100,000 Milestone: BTC Completes the Journey from Cypherpunk Dream to Financial Mainstream

Author: Yohan Yun, CoinTelegraph; Compiler: Baishui, Golden Finance

Once seen as a fringe asset for cypherpunks and tech enthusiasts, Bitcoin has continued to climb, from $1 in 2011 to $1,000 in 2013, and now has reached the coveted six-figure mark in 2024.

Bitcoin's rise shows that it has evolved from a curious experiment to a legitimate global financial asset.

But the journey to $100,000 is far from a field of green candles. Cryptocurrency has been declared "dead" countless times, but each time it has risen from the grave.

Mikko Ohtamaa, co-founder of algorithmic trading firm Trading Strategy, noted: “The past 10 years have been pure speculation. Now is the time to move from speculation to real-world utility.”

The recent bull run stands out due to a few key differences.

Today, Bitcoin is more than just another speculative asset — it is widely viewed as a safe haven, a hedge against inflation, and a recognized asset class with a growing institutional base.

Source: Cynthia Lummis

Spot exchange-traded funds (ETFs) in major economies such as the United States and Hong Kong have made cryptocurrencies more accessible than ever, while the recent election of crypto-friendly presidential candidate Donald Trump in the United States has rolled out the red carpet for the cryptocurrency industry.

Trump's campaign promises included replacing SEC Chairman Gary Gensler, who is seen as an opponent of the cryptocurrency space due to his strict enforcement approach.

Investors hope that this shift will reduce regulatory barriers and create a friendlier environment for crypto assets. Gensler’s tenure was marked by a “regulation by law” approach, widely criticized by the industry for a lack of legal clarity.

The journey to $100,000 began with a series of disasters

Bitcoin’s rise to $100,000 was not without its share of setbacks. The road was fraught with wild price swings, market crashes, and, at times, existential doubt.

One of Bitcoin’s most notable near-death experiences was when Bitcoin first reached $1,000 in 2013 before falling to $200 in 2014. The collapse of Mt. Gox, then the world’s largest Bitcoin exchange, loomed over the market during this period, and its creditor payments are still a concern a decade later.

In December 2017, Bitcoin hit a new high of nearly $20,000, fueled by the initial coin offering (ICO) boom. However, regulators soon stepped in, with the U.S. treating ICOs as unregistered securities offerings and China banning them outright. By December 2018, Bitcoin was trading at $3,200.

Bitcoin’s next major recovery came in 2021, reaching $63,000 as institutions and high-profile companies like Elon Musk’s Tesla fueled the rally.

Source: Arkham Intelligence

But regulatory pressures dampened enthusiasm again: China cracked down on Bitcoin mining, sending the price of Bitcoin tumbling to $29,000. After hitting a high of $69,000 in November 2022, Bitcoin fell to lows of $15,000 amid crypto industry turmoil including the FTX crash, Three Arrows Capital bankruptcy, and the Terra-Luna stablecoin crisis.

Now, in 2024, Bitcoin has recovered. The U.S. Securities and Exchange Commission (SEC) approved a spot Bitcoin ETF in January, opening the door to wider participation, while Trump’s election in November helped fuel the rally.

“What’s driving us higher now is factors like ETF accessibility, corporate buy-in, and growing allocations from global institutions,” noted Justin d’Anethan, a market analyst in Hong Kong. “The BRICS economies’ de-reliance on the dollar also adds a layer of mystique, positioning Bitcoin as a potential hedge as the world reassesses the role of traditional reserve currencies.”

What does $100,000 mean for Bitcoin?

For Bitcoin bulls, $100,000 is more than just a number. It’s a psychological level that validates years of “laser eye” mania — a social media trend where Bitcoin supporters wear profile photos of laser eyes to show their confidence in the milestone.

But as d’Anethan explains, $100,000 isn’t the end goal.

“Bitcoin’s rally over the past year has been driven primarily by sophisticated players: we’ve seen corporate vaults (mostly MicroStrategy), the emergence of ETFs, and even pension funds allocating money to BTC, all without much fanfare,” he said.

“Retail investors haven’t piled in yet, and when that excitement comes, it won’t stop at $100,000.”

Trump’s campaign has also floated the idea of ​​building a strategic Bitcoin reserve, which has drawn mixed reactions.

Source: Ed Krassenstein/Impure Hoonter

Some see this as a step toward centralization, while others, like Quary, founder of bitcoin marketplace Magisat, see it as neutral to bitcoin’s decentralized ethos.

“Who holds bitcoin doesn’t actually have any impact on the network,” Quary noted.

“Hopefully the US and BRICS (Brazil, Russia, India and China) have similar interests in Bitcoin and all hold large amounts of Bitcoin. In my opinion, this is the best case scenario - an unbiased decentralized network where all forces can participate.”

Where will Bitcoin go next?

Reaching $100,000 is a symbolic achievement, but for many, it marks the beginning of a larger narrative for Bitcoin.

In the short term, with the Federal Reserve expected to continue its shift toward rate cuts, Bitcoin may find itself in a macro environment that is favorable for risk assets.

“As long as we don’t face a mass liquidation of bankruptcies in 2022 or an unforeseen black swan event, the path of least resistance appears to be upward,” d’Anethan said.

However, as history has shown, Bitcoin’s trajectory is rarely a smooth upward line. Even amid positive momentum, corrections are possible.

In a world of shifting economic power and evolving monetary policy, Bitcoin has transformed from a niche asset to a viable financial alternative.

Whether a hedge against inflation, a safe haven, or a symbol of financial sovereignty, Bitcoin’s climb to $100,000 sends a clear signal: the cryptocurrency age is here, with its enormous volatility, complexity, and transformative potential.