Can Bitcoin surpass the $100K mark in 2024?

Over the past week, Bitcoin has been breaking multiple All-Time Highs, following Trump’s victory in the US Presidential Elections. From the much-anticipated $75,000 mark on November 6th to the current $87,000 today. This rally, combined with the increasing investor participation indicates that we have entered a strong bull run increasing Bitcoin’s market cap to $1.7 trillion for the first time since its launch.

Breaking one ATH after the other, Bitcoin has gained enough momentum to break the psychological mark of $100,000 within the year end. BTC is just $13,000 away from the $100K mark.

Steady ETF inflows:

Bitcoin Spot ETFs saw a consistent increase since the elections with net inflows standing at nearly $2 billion in just a week. The growing acceptance of spot ETFs simplify the investment process for institutional players and traditional investors, who can now easily gain exposure to Bitcoin without directly holding the asset. This steady inflow into ETFs is one of the major driving factors for the price action in BTC’s price and over the next few weeks, more funds from institutions will move to ETFs contributing to the next leg of rally to $100,000.

Increasing Retail Participation:

Historically, bull runs bring a surge in retail investor activity, and recent data shows a similar trend taking shape. Google Trends data reveals a noticeable uptick in crypto-related searches, indicating a gradual return of retail investors to the market. While this recent spike shows renewed interest, the search volume hasn’t yet reached the peaks seen in past bull markets, which could mean there’s still plenty of room for the rally to continue. Notably, retail involvement in this cycle is stronger than ever, with addresses holding at least 0.001 BTC now making up about 55% of all addresses—signaling growing adoption among everyday investors.

Strong Technical Momentum:

Bitcoin’s rally towards $100K is also influenced by its technical momentum. In recent days, Bitcoin has set multiple new all-time highs, highlighting its technical strength. The BTC Fear & Greed Index is now at “Extreme Greed,” indicating high market confidence and buying enthusiasm. Bollinger Bands (20-period SMA with a 2-standard deviation range) show that Bitcoin is consistently trading near the upper band, a common indicator of ongoing bullish pressure. Bitcoin’s trading volume has surged alongside its price, indicating solid participation from both retail and institutional investors. This momentum is further strengthened by a spike in long positions on Bitcoin futures, which have reached $2.8 billion at a price level of $90,000. This strong buying interest across both spot and futures markets reflects a high level of confidence in Bitcoin’s upward trend, fueling BTC’s continued rally.

Currently, BTC has strong support at $75,600. If BTC maintains the momentum, it could likely have another jump to $90K, making its way to the $100K mark by the end of the year.

Adoption Ready Infrastructure:

During the past bull runs, retail investors had limited options to start investing in crypto. Over the past few years, with increasing interest and evolving tech, retail investors have all the tools handy to enter the crypto markets. With the confidence given by Trump’s victory, more products and services will come into the market making investing much simpler and profitable further bringing more investors, creating increased demand for the capped token driving up BTC’s price.

What Should Investors Do Now?

While Bitcoin shows strong potential for further gains, it’s essential to maintain a clear investment strategy to reduce the risks involved in the asset class. Do your own research before investing in a token. Keep yourself updated on news and other updates. For eg; while several indicators suggest Bitcoin could reach the $100K mark by year-end, geopolitical uncertainties—such as potential escalations in the Middle East—could still shift market directions. Building a margin of safety into your investments is key to mitigating unexpected market reactions and preserving stability amidst volatility.

(The author is Co-founder of Mudrex)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)