Author: Yohan Yun, CoinTelegraph; Compiled by Bai Shui, Jinse Finance
Bitcoin was once seen as a fringe asset for cypherpunks and tech enthusiasts, but it has continued to climb, from $1 in 2011 to $1,000 in 2013, and now has reached the coveted six-figure mark in 2024.
The rise of Bitcoin shows that it has evolved from a curious experiment to a legitimate global financial asset.
But the journey to $100,000 has not been a smooth one. Cryptocurrencies have been declared "dead" countless times, but each time they have risen from the grave.
Mikko Ohtamaa, co-founder of the algorithmic trading firm Trading Strategy, points out: "The past 10 years have been pure speculation. Now is the time to move from speculation to real-world utility."
The recent bull run stands out due to some key differences.
Today, Bitcoin is not just another speculative asset - it is widely seen as a safe haven, an inflation hedge, and a recognized asset class with a growing institutional base.
Source: Cynthia Lummis
Spot exchange-traded funds (ETFs) in major economies like the US and Hong Kong have made cryptocurrencies more accessible than ever, and the recent election of a crypto-friendly presidential candidate, Donald Trump, in the US has rolled out the red carpet for the crypto industry.
Trump's campaign promises include replacing the chairman of the US Securities and Exchange Commission, Gary Gensler, who has been seen as an opponent in the crypto space due to his strict enforcement approach.
Investors hope this change will reduce regulatory hurdles and create a more favorable environment for crypto assets. Gensler's tenure has been marked by "enforcement-focused regulation" and has been widely criticized by the industry for lack of legal clarity.
The Journey to $100,000 Begins with a Series of Disasters
The path to Bitcoin reaching $100,000 has not been without its challenges. This road has been filled with violent price fluctuations, market crashes, and even doubts about its very existence at times.
One of Bitcoin's most notable near-death experiences was when it first reached $1,000 in 2013, only to crash to $200 in 2014. During this period, the collapse of the world's largest Bitcoin exchange, Mt. Gox, cast a shadow over the market, and the issue of its creditors' payments is still being followed a decade later.
In December 2017, driven by the initial coin offering (ICO) frenzy, Bitcoin hit a new high of nearly $20,000. However, regulators soon stepped in, with the US viewing ICOs as unregistered securities offerings and China outright banning them. By December 2018, Bitcoin's trading price had fallen to $3,200.
Bitcoin's next major resurgence occurred in 2021, driven by institutional support and high-profile companies like Elon Musk's Tesla, with Bitcoin prices reaching $63,000.
Source: Arkham Intelligence
But regulatory pressure once again dampened the enthusiasm: China's crackdown on Bitcoin mining led to a significant drop in Bitcoin prices to $29,000. After reaching a new high of $69,000 in November 2022, Bitcoin fell to a low of $15,000 due to turmoil in the crypto industry, including the FTX collapse, the bankruptcy of Three Arrows Capital, and the Terra-Luna stablecoin crisis.
Now, in 2024, Bitcoin has rebounded. The US Securities and Exchange Commission (SEC) approved a spot Bitcoin ETF in January, opening the door to wider participation, and Trump's election in November has provided a tailwind for this rally.
Hong Kong market analyst Justin d'Anethan points out, "What's driving us up now is the accessibility of ETFs, corporate buying, and the continued growing allocation from global institutions." "The de-dollarization of BRICS economies has also added an extra layer of mystique, as the world reassesses the role of traditional reserve currencies, with Bitcoin positioned as a potential hedge."
What Does $100,000 Mean for Bitcoin?
For Bitcoin bulls, $100,000 is more than just a number. It is a psychological milestone that validates the years of "laser eyes" fervor - a social media trend where Bitcoin supporters wear laser eye profile pictures to show their confidence in this milestone.
But as d'Anethan explains, $100,000 is not the ultimate destination.
"Over the past year, the Bitcoin rally has been driven primarily by experienced participants: we've seen corporate treasuries (mainly MicroStrategy), the emergence of ETFs, and even pension funds starting to allocate to BTC, all without much fanfare," he says.
"Retail investors have not yet flooded in, and when that excitement comes, it won't stop at $100,000."
Trump's campaign team has also floated the idea of establishing a strategic Bitcoin reserve, which has drawn mixed reactions.
Source: Ed Krassenstein/Impure Hoonter
Some see this as a step towards centralization, while others, like Quary, the founder of the Bitcoin market Magisat, believe it is neutral to Bitcoin's decentralization ethos.
"Who holds Bitcoin actually doesn't make any difference to the network," Quary points out.
"Hopefully, the US and the BRICS countries (Brazil, Russia, India, and China) will have similar interest in Bitcoin and hold large amounts of it. In my view, this would be the best case - a fair decentralized network where all powers can participate."
Where Will Bitcoin Go Next?
Reaching $100,000 is a symbolic achievement, but for many, it marks the beginning of a larger narrative for Bitcoin.
In the short term, with the Federal Reserve expected to continue pivoting towards rate cuts, Bitcoin may find itself in a macro environment favorable to risk assets.
"As long as we don't face a 2022-style mass liquidation or unforeseen black swan event, the path of least resistance seems to be upwards," d'Anethan says.
However, as history has shown, Bitcoin's trajectory is rarely a smooth upward line. Even in a positive momentum, corrections are possible.
In a world of shifting economic power and evolving monetary policies, Bitcoin has transitioned from a niche asset to a viable financial alternative.
Whether as an inflation hedge, a safe haven, or a symbol of financial sovereignty, Bitcoin's ascent to $100,000 sends a clear signal: the era of cryptocurrencies is upon us, with immense volatility, complexity, and transformative potential.
