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Bitcoin has reached a major milestone, trading at six levels for the first time since its inception. On Thursday, the cryptocurrency hit an all-time high of $103,679, marking a year-to-date increase of more than 140% and pushing its market capitalization to over $2 trillion.
This success has renewed interest among the investment community, strengthening Bitcoin’s position as a key player in the global financial market.
Despite this impressive performance, Bitcoin has experienced little recovery. At the time of writing, it is trading at $101,573, up 6% in the last 24 hours.
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What’s Next?
Market intelligence platform IntoTheBlock measured in half on this development, which provides insight into Bitcoin’s potential trajectory. Analysts of the field highlight that the limited supply of Bitcoin and the growing interest from institutional investors and even countries are creating high potential.
Bitcoin breaks $100.000!
A big milestone, but what’s next?
With limited supply and huge interest from big investors (even countries), the potential seems limitless. However, we recommend that you check the previous cycles to check the strength.
This chart shows… pic.twitter.com/5b60oTRJy3
– IntoTheBlock (@intotheblock) December 5, 2024
However, past cycles suggest diminishing returns, with historical post-halving cycles showing returns of 7,900% in 2013, 2,560% in 2017, and 594% in 2021.
Based on these trends, IntoTheBlock expects sequential growth of more than 100%-200% from the halving prices, suggesting a peak between $130,000 and $190,000. IntoTheBlock commentators in particular wrote:
So while some value a million dollars per Bitcoin, a reasonable expectation would be a 100%-200% returns on half moneywhich tops out at between 130k and 190k.
However, analysts also pointed out: “That is, unless Bitcoin becomes the world’s saving asset.”
Analyzing Market Trends and Investor Behavior
Meanwhile, the CryptoQuant analyst provided more insight into Bitcoin’s recent performance and market behavior. According to the analyst, Bitcoin purchases continue to rise, with the Coinbase Premium Index showing strong buying activity in the United States.
The index, which tracks the difference in prices between Coinbase Pro and Binance, shows continuous positive data, showing active participation by US investors.
The analyst emphasized the importance of monitoring this indicator and a comprehensive trend analysis. For example, during periods described as “fear phases,” where buyers retreat and bearish momentum fails to materialize, the market often creates opportunities for strategic entry points.
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If the indicator stays in the vertical position, it indicates the continuation of the uptrend, making pullbacks the right time to stop. Until Bitcoin reaches what the analyst describes as an “excess phase,” long positions should be held, while profitable positions should be hedged to reduce risk.
The featured image was created with DALL-E, a Chart from TradingView