After Bitcoin Hits $100,000, Where Does Crypto Go Next?

The value of one bitcoin has exceeded $100,000 for the first time, boosted by US President-elect Donald Trump nominating cryptocurrency advocate Paul Atkins to chair the Securities and Exchange Commission. The crypto community believes Atkins’ appointment would mark a major shift in how the United States regulates the space, moving away from the enforcement action under Gary Gensler.

Since the postelection cryptocurrency rally began, bitcoin has been expected to cross this threshold, particularly as its price has more than doubled in 2024. This could spark even more buying interest in an already feverish market. “From a technical point of view, the $100,000 level represents an important and symbolic resistance, the breach of which could attract new capital, especially due to renewed confidence among long-term investors,” says Directa SIM analyst Stefano Bargiacchi.

Bitcoin Is in a Price Discovery Stage

The move above $100,000 could be a technical “sell” signal for some. “This milestone also represents an important psychological level, because it is a relevant profit-taking threshold for those who invested five or 10 years ago,” says Ferdinando Ametrano, managing director of CheckSig and a professor of bitcoin and blockchain technology at Milan-Bicocca University. But he adds that market sentiment will likely remain buoyant: “Bitcoin is in a phase of price discovery above previous all-time highs—uncharted territory that attracts attention and speculation.”

Bargiacchi agrees, saying the milestone could give long-term investors the confidence to hold on for further gains: “Rather than an immediate correction, crossing the key level could trigger a new uptrend phase, with the price driven by optimism and price discovery dynamics.”

Spot Bitcoin ETFs: A Turning Point

The ground for 2024’s bitcoin boom was laid in January, when the SEC approved the sale of exchange-traded funds linked to the spot price of bitcoin. Before this, many believed the FTX collapse strengthened the case for tighter crypto regulation. In November 2023, FTX founder Sam Bankman-Fried was found guilty of fraud and conspiracy, and he was sentenced to 25 years in prison in March 2024.

John Plassard, senior investment specialist at Mirabaud Group, says that since the SEC’s decision, institutional investors are increasingly embracing bitcoin, aided by investment products like ETFs: “The entry of major asset managers such as BlackRock BLK and Fidelity FNF has further legitimized bitcoin as a portfolio asset. Moving forward, institutions are likely to deepen their involvement as regulatory clarity improves, viewing bitcoin as a hedge against inflation and economic uncertainty. However, risk management will remain a priority, given the historical volatility.”

Crypto Investors: Prepare for Volatility

Cryptocurrencies are known for their high volatility. Prices can fluctuate significantly in short periods, induced by market sentiment, regulatory news, technological developments, and macroeconomic trends.

“Investors should approach bitcoin investing with the understanding that volatility is an inherent characteristic. This means being prepared for potentially substantial price corrections and declines in value, regardless of current conditions,” explains Dovile Silenskyte, director of digital assets research at WisdomTree. “Investors must also recognize that volatility can work both ways. While it presents the possibility of substantial upside gains, it also carries the risk of significant losses”.

So how should investors interested in bitcoin or other cryptocurrencies behave? “The first piece of advice is to clearly define the time horizon and understand how cryptocurrencies work, as well as the risks associated with them,” says Bargiacchi. “A systematic approach, such as one based on accumulation plans [like monthly payments], can help mitigate volatility, avoiding often-unsuccessful attempts to time the market.” He says it’s also essential to invest only a portion of the capital you are willing to lose, without using funds earmarked for current expenses or emergencies.