Bitcoin reached $100k this week – Forecast short and long term

Last Updated on 8 December 2024 by CryptoTips.eu

Bitcoin, the largest and best known digital currency, reached that magical price level of $100,000 for the first time ever this past week. Altcoins are also in good shape and rose along  smoothly. The question that we’re left with is what can we expect before the end of the year. What for the short and long term?

Short term

All the goals we set for Bitcoin at the beginning of the year have been achieved. The ETFs were approved and even though the Ether ETFs were much less popular, this was still a great success. A new generation of investors (American boomers) discovered Bitcoin in this way and, thanks to their long-term vision, helps to support the price of Bitcoin.

 

The ATH was adjusted from $69,000 in November 2022 to $74,000 in March 2024 and $102.00 in December 2024.

What’s next? Well, first of all, you would normally expect a step back in the first two weeks of December. After all, Bitcoin has risen by more than 40% in a month already and so a period of profit taking would be quite normal.

So far in 2024, Bitcoin has fallen less dramatically after large periods of gains than it used to. Bitcoin is therefore less volatile this year, which is probably due to the arrival of new investors who entered through the Bitcoin ETFs (which are very popular in the United States).

However, as the Wall Street Journal also pointed out this Friday, stocks (and therefore also Bitcoin ETFs) are too expensive compared to almost every economic data point at the moment, and so analysts in New York and Los Angeles also expect that we will first take it a step back before we go higher again.

The Federal Reserve, which meets on December 17 and 18 to discuss a possible interest rate cut, could provide a final boost to both stocks and Bitcoin.

Long term

In the medium (three months) and longer (2025) term, Bitcoin’s price depends on several circumstances, not least what the new US administration will do in terms of regularization. If Washington DC, under their new crypto boss David Sacks, were to establish regulations for crypto like the Mica rules in Europe, this could give a new boost to Bitcoin next year.

Furthermore, we should not forget that geopolitics can also play a role (Ukraine versus Russia and the situation in the Middle East) as well as the new Whales who want to cash in their Bitcoin profits in 2025, and I am thinking especially of Bhutan and El Salvador. .

If either of those two ends up in a political crisis next year, there will be a need to cash in their new Bitcoin wealth. Remember what Germany did last summer when it exchanged 2 billion euros worth of Bitcoins (when the price was only trading around $60,000) to fill their coffers.

Happy trading.


Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu