Bitcoin $100K party: Why the price is a psychological milestone for longtime crypto believers

Crypto enthusiasts are rallying over their new riches on social media after Bitcoin crossed the $100,000 threshold on Thursday.

“$100,000 is a psychological milestone,” entrepreneur and investor Anthony Pompliano wrote on X. “Every boomer is waking up to headlines tomorrow and then going to buy some bitcoin just in case they were wrong. Welcome to the next phase of the game.”

$100,000 is a psychological milestone.

Every boomer is waking up to headlines tomorrow and then going to buy some bitcoin just in case they were wrong.

Welcome to the next phase of the game.

— Anthony Pompliano 🌪 (@APompliano) December 5, 2024

Crypto has gone through a flurry of ups and downs since its creation 16 years ago. But it’s an especially dramatic turnaround from when the price of a single Bitcoin dropped below $17,000 in 2022 after the dramatic collapse of crypto exchange FTX. Still, fans of the digital coin have held strong and clinched several wins this year.

The Securities and Exchange Commission in January approved spot Bitcoin exchange trade funds, which are popular financial products from Wall Street firms. But the biggest boon was the reelection of President Donald Trump, who has shifted from being a crypto skeptic to one of its more vocal advocates. (He’s even launched his own crypto venture.) Just hours before Bitcoin hit $100,000, Trump had appointed Paul Atkins, who is pro-crypto and actually cochaired the Token Alliance, to run the Securities and Exchange Commission.

Many Bitcoin holders are basking in their wins , essentially viewing this as an “I told you so” moment. “$100,000 a Bitcoin doesn’t just represent a price,” Bitcoin enthusiast Dan Held wrote on X. “It represents that the world is gradually acknowledging Bitcoin as the reserve currency of the future. It represents a rejection of the existing financial system. It represents financial freedom.”

Jerome Powell says "Bitcoin is a competitor with Gold, not the US Dollar" – CNBC

Bitcoin is quickly being recognized as gold 2.0, even by traditional finance and the government.

This is what winning looks like 👏

— Dan Held (@danheld) December 4, 2024

To be sure, some experts still warn of the risks associated with the coin. The $100,000 level is “merely a psychological factor and ultimately just a number,” Dan Coatsworth, an analyst at the British investment company AJ Bell, wrote in a commentary published Thursday. And even with the soaring price, Coatsworth still says crypto is “volatile, unpredictable and is driven by speculation, none of which makes for a sleep-at-night investment.” (Coatsworth also pointed to recent research from the Switzerland-based Bank for International Settlements, which found that about three-quarters of retail investors on crypto exchange apps likely lost money on Bitcoin investments between 2015 and 2022.)

But don’t try telling that to the true believers. “We have already won, this was my target to proclaim we have won,” one user posted on TikTok. “Now we’re about to do a lot more winning, this was just the warm up win, the pre-win. Now it’s time to lock in.”

@kessycrypto

Bitcoin hits 100k #bitcoin #100kbitcoin #crypto

♬ original sound – Kessycrypto

One thing is certain: We’re going to be talking about crypto quite a bit one way or another over Trump’s next four years.

https://www.fastcompany.com/91241371/bitcoin-100k-party-why-the-price-is-a-psychological-milestone-for-longtime-crypto-believers?partner=rss&utm_source=rss&utm_medium=feed&utm_campaign=rss+fastcompany&utm_content=rss