This article is available in Spanish.
Bitcoin has reached a major milestone, trading at six-figure levels for the first time since its inception. On Thursday, the cryptocurrency hit a new all-time high of $103,679, marking a year-to-date increase of more than 140% and pushing its market cap above $2 trillion.
This achievement has reignited enthusiasm within the investment community, solidifying Bitcoin’s position as a major player in the global financial market.
Despite this impressive performance, Bitcoin has undergone a slight retracement. At the time of writing, the stock is trading at $101,573, still up 6% in the last 24 hours.
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What comes next?
Market information platform IntoTheBlock weighed on this development and provides insight into Bitcoin’s potential trajectory. The platform’s analysts emphasized that Bitcoin’s limited supply and growing interest from institutional investors and even countries create significant upside potential.
Bitcoin Breaks $100,000!
An important milestone, but what now?
With limited supply and substantial interest from major investors (and even countries), the potential seems limitless. However, we recommend looking at previous cycles to evaluate potential.
This graph shows… pic.twitter.com/5b60oTRJy3
— IntoTheBlock (@intotheblock) December 5, 2024
However, previous cycles indicate 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 a more conservative growth range of 100%-200% from the halving price, suggesting a peak between $130,000 and $190,000. IntoTheBlock analysts specifically wrote:
So while some may demand a million dollars per Bitcoin, a more reasonable expectation would be: 100%-200% return on price halvingplacing the top between 130k and 190k.
However, the analysts also pointed out: “That is, unless Bitcoin becomes a global reserve, of course.”
Analyzing market trends and investor behavior
Meanwhile, a CryptoQuant analyst provided this additional insights in Bitcoin’s recent performance and market behavior. According to the analyst, Bitcoin purchases continue to rise, with the Coinbase Premium Index reflecting strong buying activity in the United States.
The index, which tracks the price difference between Coinbase Pro and Binance, shows continued positive data, indicating active participation from US investors.
The analyst emphasized the importance of monitoring this index in addition to broader trend analysis. For example, during periods classified as “fear phases,” when buyers pull back and bearish momentum fails to materialize, the market often creates opportunities for strategic entry points.
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If the index remains in the positive zone, it indicates a continuation of the uptrend, making pullbacks an optimal time for positioning. Until Bitcoin reaches what the analyst describes as the “redundant phase,” buy positions should be held while profitable positions should be secured to limit risk.
Featured image created with DALL-E, Chart from TradingView
