What Happens if Bitcoin Hits $100K? A Look at the Potential Impact

As we approach the end of 2024, all eyes are on Bitcoin (BTC) as it nears the psychological and historic milestone of $100,000. Many analysts are speculating on whether Bitcoin will break this barrier by the close of the year, with some saying it’s a matter of "when," not "if."

While the digital currency is currently trading above $92,000, questions about the impact of such a surge, on both the market and its broader influence, remain.

In this article, we will explore what could happen if Bitcoin reaches $100K, including the likely market reactions, the potential for an altcoin season, and the catalysts that might drive Bitcoin’s price to unprecedented heights.

Bitcoin: The Road to $100K

Bitcoin’s surge toward $100,000 is not happening in a vacuum. It is the result of a confluence of factors that are propelling it higher. Institutional support has been a major driver, with financial giants like BlackRock investing heavily in Bitcoin and launching Bitcoin ETFs (Exchange Traded Funds) that have opened the door for traditional investors.

The approval of these ETFs has brought significant inflows into the crypto market, with Bitcoin ETFs alone attracting $2.6 billion post-2024 U.S. electioncal developments also play a crucial role.

The election of Donald Trump has led to increased optimism about a more crypto-friendly U.S. government, which could potentially propel Bitcoin prices even higher in the near future.

The idea of Bitcoin being integrated into national financial systems has generated optimism, with some predicting a Bitcoin reserve, similar to gold reserves, being established by governments worldwide .

Furtalving event earlier in 2024—where the reward for mining new Bitcoin blocks was cut in half—has led to a tighter supply of the digital asset. As history has shown, halving events tend to precede price increases as reduced supply meets ongoing demand .

Bitcoin Price Today

As we can see from the chart above, the price of Bitcoin is rising again today. If a few hours ago Bitcoin was still at $92,000, when this article was written on November 21, Bitcoin was traded at $94,753, very close to $100,000.

The prediction that Bitcoin will rise to $100,000 will not be just a fantasy at the end of the year. If Bitcoin continues to consistently increase by 1-2%, even at the end of November, the price of $100K can be achieved immediately and it is possible that it could reach more than $150K at the beginning of the year.

Both Bitcoin futures and trading, all prices have experienced similar increases. This increase in Bitcoin will be a trigger for other crypto tokens to soar.

What Happens When Bitcoin Hits $100K?

If Bitcoin does hit the $100K mark, several dynamics will unfold, shaping the future trajectory of the cryptocurrency market.

1. Market Reactions and Profit-Taking

Historically, when Bitcoin hits significant milestones, it attracts attention from both institutional and retail investors. This surge in interest often leads to a rush of profit-taking, with some investors choosing to sell and lock in their gains.

This could trigger a temporary selloff in the short term, followed by consolidation as the market digests the new price levels.

On the other hand, if Bitcoin can maintain its momentum above $100K, it could solidify its status as a mainstream asset, attracting even more capital into the crypto space. Bitcoin's success could reignite broader interest in digital assets, which have somewhat lagged behind Bitcoin in recent years.

2. Renewed Interest in Altcoins

Bitcoin’s success in reaching $100K could spark renewed interest in altcoins. While Bitcoin has been the dominant force in the crypto market, altcoins have not mirrored its success to the same degree.

Ethereum (ETH), for example, has shown strong potential due to its foundational role in decentralized finance (DeFi) and the growing importance of smart contracts. But despite Bitcoin’s surge, Ethereum and other altcoins have lagged behind.

Historically, Bitcoin’s rallies have been followed by an "altcoin season", where lesser-known cryptocurrencies experience exponential growth. In 2021, for example, when Bitcoin's price surged, altcoins like Solana and Polygon saw dramatic increases. This phenomenon could repeat once Bitcoin breaks the $100K barrier, with altcoins potentially following suit.

Some of the more innovative and niche projects could see outsized growth as a result of Bitcoin’s success. For example, projects like XYZVerse (XYZ), an all-sport meme coin, could capitalize on the renewed market excitement by offering unique opportunities to investors. XYZVerse seeks to tap into the sports and meme coin intersection, leveraging the growing enthusiasm for both sectors .

3. Increased Retail and Institutioipation

As Bitcoin’s price rises and crosses new thresholds, retail investors are likely to re-enter the market. The $100K price point could reignite interest among casual investors who have been sitting on the sidelines.

Additionally, institutional investors, who are already getting involved in Bitcoin through ETFs and direct investments, may increase their exposure to the cryptocurrency as they see it reaching a new level of maturity and acceptance.

This influx of capital could further push Bitcoin’s price higher, creating a self-reinforcing loop of demand and growth. It also validates Bitcoin’s role as a store of value, much like gold, and could lead to it being seen as an essential asset class in institutional portfolios.

Will $100K Bitcoin Trigger Altcoin Season?

A key question surrounding Bitcoin's price surge is whether it will trigger a full-fledged altcoin season. The answer to this depends on the overall market sentiment, as measured by indicators like the Fear and Greed Index.

Historically, extreme levels of greed in the market, as seen in 2019 and early 2024, have coincided with brief surges in Bitcoin’s price but didn’t lead to a prolonged altcoin rally.

However, if Bitcoin breaks through $100K and the market sentiment continues to show high levels of greed, it could lead to a more sustainable rally, similar to what happened during the late 2021 bull run.

Potential Risks and Challenges

While the outltcoin reaching $100K is generally positive, there are risks that could hinder its progress. A significant short-term correction could occur, especially with the large options expiry of $11.8 billion in December 2024, which could introduce volatility in the market.

Additionally, market speculation and leveraged trading may c fluctuations, even if the longer-term outlook for Bitcoin remains strong.

Another potential challenge is the risk of over-reliance on political or macroeconomic events, such as Trump's victory. While political developments have spurred bullish sentiment, experts like Lorien Gamaroff caution against putting too much faith in any one figure, given their unpredictable nature .

Conclusion

The prospect of Bitcoin hitting $100,000 represents milestone in the evolution of cryptocurrency. If Bitcoin achieves this target, it could serve as a catalyst for renewed interest in the crypto space, triggering higher levels of institutional and retail participation.

The potential for an altcoin season would also grow, as investors seek to capitalize on the broader market rally that could follow Bitcoin’s surge.

The key question now is not whether Bitcoin will hit $100K, but when. While 2024 remains a likely candidate, early 2025 may be another realistic timeline.

Regardless of the exact timing, the fundamental drivers of Bitcoin’s price—institutional investment, political developments, and its increasingly established role as a store of value—suggest that the $100K target is well within reach.

However, short-term volatility and the potential for corrections are inevitable as Bitcoin’s meteoric rise continues. In any case, Bitcoin’s journey to $100K will likely leave a lasting impact on the broader crypto landscape, with far-reaching consequences for the financial world.