Bitcoin crosses $100K, On track for $120K after potential sell-off

Bitcoin has surpassed the $100,000 threshold for the first time, propelled by anticipations of a regulatory landscape favorable to cryptocurrencies under the forthcoming presidency of Donald Trump.

This achievement marks a significant milestone for the digital currency; however, Nigel Green, CEO of deVere Group, a prominent financial advisory and fintech firm, anticipates a brief period of selling before Bitcoin ascends further to reach $120,000 in the first quarter of 2025.

“The crossing of the $100,000 barrier was bound to happen,” states Green, who predicted last month that Bitcoin would attain this landmark following Trump’s electoral success.

Nevertheless, given the significant increase within a brief timeframe, it is to be expected that certain investors will choose to secure their profits. This anticipated sell-off is likely to serve as a temporary interruption before Bitcoin continues to gain momentum, potentially reaching $120,000 as soon as the first quarter of the upcoming year.

The leading cryptocurrency has more than doubled from its 2024 low of $38,505 and has experienced a 45% increase in just two weeks following Trump’s election victory. This swift rise highlights Bitcoin’s robustness and its expanding function in the global financial landscape as a safeguard against inflation and a means of portfolio diversification.

Bitcoin’s remarkable surge is occurring as markets speculate that a Trump 2.0 administration will establish a more favorable regulatory environment for cryptocurrencies. Investors are optimistic about the President-elect’s supportive stance towards digital currencies, anticipating policies that will streamline regulations and foster innovation in blockchain technology.

The anticipated regulatory approach under Trump is already generating positive sentiment throughout the market. His administration is expected to prioritize initiatives that facilitate the adoption and integration of digital assets into conventional financial systems. Furthermore, it is likely that Trump will appoint a head of the Securities and Exchange Commission (SEC) who is supportive of the cryptocurrency sector. This political transition is poised to enhance Bitcoin’s attractiveness to both institutional and retail investors.

Nigel Green points out that significant structural changes are already in motion. Prominent institutional investors are increasingly recognizing Bitcoin as a fundamental asset within diversified portfolios, driven by the expectation of clearer regulations.

Meanwhile, individual retail investors are adopting cryptocurrency as a form of digital gold—serving as a safeguard against inflation and political instability, while also taking advantage of its exceptional growth potential.

What Factors Are Contributing to the $120,000 Projection?

The projection for Bitcoin to reach $120,000 in the coming months is supported by multiple elements. Firstly, the expected sell-off is anticipated to be brief, as long-term investors and new purchasers are likely to take advantage of the short-term decline.

Secondly, the economic policies of former President Trump, particularly those aimed at fostering technological advancement, are expected to enhance Bitcoin’s mainstream acceptance and attract institutional investments.

Nigel Green observes that Bitcoin’s underlying fundamentals remain strong, with increasing engagement from traditional financial entities solidifying its status as a revolutionary asset class.

“Bitcoin has evolved beyond being merely a speculative investment,” he states. “It has become an essential element of the future financial landscape, appealing to a wide range of investors from major Wall Street firms to individual retail investors looking to safeguard and expand their wealth.”

Although the journey to $120,000 will likely include phases of market volatility, the CEO of deVere Group underscores the necessity of adopting a long-term viewpoint. “The potential for a temporary sell-off will create an exceptional buying opportunity for those who recognize Bitcoin’s significance amid global economic and political changes,” he concludes.