- Bitcoin’s 129% year-to-date gain was driven by halving and macroeconomic factors.
- Analysts predicted further gains, but challenges such as altcoin dominance and market corrections remained.
Bitcoin [BTC] has had an exceptional 2024, with a remarkable gain of 129% year-to-date, thanks to a series of pivotal events, including the April halving and the outcome of the US presidential election.
As the cryptocurrency approaches the $100,000 mark, all eyes are on Bitcoin’s next move. Analysts are optimistic, with many predicting further gains as market conditions continue to evolve.
As Bitcoin rides this wave of momentum, the question remains: will it break the $100,000 threshold and go even higher?
Bitcoin’s rise after the halving
Bitcoin’s 2024 halving in April significantly reduced rewards for miners, reducing new BTC issuance to 3,125 BTC per block.
Historically, halvings lead to supply shocks that amplify price momentum in subsequent months. True to form, Bitcoin rose more than 85% since April and surpassed $95,000 in December.
This rally was fueled by a mix of macro and sector-specific factors. Bitcoin’s status as “digital gold” gained further traction amid inflation concerns and geopolitical instability, attracting institutional investors.
Additionally, renewed retail interest and the US presidential election, which spotlighted crypto-friendly policies, boosted optimism.
The chart shows a steady uptrend, supported by strong on-chain metrics such as rising active addresses and growing open interest in BTC futures.
However, the RSI of near 61 indicates that the asset is approaching overbought territory, pointing to possible near-term consolidation.
The $100,000 threshold and changing market dynamics
Bitcoin’s march towards $100,000 remains a defining story for the market. On November 22, BTC briefly reached $99,000 before retreating to the $96,000-$98,000 range.
Meanwhile, Bitcoin Futures on the Chicago Mercantile Exchange (CME) crossed $100,200 twice in a week on November 29, fueling speculation that spot prices could soon follow.
While breaking $100,000 is largely psychological, it also represents a crucial milestone for market sentiment.
Despite Bitcoin’s gains, its dominance fell to 56.1% on November 30 as investors turned to altcoins, suggesting the start of a potential altcoin season.
This decline in dominance signals profit-taking among Bitcoin holders and renewed interest in higher-risk assets, indicating a diversification of market focus.
Bitcoin’s immediate trajectory depends on whether the $100,000 psychological barrier becomes a reality, in addition to Bitcoin’s ability to maintain dominance amid surging altcoin activity.
What lies ahead for Bitcoin?
Bitcoin’s trajectory pointed to further growth, with analysts like Raoul Pal predicting a local top of $110,000 in early 2025 and a potential peak in late 2025.
Macro factors such as the April halving and institutional adoption continue to reinforce long-term bullish sentiment. However, risks such as regulatory changes and broader market corrections could dampen gains.
Read Bitcoin’s [BTC] Price forecast 2024–2025
As altcoins gain momentum, Bitcoin’s dominance may come under additional pressure, signaling a diversifying market.
Whether Bitcoin breaks the psychological barrier of $100,000 and maintains its upward momentum will depend on renewed buying pressure and broader trends in the crypto market.