The apex cryptocurrency Bitcoin crossed the $100,000 mark finally on December 5 early monring, Indian Standard Time, after weeks of teasing crossing into six figures.
Bitcoin traded at above $102,139 (86.5 Lacs) a piece at the time of writing at noon and the rally showed absolutely no signs of slowing down.
Amid this surge, ace U.S. investor Cathie Wood pointed to old research from her hedge fund Ark Invest that suggested Bitcoin would test levels as high as $124,000 before the year is out.
“The lower bound above has just been met. We look forward to what the rest of 2024, as well as 2025, have in store for Bitcoin,” Ark Invest Digital Asset Trading Analyst David Puell said, in the post quote-tweeted by Wood, indicating he expects further upside before new year kicks in roughly three weeks later.
Puell, in analysis published on November 15, just ahead of the latest bull cycle, had suggested that the cryptocurrency was due the “post-halving” bull run from earlier in the year and it was likely to come in 2024.
The analyst had suggested that Bitcoin failed to shoot up post-halving in April 2024 due to “long-dormant” coins being released into circulation by U.S. and German governments, alongside repayments to creditors of defunct cryptocurrency exchange Mt. Gox.
Halving refers to an event where miner rewards for mining Bitcoin are cut in half every four years.
This leads to BTC getting more expensive, as the reduced supply of new Bitcoin entering the market creates scarcity, which, coupled with sustained or increasing demand, tends to drive up the price over time.
This halving mechanism ensures Bitcoin’s limited supply cap of 21 million is maintained, reinforcing its deflationary nature and value proposition as a store of wealth.