The Rise of Bitcoin & Its Effect on the Crypto World

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As a seasoned researcher with over two decades of experience under my belt, I can confidently say that the latest milestone Bitcoin is about to reach is anything but surprising. The digital coin’s journey has been a rollercoaster ride, and reaching $100,000 per coin feels like the grand finale of a thrilling blockchain-based movie.

Is it truly unexpected that cryptocurrencies worldwide are about to hit another significant milestone? Recently, Bitcoin came remarkably close to achieving a value of $100,000 per unit – on the 25th of November, 2024, its digital value surpassed $98,000.

At present, this cryptocurrency is experiencing a dip, hovering around $92,000 as we speak. Yet, experts predict that it might surpass this level in the coming days. Bitcoin, the trailblazer of digital currencies, is widely employed today for diverse purposes such as making purchases at physical stores and even playing games like spinning slot machines or rolling dice in top-tier crypto casinos.

Why does this Bitcoin step carry such significance that it’s causing a stir in the crypto sphere? And if Bitcoin reaches $100,000, what impact might it have on other digital currencies? Let’s delve into it!

The Math Behind Bitcoin

In the realm of cryptocurrencies, there’s a fact universally acknowledged – Bitcoin is capped at 21 million units! Regardless of your desires for alteration, the mathematics behind this limit is inflexible. What often escapes the notice of crypto traders is that as the price climbs higher, it becomes increasingly challenging to diminish the supply of Bitcoin.

In simpler terms, due to its high cost, buying a single Bitcoin is out of reach for many individuals. However, the opportunity to acquire smaller fractions of it exists, making it more accessible over time and encouraging continued investment in Bitcoins.

Why Is Bitcoin Rising Now?

Bitcoin, created back in 2008 (approximately 16 years ago), only recently reached a significant milestone. One might wonder, what took this digital currency so long to achieve this threshold, and why is it happening now? To shed some light on the subject, let’s explore several possible reasons.

Lenient Crypto Policies

An increasing number of nations are becoming more accommodating towards cryptocurrencies. These digital assets can now be utilized for various transactions such as retail purchases or online gaming, thanks to the evolving legal frameworks that permit them as a means of payment. Recently, a court in Shanghai determined that owning crypto is lawful, which has encouraged other countries to re-evaluate their views on cryptocurrencies.

Across the globe, the United States is moving towards a fresh presidency, which may bring a fresh perspective on digital currencies. The incoming president, Donald Trump, has signaled his support for cryptocurrencies, proposing policies that could boost the digital coin market. These include creating a national crypto reserve, mining Bitcoin exclusively in America, and dismissing the SEC chairman, Gary Gensler.

Potential Liquidation of $1 Billion Bitcoin Shorts

When Bitcoin reaches $100,000, it’s anticipated that approximately a billion dollars’ worth of Bitcoin shorts (betting against Bitcoin) will become available to the public. Given the significant price surge to $75,000 in previous events, these predictions are not unfounded. With this liquidation, the selling pressure will significantly decrease, enabling more individuals to buy crypto and potentially pushing its value even higher.

Bitcoin’s Monetary Power

In the past 16 years, Bitcoin has expanded its influence significantly. Initially, it was merely a digital currency used for trading purposes, but nowadays, Bitcoin serves as a common term for online transactions. You can utilize it to purchase goods in physical stores or online, engage in games, pay for travel expenses, and much more. This versatility is due to the anonymity, security, and consistent growth associated with Bitcoin.

Accessibility

Bitcoin is now accessible to anyone. With a few clicks of a button, you can choose a crypto platform and trade in your fiat for digital coins. The option to buy as little as $1 worth of BTC makes the asset available to literally everyone. Moreover, with Bitcoin ETFs, people get crypto coins as part of their trading portfolio, retirement plans, pension funds, and more. 

How Does Bitcoin’s Rise Influence Other Coins?

Due to Bitcoin being the most recognized form of cryptocurrency among both experts and novices, it’s expected that its movements have an impact on other digital currencies. When Bitcoin started to decline from its upward trend, this action triggered one of the biggest liquidations seen so far (and continues to do so).

As per Coinglass’s latest report, approximately $567 million worth of cryptocurrencies have been liquidated in the past 24 hours. Among these, Ether accounted for around $89.36 million, Dogecoin reached about $33.54 million, and Solana accounted for roughly $24.64 million.

Furthermore, the fluctuations in Bitcoin’s value have encouraged numerous traders to re-enter the market and reinvest in digital currencies. These individuals remain optimistic that this decline could offer them an opportunity to make profits once the price barrier is surpassed.

What Does the Future Hold for Bitcoin?

If Bitcoin manages to hit $100,000, one might wonder, “How much higher could it potentially rise?” However, predicting an exact ceiling for its value is impossible. Although there’s a finite number of Bitcoins in circulation, the worth of each coin doesn’t have any defined upper limit. As more people buy into cryptocurrency and its usage expands both legally and socially, Bitcoin’s potential value might as well be limitless, reaching heights comparable to the sky.

Keep in mind the significance of past occurrences. Previous milestones such as $50,000 and $75,000 have consistently faced resistance among the general public, causing a drop in Bitcoin’s price. Therefore, it’s reasonable to anticipate this pattern may recur.

Despite the obstacles it faced, the coin has successfully moved past them, as demonstrated by reaching the $100,000 mark. As a cryptocurrency, Bitcoin is known for its volatility, but so far, it has consistently shown a positive trend, paving the way for potential growth even beyond $100,000.

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2024-11-27 21:28