Bitcoin price surges past $100,000 to hit record high
Bitcoin (BTC-USD) reached an all-time high, crossing the $100,000 (£78,692) mark for the first time late Wednesday night. The digital currency peaked at $103,000 before settling at $102,900 at the time of this writing, based on data from CoinGecko.
This represents a 6% uptick from Thursday, nearly a 50% increase over the past month, and a substantial 67% surge since early October, when Bitcoin was valued at approximately $60,000.
An increase in interest from individual investors has been a significant factor in pushing bitcoin's price past $100,000. Recent data from CryptoQuant indicates that retail demand has surged to its highest point since 2020 over the last month.
Explore further: Real-time cryptocurrency prices
According to CryptoQuant analysts, as long-term investors start cashing in on their gains, a rise in retail participation might help maintain short-term momentum. However, they warned that a surge in retail involvement typically aligns with market peaks, so it's essential to keep an eye on the interaction between retail and institutional investments.
Although the rally has generated a lot of enthusiasm, some experts have cautioned about possible risks in the future. Historical trends indicate that quick surges in asset values are frequently followed by significant downturns.
"Surpassing the $100,000 resistance level puts bitcoin into a phase of price exploration, entering a new realm that might generate even more enthusiasm in the market. Yet, with the Fear and Greed Index currently over 80, indicating a situation of extreme greed, investors should be careful about the likelihood of heightened volatility and the possibility of profit-taking," commented BRN analyst Valentin Fournier.
Explore further: 10 cryptocurrency tokens gaining value along with Bitcoin.
Fournier mentioned that the money flowing into spot exchange-traded funds (ETFs) for bitcoin and ethereum (ETH-USD) from institutions is still strong, with recent investments of $557 million and $168 million, respectively. This highlights ongoing interest from major investors.
Institutional support remains a key factor behind the surge in bitcoin's value. In November, MicroStrategy (MSTR), the largest publicly traded company holding bitcoin, revealed that it had acquired another 15,400 bitcoins for $1.5 billion. This purchase increases its overall collection to 402,100 bitcoins, now worth more than $40 billion at today's market rates.
The recent spike in the market for spot Bitcoin exchange-traded funds (ETFs) in the US has also played a role in the surge. According to Glassnode, November saw an unprecedented level of ETF investments, amounting to $6.1 billion. A significant portion of this, $5.4 billion, came from BlackRock’s iShares Bitcoin Trust, indicating a strong demand among investors for regulated Bitcoin options.
The rally has taken place amidst growing worries about inflation and discussions surrounding more defined regulations for cryptocurrencies as Donald Trump's inauguration as president of the United States approaches on January 20.
