Bitcoin is moving closer to a historic $100,000 milestone, as experts believe the cryptocurrency is still undervalued.
On Wednesday, Bitcoin hit a new record of $94,000, spurred by reports suggesting that Donald Trump’s social media company is in talks to acquire crypto trading firm Bakkt. This news has fueled expectations of a crypto-friendly stance under Trump’s incoming administration, according to Reuters.
Bitcoin’s Recent Surge
Bitcoin, the largest and most popular cryptocurrency, has more than doubled in value this year. Currently trading at $94,291, it’s just below its all-time high of $94,378.
The first half of the week saw Bitcoin rise by 16%. Analysts suggest that the rally isn’t over yet, with projections pointing to $100,000 in the near future. Reports emphasize that the cryptocurrency is still not overvalued despite its rapid growth.
Bitcoin’s value has climbed 35% since the U.S. Presidential election on November 5. Crypto Quant highlighted in a report that Bitcoin’s current levels remain healthy, citing valuation metrics like the Market Value to Realized Value (MVRV) ratio, which shows the currency is still outside the overvalued range.
Expert Insights on Bitcoin’s Growth
Manish Chhetri, an analyst at FXStreet, stated:
“Bitcoin has broken the rising trend in the short term, signaling even stronger growth. The price chart shows no resistance, suggesting further increases. In a downturn, support is seen around 66,000 points. The positive volume balance indicates strong buyer activity, making Bitcoin technically positive in the short term.”
Ryan Lee, chief analyst at Bitget Research, explained that Bitcoin follows a four-year cycle tied to its halving events, where mining rewards are reduced. This supply cut has historically led to price increases.
Bitcoin’s Peak Timing:
- The last halving occurred in April 2024, suggesting a peak around late 2025 if the cycle remains consistent.
- The Pi Cycle Top Indicator predicts a peak between December 2024 and January 2025.
Market sentiment aligns with this analysis, suggesting a new high six to nine months after a mid-cycle peak, expected in early 2025. Price predictions for Bitcoin range between $118,928 and $150,000 by late 2025.
New ETF Options and Market Growth
Shivam Thakral, CEO of BuyUcoin, highlighted that Bitcoin recently reached $94,000 following the launch of spot Bitcoin ETFs on Nasdaq. These ETFs provide investors with flexible options, potentially attracting institutional investors and increasing trading volumes.
Thakral added:
“While regulatory changes are important, wider adoption depends on better integration with traditional finance. This will pave the way for advanced investment strategies and a stronger market.”
Vijay Valecha, Chief Investment Officer at Century Financial, noted that cryptocurrency markets have soared since the U.S. election. The anticipated regulatory support from Trump’s administration has driven the global cryptocurrency market’s value above $3 trillion, according to CoinGecko data.
