Bitcoin Experiences Significant Price Surge Driven by Growing Demand
Bitcoin (BTC) soared past the $100,000 mark on December 5 during the early Asia trading session, buoyed by recent statements made by Federal Reserve Chair Jerome Powell. In an interview with the New York Times, Powell highlighted Bitcoin’s position as a rival to gold rather than the U.S. dollar.
Describing Bitcoin as a speculative asset akin to virtual gold, Powell emphasized its competition with gold, not the dollar.
Following Powell’s remarks, BTC saw a substantial spike from $97,000 to a new record high of $104,000, marking an increase of over 50% since the November U.S. elections.
Future Prospects for BTC
SwissBlock, a cryptocurrency research entity, expressed surprise at Powell’s influence but welcomed the boost for the digital asset. The firm commented,
“Reaching $100,000 is a significant milestone! The unexpected endorsement from Fed Chair Jerome Powell gave Bitcoin a substantial push. Our immediate target now stands at $105,000.”
Arthur Azizov, the CEO of B2BINPAY, a comprehensive crypto business ecosystem, attributed the surge to President Trump’s nomination of crypto-friendly Paul Atkins as SEC chair.
Azizov suggested that BTC might consolidate around $100,000 before potentially retracing to around $85,000 in the coming months.
“I anticipate Bitcoin stabilizing near the $100,000 mark before experiencing a correction to the five-digit range, possibly settling around $85,000 in the near future.”
Presto Research, a crypto research firm, warned of potential profit-taking amid the rally but also anticipated increased demand from institutional investors following the $100,000 breakthrough.
“We foresee further upward momentum as the $100,000 milestone will likely attract heightened interest, especially from institutional players.”
Looking ahead, CryptoQuant’s Ki Young Ju predicted that BTC could target $146,000 as a peak for the current cycle and aim for $112,000 by year-end, based on the realized cap price band.