating in the range of $95,000 to $97,000. Although there is short-term volatility, experts generally believe that Bit coin is in the middle of a bull market, and its upside potential is still highly anticipated by the market.
Global policy dynamics: the trend of nationalization of Bit coin reserves
This year, the United States approved BTC and ETH spot ETFs, leading a new global direction in crypto policy. After being re-elected, Trump actively recruited crypto-friendly government officials to implement more friendly policies. In addition to the United States proposing to include Bit coin as a national reserve asset, Canada has also recently seen some movement in this direction.
According to the latest report from CointelegraphTele, Ken Sim, the mayor of Vancouver, Canada, announced at the city council meeting on November 26 that he plans to submit a proposal to add Bit coin to the city's balance sheet, titled "Protecting the City's Purchasing Power Through Financial Diversification: Becoming a Bit coin-Friendly City." He hopes to use the diversified financial attributes of Bit coin to hedge against inflation, reduce dependence on the US dollar, and attract technology innovation capital. This marks the trend of Bit coin reserve policies at the national level in Canada, following some US state governments.
The global trend of using Bit coin as a strategic reserve asset is gradually emerging, which not only enhances its financial status, but also signals changes in the flow of market capital.
Coin price and market capitalization
In 2024, the overall performance of the crypto market is strong:
- Bit coin's average annual compound growth rate (CAGR) reaches 154%, firmly at the center of the financial market.
- Ether's price grew by more than 50% due to the development of decentralized applications (dApps), continuing to attract businesses and developers.
- Coins such as XRP, Solana and Cardano have recently seen double-digit price surges, helping to push the total market capitalization to over $3.5 trillion.
User numbers and institutional participation: a solid market foundation
In a report released in May this year, Singapore-based crypto payment company Triple-A stated that the number of global crypto holders will reach 562 million by 2024, accounting for 6.8% of the global population, with an annual growth rate of 34%. A Chainalysis report also shows a significant increase in consumer acceptance of virtual assets. Particularly in the Asia-Pacific and Latin American regions, the popularization of blockchain payments and Web3 applications has driven user growth.
In addition to retail investors, institutional participation has also been accelerating this year in response to ETF approvals. According to data from Bitcoin Treasuries, there are now 93 institutional entities (countries, companies, ETFs, etc.) that have publicly disclosed Bit coin holdings, with ETFs accounting for 5.9%, or about 1.25 million Bit coins, and national reserves holding 529,000 Bit coins. HOYA BIT founder Peng Yunxian predicts that as more companies and governments include Bit coin in their asset portfolios, institutions will gradually replace retail investors as the dominant market force.
Market outlook: short-term and long-term outlook is optimistic
Although it failed to break through the $100,000 mark, with continued support from major countries and increased institutional adoption, Bit coin is still expected to challenge this target by the end of the year.
- Crypto data analysis firm CryptoQuant also says this is a temporary correction, and based on the market peak indicators of previous bull markets, there is still a lot of upside potential, and Bit coin is expected to reach at least $147,000 before reaching the upper limit of this market cycle.
- Analysts at US investment management firm ARK Invest (ARK Investment) say the January 1 target price is between $104,000 and $124,000, and Bit coin is currently in the middle of a bull market, and in the best case scenario, it could reach $1.5 million by 2030.
- Renowned Wall Street investment bank Bernstein analysts predict the target price could reach $200,000 by the end of 2025.
- Galaxy Digital CEO Mike Novogratz predicts it could reach $500,000 by 2025.
HOYA BIT founder Peng Yunxian said:
The open attitude of global policies and the active inflow of institutional capital are laying a more solid foundation for the crypto market. Although short-term volatility still exists, the long-term potential of the market is undoubtedly promising.
The market is welcoming a new round of policy dividends and institutional participation enthusiasm, and Bit coin's breakthrough is just a matter of time, and the next step of the crypto market is worth looking forward to.
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