Bitcoin, the world’s first and most prominent cryptocurrency, experienced an impressive rally in late 2024, with its price surging from $72,000 at the start of November to an all-time high of $99,800. Yet, the psychological milestone of $100,000 has proven to be a challenging barrier, as sell-offs from short-term investors have kept Bitcoin from breaching this level.
The $100,000 Roadblock: A Temporary Setback?
Bitcoin’s inability to cross $100,000 has raised eyebrows, but this isn’t the first time the cryptocurrency has faced such resistance. Similar patterns occurred in 2020 when Bitcoin approached $20,000.
Back then, a slight retrace preceded a dramatic rally to over $64,000 by April 2021. Analysts argue that history could repeat itself, with current resistance setting the stage for a breakout that propels Bitcoin to new highs
Key factors contributing to the recent pullback include a “sell wall” created by traders shorting Bitcoin near the $100,000 mark. This concentrated selling pressure mirrors past cycles, suggesting that surpassing this threshold is more a matter of “when” than “if.”
Is Bitcoin Still a Buy?
The decision to invest in Bitcoin today depends largely on your investment timeline.
Short-Term Prospects: If Bitcoin’s price breaks $100,000, it could trigger a rally similar to previous cycles, potentially reaching $300,000 or more. However, short-term investors face heightened risks, given Bitcoin’s increased volatility and the smaller margins for profit compared to earlier market entries.
Long-Term Potential: For investors with a broader horizon extending into 2028 or beyond, the outlook is more promising. Bitcoin’s four-year halving cycles, decreasing inflation rates, and growing adoption as a store of value make it a compelling asset.
By the next halving in 2028, Bitcoin’s scarcity and utility could possibly drive prices well beyond today’s levels, making sub-$100,000 prices seem like a bargain.
Should You Consider Buying Now?
Scarcity and Institutional Demand: Bitcoin’s halving cycle reduces the creation of new coins, increasing scarcity. Major institutions are incorporating Bitcoin into their portfolios to hedge against inflation and economic uncertainties, amplifying its growth potential.
Mass Adoption: Countries with volatile currencies are increasingly turning to Bitcoin as a store of value. This trend, coupled with rising institutional adoption, suggests a strong long-term trajectory.
Price Volatility: Bitcoin remains volatile, but historically, every correction has been followed by a significant surge. For investors, buying before Bitcoin surpasses $100,000 could offer substantial returns if the upward trend continues.
Take Action Now
While volatility may persist, its growing role as a store of value and medium of exchange makes it a unique asset with unmatched potential.
Partner with Kenson Investments to strategize your cryptocurrency investments.
Whether navigating short-term trades or building a long-term portfolio, our team can support you to make the most of this dynamic market. Secure your financial future while minimizing associated risks today!
Disclaimer: The information provided on this page is for educational and informational purposes only and should not be construed as financial advice. Crypto currency assets involve inherent risks, and past performance is not indicative of future results. Always conduct thorough research and consult with a qualified financial advisor before making investment decisions.
“The crypto currency and digital asset space is an emerging asset class that has not yet been regulated by the SEC and US Federal Government. None of the information provided by Kenson LLC should be considered financial investment advice. Please consult your Registered Financial Advisor for guidance. Kenson LLC does not offer any products regulated by the SEC, including equities, registered securities, ETFs, stocks, bonds, or equivalents.”
