Bitcoin has reached a new milestone by surpassing $100,000 for the first time in its history.
This advance not only represents an all-time high in dollars, but also against goldone of the oldest and most recognized financial assets in the world.
At the moment, 1 bitcoin is equivalent to 39 ounces of gold. The digital currency’s previous all-time high against gold was reached in 2021, as seen in the TradingView chart below.
The comparison between bitcoin and gold is common because both are considered stores of value and alternatives to fiat currencies, especially in times of economic uncertainty, hence bitcoin is called “digital gold”.
When observing the historical price of bitcoin, the meteoric rise of its market capitalization is evident, which now stands at 2 trillion dollars.
In this way, the asset is positioned close to giants such as Google and Amazon, whose value is estimated at 2.2 trillion dollars. However, It is still far from gold, which leads the market with 17 trillion dollars in capitalizationaccording to data from CompaniesMarketCap.
Causes behind the rise of bitcoin
The recent rise of bitcoin has been driven by several key factors that have transformed the market landscape.
The first was the election of Donald Trump as president of the United States on November 5. Since his victory, the coin has increased a 50% in just one monthreaching $100,000, as seen in the following TradingView chart.
The widespread optimism surrounding Trump is due to his promises to generate industry-friendly regulations and tax reforms, among which the elimination of capital gains taxes for cryptocurrencies issued by American companies, as reported by NoticiasVE.
This measure could facilitate the access and use of bitcoin, attracting even more investors to the market.
Bitcoin ETF Performance
Another key factor in bitcoin’s rise has been the success of bitcoin spot ETFs in the United States.
Specifically, ETFs experienced outstanding performance in the last five days, as seen in the following graph.
The main protagonist of these funds is the iShares Bitcoin Trust (IBIT), managed by BlackRock. On December 2, it reached a new milestone by exceeding half a million bitcoins in custody, consolidating itself as the largest bitcoin ETF on the market. Currently, this fund manages $50 billion in assets.
These financial instruments have provided greater accessibility to the crypto asset, favoring its mass adoption and contributing to the increase in its price, since they were issued in January of this year.
Companies continue to adopt bitcoin
The adoption of bitcoin by businesses has also played a crucial role. MicroStrategy, under the leadership of bitcoiner Michael Saylor, announced this week the purchase of 15,400 bitcoinraising your total reserve to 402.100 BTC.
This movement reinforces the company’s strategy of accumulating digital currency as a strategic asset.
Other companies, such as bitcoin miner MARA Holding, have followed suit. MARA launched a proposed private offering of 0% convertible senior notes for $700 million, intended to repurchase existing bonds and acquire more bitcoin.
The trend towards bitcoin accumulation is also reflected in the interest of various companies, both in Asia and the United States. In November, at least 11 companies announced the creation of bitcoin reservesentre ellas Rumble, LQR House, Remixpoint y Genius Group.
What price will bitcoin reach?
With a highly bullish outlook, projections about the future price of bitcoin are diverse, but they all agree on its growth potential.
Michael Saylor, known for his optimism regarding bitcoin, anticipates that the price could rise to $180,000 before falling back to $140,000. According to him, these fluctuations are natural in such a volatile market.
Spanish trader Pablo Gil has based his analysis on halvings, events that reduce bitcoin mining rewards every four years. Gil predicts that the current bullish cycle could extend until 2025, with a target price of $140,000 between April and October of that year.
For his part, market analyst Kennan Mel believes that the future of bitcoin depends on the Bitcoin Strategic Reserve promised by Trump.
If this measure comes to fruition, Mel foresees that the price will reach between 140,000 and 200,000 dollars in the short term. In the long term, he estimates that bitcoin could reach $400,000 between 2028 and 2029, provided the policies are successfully implemented.
Despite the optimism, Mel warns that a delay in reserve creation could lead to a pullback in price, possibly even $70,000due to unmet expectations.
Bitcoin continues to establish itself as a financial asset of global importance, challenging gold and approaching the technological giants in terms of capitalization. His recent record of $100,000 and its valuation in gold are indicators of the growing confidence in the crypto asset.