Bitcoin has reached a milestone, trading at six-digit levels for the first time since its inception. The cryptocurrency hit a recent record high of $103,679 on Thursday, up more than 140% year-to-date and pushing its market capitalization above $2 trillion.

This achievement has reignited enthusiasm in the investing community, cementing Bitcoin’s position as a key player in the global financial market.

Despite this impressive feat, Bitcoin experienced a slight pullback. As of this writing, it is trading at $101,573, up 6% in the last 24 hours.

What’s next?

IntoTheBlock market analysis platform weighed on this development, offering insight into Bitcoin’s potential trajectory. Platform analysts emphasized that Bitcoin’s restricted supply and growing interest from institutional investors and even countries create significant growth potential.

Bitcoin exceeds $100,000!

A milestone, but what’s next?

With restricted supply and powerful interest from gigantic investors (and even countries), the potential seems limitless. However, we recommend looking at past cycles to gauge the potential.

This chart shows… pic.twitter.com/5b60oTRJy3

— IntoTheBlock (@intotheblock) December 5, 2024

However, previous cycles suggest diminishing returns, with historical post-halving cycles showing returns of 7,900% in 2013, 2,560% in 2017 and 594% in 2021.

Based on these trends, IntoTheBlock expects a more conservative upside range of 100-200% from the halving price, suggesting a top in the $130,000 to $190,000 range. IntoTheBlock analysts wrote in particular:

So, while some are calling for a million dollars for Bitcoin, a more reasonable expectation would be: 100%-200% return on halving priceplacing the peak between 130,000 and 190 thousand

However, the analyst also pointed out: “Unless, of course, Bitcoin becomes a global reserve asset.”

Analysis of market trends and investor behavior

Meanwhile, a CryptoQuant analyst assured additional observations on Bitcoin’s recent performance and market behavior. Bitcoin purchases continue to raise, with the Coinbase Premium Index reflecting powerful purchasing activity in the United States, according to the analyst.

The index tracking the price difference between Coinbase Pro and Binance shows continued positive data, indicating the busy participation of US investors.

The analyst emphasized the importance of monitoring this index in a broader analysis of trends. For example, during periods classified as “fear phases,” when buyers withdraw and bearish momentum does not emerge, the market often creates opportunities for strategic entry points.

If the index remains in the positive zone, it signals a continuation of the uptrend, making a pullback an optimal time to position. Until Bitcoin reaches what the analyst describes as the “excess phase”, buy positions should be held, while profitable positions should be hedged to reduce risk.

Featured image created with DALL-E, chart from TradingView