On December 4, Eastern Time, Bitcoin's price exceeded $100,000 due to news such as Trump's nomination of Paul Atkins as Chairman of the U.S. Securities and Exchange Commission. However, there is uncertainty as to whether Bitcoin can maintain $100,000.
Positive factors
- Friendly policy environment: Paul Atkins, the SEC Chairman nominated by Trump, is friendly to cryptocurrencies and may bring more relaxed regulatory policies after taking office. In addition, Russian President Putin also publicly supports cryptocurrencies and formulates a tax framework for them, which provides a favorable policy environment for the development of Bitcoin.
- Growing market demand: The approval of Bitcoin spot ETFs has lowered the investment threshold and risk, attracting more capital inflows. Institutional investors such as Microstrategy have increased their holdings, and the issuance of stablecoins also shows that the market is optimistic about the future of the crypto market, providing financial support for Bitcoin.
- Industry innovation and development: The cryptocurrency industry continues to innovate, and the combination of AI and Web3 has become a hot spot, attracting traditional investors and entrepreneurs. New application paradigms are gradually unfolding, adding momentum to the development of cryptocurrencies such as Bitcoin.
- Bitcoin halving expectations: Bitcoin mining rewards are halved every 4 years, with a total upper limit of 21 million. The current halving expectations make the market believe that the second half of the crypto bull market has just begun, and 2025 will still be a bull market year, which will have a driving effect on Bitcoin prices.
Risk factors
- Market volatility risk: The Bitcoin market has always been volatile, and prices are affected by many factors, such as policy changes and market sentiment. After breaking through $100,000 this time, there is a view in the market that it may pull back by 20%.
- Regulatory risks: Despite some policy support, the regulation of cryptocurrencies such as Bitcoin is still uncertain worldwide, and future changes in regulatory policies may have a significant impact on their prices.
- Competition risk: As the cryptocurrency market develops, other cryptocurrencies such as Ethereum and Dogecoin are also competing for market share. Although Bitcoin's current market share has increased, the competition landscape may still change in the future, affecting its price and market position. #BTC新高10W $BTC
