Bitcoin cracked US$100,000 on Thursday afternoon (AEDT) after hovering in the US$90,000s range since mid-November.
In the lead-up to bitcoin’s milestone, analysts had pinpointed US$100,000 as the “next major psychological resistance” for the cryptocurrency.
Now, Magnet Capital co-founder Egor Sidelska said the crypto asset is primed to reach even greater heights.
“The demand side is at escape velocity now. We had a price target of US$168,000 by the middle of next year, and I honestly think that we’re probably going to hit it sooner,” Sidelska told InvestorDaily.
Bitcoin has notched a series of victories in recent months, and while it briefly stalled on its path to US$100,000, the cryptocurrency has still gained an impressive 45 per cent in the four weeks since Donald Trump’s sweeping election win.
This latest burst of growth is suspected to have been propelled by the President-elect’s latest announcement. Namely, in the early hours of Thursday morning, Donald Trump posted on Truth Social that crypto advocate Paul Atkins would be the next chairman of the Securities and Exchange Commission (SEC).
However, according to Sidelska, this latest rally cannot be attributed to any single event. Instead, he said, it is more comparable to a “perfect storm” of market conditions.
“It’s really hard to pinpoint what was the single thing that made the market get to where it is. I think it’s just a combination of factors.
“One of them is that we have this appointee, which is seemingly quite a good appointee for the crypto market. It’s also endorsed by Esther Pierce, who has been a crypto advocate and has campaigned for the unfair treatment of crypto businesses by the SEC.”
But according to Sidelska, the impact of increased institutional activity and flows into crypto exchange-traded funds are nothing to scoff at, either.
“When the market goes up, we can point to 50 different reasons as to why it goes up. But in reality, I think it’s just the cycle playing out,” Sidelska said.
“You’ve got Trump continuing to make good on his promises by appointing people that are at least not antagonistic to crypto, if not friendly. So from our position, it’s like you’re just breaking down the barriers to regulatory clarity. And Wall Street can see that, as well as traditional finance.”
BTC Markets chief executive Caroline Bowler said the news highlights a possible shift in market dynamics, with capital rotating out of cryptocurrencies like XRP and TRX – both seeing double-digit declines – back into bitcoin.
“The 3 per cent rise in bitcoin and the overall market cap reflects renewed confidence, potentially driven by profit-taking and fresh investment,” Bowler said.
Adding to this momentum, according to her, is the broader regulatory landscape closer to home. Recent developments, such as the Australian Securities and Investments Commission’s (ASIC) ongoing consultation on digital asset regulations, signal significant change.
“Industry stakeholders are evaluating ASIC’s proposals, particularly regarding stablecoins, wrapped tokens, and DeFi tools, which could impact Australians’ access to certain crypto products.
“A well-structured regulatory framework is essential to ensure local platforms remain competitive while safeguarding innovation.
“Together, these domestic and international factors create a supportive backdrop for bitcoin’s historic rise,” Bowler said.
