Cryptocurrency

Bitcoin Price Surpasses $100K Again: What's Driving the Increase?

Bitcoin's price has risen approximately 30 per cent in the past month, crossing the $100K mark and maintaining its upward momentum

Bitcoin crossed the $100,000 mark
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Bitcoin crossed the $100,000 mark on Thursday for the first time since February, marking a key milestone in its ongoing price movement. Given that the cryptocurrency is trading close to its all-time highs, the development has attracted investors' and market participants' renewed interest. The current concern is whether Bitcoin can maintain this level and keep growing.

Bitcoin was trading at $103,048.27 at the time of writing, up 4.18 per cent over the previous day. The 24-hour trading volume stood at $66.73 billion, reflecting heightened market activity. With analysts and investors considering the potential for a new record, the cryptocurrency presently seems to be getting closer to its record high of $109,110, which was established on January 20.

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In the last month, Bitcoin's price has risen by 33.87 per cent, highlighting a significant uptick in market activity and investor interest, according to Coinmarketcap.

What's Driving the Bitcoin Price Rally

As Bitcoin crosses the $100,000 mark, Sumit Gupta, Co-founder, CoinDCX, points to several key factors that are contributing to Bitcoin price surge.

He says: "Bitcoin breaching the $100,000 mark reflects the asset's growing maturity and increasing institutional and retail confidence. Key drivers include record inflows into Bitcoin Spot ETFs, forward-thinking policies such as Arizona's Bitcoin Reserve Fund, and rising Bitcoin dominance. With better infrastructure and more transparent regulations, Bitcoin's place in international portfolios is expected to rise significantly."

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Sumit added that BTC's rise to $100K is not only boosting its own market but also driving a rally in altcoins. With an estimated $235 billion in fresh liquidity joining the cryptocurrency market, altcoins like Ethereum have seen a significant 20 per cent rise, which is indicative of institutional trust and general market optimism.

How Should Investors Respond to Bitcoin's Surge

As Bitcoin approaches significant milestones like $100K, investors are faced with the decision of whether to take profits or hold for long-term growth. Here's how investors can navigate this crucial choice, according to Edul Patel, Co-founder and CEO of Mudrex:

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He says, "Investors should take a long-term approach, especially in the volatile crypto market. Profit-taking should be based on an asset's fundamentals rather than short-term price movements."

He added, "Bitcoin's fixed supply and growing demand make it a strong long-term investment, and strategies like dollar-cost averaging can help manage risk and optimize returns."

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