Bitcoin Will Reach $100k Soon: Industry Experts Explain Why and The Impact On Investors

(Crypto News)-27/11/2024

Industry experts are confident that Bitcoin (BTC) will soon reach the much-awaited $100,000 all-time high (ATH) mark.

While this figure seemed like a big target a few months ago, BTC surpassing $90,000 on November 13 demonstrates that the asset is on its way to $100k. A new ATH for BTC was also recorded on November 19, as the asset climbed to $94,000.

Current Factors Driving Bitcoin To $100k

Daryll Netscher, Founder of Tren Finance, told Cryptonews that several interconnected factors are driving Bitcoin’s approach to the $100,000 milestone.

“First, we’re seeing unprecedented institutional adoption amid significant political shifts. Following Donald Trump’s victory in the recent U.S. presidential election, market sentiment has strengthened due to expectations of a more crypto-friendly regulatory environment,” Netscher said. “The approval and launch of spot Bitcoin exchange-traded funds (ETFs) has also created a more accessible on-ramp for traditional investors.”

Netscher believes the current institutional framework will provide a stronger foundation for Bitcoin’s growth than previous price rallies.

He further pointed out that the broader macroeconomic environment shows favorable conditions for Bitcoin investment.

“The Bitcoin halving event in 2024, which historically precedes periods of price appreciation, is coinciding with increasing institutional interest, creating a unique combination of supply reduction and demand growth,” Netscher said.

This is already being demonstrated, as the current BTC bull run has led to Bitcoin backers like MicroStrategy (MSTR) and Metaplanet announcing new BTC purchases this week. Notably, MicroStrategy now holds 1.5% of the asset’s total supply.

Bitcoin Is Trending Up, Volatility Declines

While the $100k BTC price will be an important milestone, Tim Enneking, Founder and Principal of Digital Capital Management, told Cryptonews that the price of Bitcoin is trending up regardless of current factors.

“Bitcoin is increasing due to deflation, inflation in fiat currencies, fear of missing out, and the fact that there is no entity controlling the asset,” Enneking said.

Enneking added that the growing dependency on the Internet is a reason for Bitcoin’s increasing price. He believes this is the case due to the ease of transferability associated with cryptocurrencies like Bitcoin.

“In order for something to qualify as money, it must now be easily transferable. Crypto is ultimately transferable,” he said. “And while I believe that nothing in crypto space is close to being a currency, the idea of a transferable form of significant wealth is a big idea.”

Enneking pointed out that it is fascinating to see what President-Elect Trump thinks of establishing a Bitcoin strategic reserve under his term.

Enneking also noted that Bitcoin’s volatility has been declining. He believes this is due to a changing crypto investor profile that occurs every 18 months.

“In the last 18 months, institutions came in and spot Bitcoin ETFs were established,” he said. “Every 18 months, there is a new investor profile, which decreases Bitcoin’s volatility.”

What $100k BTC Means For Institutional and Retail Adoption

Bitcoin reaching $100,000 will impact both institutional and retail investors. However, Enneking pointed out that institutions will be much less prone to reacting impulsively to the psychological milestone.

“For institutional investors, this is just another number, but the psychological impact of the $100k Bitcoin price will have a major effect on retail investors. Fear of missing out will also become even greater when Bitcoin hits $100k,” Enneking explained.

Netscher added that this price milestone may trigger a transformative shift in how cryptocurrencies are integrated into the broader financial system.

“On the institutional front, this achievement would validate the thesis of early institutional adopters while creating a new baseline for portfolio allocations,” he said. “We’re already seeing major financial institutions maintaining small cryptocurrency positions, but this level of market maturity would likely catalyze a more systematic approach to digital asset allocation.”

Netscher believes that the resulting market capitalization would make Bitcoin too important for institutional investors to ignore.

This could potentially lead to standardized cryptocurrency allocation models similar to those used for gold and other alternative assets.

Echoing Enneking, Netscher added that the retail landscape would likely experience an even more dramatic transformation.

“This milestone would generate unprecedented media attention and public interest, but more importantly, it would validate the ‘digital gold’ narrative for a broader audience,” Netscher explained. “The heightened visibility would likely accelerate the development of user-friendly financial products and services, making cryptocurrency more accessible to average investors.”

While this is already being demonstrated with the emergence of Bitcoin ETFs, Netscher expects to see Bitcoin-based products becoming standard offerings across traditional banking platforms.

Bitcoin Likely To Reach $100k and Beyond

While Bitcoin’s price continues to hover around the $93k mark, Netscher believes the current market structure suggests that the eventual $100k milestone could serve as a stepping stone rather than a ceiling.

“The combination of institutional adoption through ETFs, professional market makers, and longer-term investment strategies provides a more sustainable foundation for price discovery than in previous cycles, indicating potential for continued momentum,” he said.

Enneking predicts Bitcoin will surpass $100k and reach at least $120k by the end of next year.

“Historically, there have always been 4-year cycle fits. After the BTC halving event, it’s always about a 6-month delay before the BTC bull market starts. This typically lasts about a year and is pretty stable,” he said.

Netscher further explained that the confluence of the 2024 halving event’s supply impact, coupled with the maturing institutional infrastructure, creates uniquely favorable conditions for sustained Bitcoin growth.

However, he mentioned that while the path beyond the $100k Bitcoin level may be supported by stronger fundamentals, it will likely include periods of consolidation and corrections.

“But, these will be potentially less severe than in previous cycles due to the more sophisticated market participation we’re witnessing,” Netscher said.