Bitcoin smashed through US$100,000: Brief sell-off expected before surge to US$120,000
Bitcoin soared past the magical US$100,000 (A$155,000) per coin mark for the first time, driven by expectations of a crypto-friendly regulatory environment under Donald Trump’s incoming presidency.
While this milestone represents a seismic moment for the digital asset, Nigel Green, CEO of deVere Group, one of the world’s largest financial advisory and fintech organizations, predicts a short-term sell-off before Bitcoin rallies further to hit US$120,000 (A$186,000) in the first quarter of 2025.
“This $100,000 breakthrough was inevitable,” said Green, who forecast last month that Bitcoin would reach this historic level following Trump’s election victory.
“However, with such a dramatic rise in a short period, it’s natural that some investors will lock in profits. This likely sell-off will be a temporary pause before Bitcoin builds on its momentum, surging to US$120,000 as early as the first quarter of next year.”
The world’s largest cryptocurrency has more than doubled from its 2024 low of US$38,505 and surged 45% in just two weeks since Trump’s election win.
This rapid ascent underscores Bitcoin’s resilience and growing role in global finance as a hedge against inflation and a tool for portfolio diversification.
“Bitcoin’s extraordinary run comes as markets anticipate that Trump 2.0 will create a more favorable regulatory framework for cryptocurrencies. Investors are betting on the President-elect’s pro-crypto stance, with policies expected to reduce red tape and promote innovation in blockchain technology.
“Trump’s likely approach to cryptocurrency regulation is already fueling optimism across the market. His administration will almost certainly prioritize policies that encourage adoption and integration of digital assets into mainstream financial systems. We also expect Trump will install a head of the Securities and Exchange Commission (SEC) who is friendly to the crypto industry.”
This political shift is set to amplify Bitcoin’s appeal among both institutional and retail investors. Nigel Green highlights that structural changes already underway.
“Major institutional players are increasingly viewing Bitcoin as a core asset in diversified portfolios, spurred by expectations of regulatory clarity. And individual retail traders are embracing the crypto as digital gold – a hedge against inflation and political uncertainty, while also capitalizing on its unprecedented growth potential.”
What’s Driving the $120,000 Forecast?
The forecast for Bitcoin to hit $120,000 within months is underpinned by several factors. First, the anticipated sell-off is expected to be short-lived, as long-term holders and new buyers step in to capitalize on the temporary dip.
Second, Trump’s economic policies, particularly around promoting technological innovation, are likely to increase Bitcoin’s mainstream adoption and institutional inflows.
Nigel Green notes that Bitcoin’s fundamentals remain robust, with growing participation from traditional financial institutions reinforcing its position as a transformative asset class.
“Bitcoin is no longer just a speculative asset,” Green explained. “It is a core component of the future of finance, appealing to everyone from Wall Street heavyweights to retail investors seeking to protect and grow their wealth.”
While the road to $120,000 will undoubtedly feature periods of volatility, the deVere Group CEO emphasizes the importance of maintaining a long-term perspective.
“The possible temporary sell-off will present an incredible buying opportunity for those who understand Bitcoin’s potential in the context of global economic and political shifts,” Green concluded.
