Bitcoin’s Ascent: The $100,000 Threshold Approaches

The world’s leading cryptocurrency is on the verge of a historic breakthrough. Surging past $99,000, Bitcoin is rapidly closing in on the psychologically significant $100,000 level—a price point many considered unattainable just months ago. Yet, beneath the market’s euphoria, cautionary signals are emerging. While institutional capital floods in, the Bitcoin network itself is displaying surprising signs of weakness. Can the rally sustain its momentum, or is a significant correction imminent?

Regulatory Shifts and Political Influence

The outcome of the U.S. presidential election on November 5 has injected fresh optimism into the cryptocurrency sector. Donald Trump’s victory, coupled with his campaign rhetoric about establishing a strategic national Bitcoin reserve akin to the country’s gold holdings, has electrified the community. Although specific policy details remain undefined, the mere prospect of such discussions is expected to attract further institutional interest.

The changing political landscape is also influencing traditional skeptics. Neel Kashkari of the Federal Reserve, previously a vocal critic of digital assets, has now expressed a willingness to approach the subject with an “open mind.” With Republican control of both congressional chambers, the path appears clearer for substantive crypto legislation to potentially become law.

Institutional Demand Fuels the Rally

The primary engine behind Bitcoin’s recent price explosion is unequivocally institutional investment. Since the election, approximately $4 billion has poured into Bitcoin ETFs. This substantial inflow represents about 15% of all capital these funds have attracted since their inception in January. In one week alone, these products recorded inflows of $4.7 billion.

These massive capital movements signal a fundamental shift: Bitcoin is transitioning from a speculative novelty to a legitimate portfolio component for major institutions. Companies like Tesla now hold Bitcoin reserves valued in the billions. Furthermore, the robust ETF demand is effectively absorbing selling pressure from long-term holders, creating a form of price support during volatile market periods.

A notable characteristic of this rally is its foundation in spot market purchases rather than leveraged futures trading. This pattern suggests the price increase is driven by genuine asset acquisition, not mere speculation, potentially creating a healthier foundation for sustained price appreciation.

Should investors sell immediately? Or is it worth buying Bitcoin?

Network Activity Tells a Different Story

Paradoxically, as the price targets new peaks, underlying network metrics reveal significant weakness. The number of daily transactions has plummeted. The seven-day average now sits at just 330,000 transactions—a dramatic 55% decline from the historical peak of 730,000.

Transaction fees have also dwindled, falling to approximately $500,000 per month. Protocols like Runes and Ordinals, which initially generated considerable excitement, now account for a mere 1% of all Bitcoin transactions. This trend raises a critical question: Is Bitcoin’s primary role evolving into “digital gold” for value storage, while its utility as a medium for everyday transactions diminishes?

Simultaneously, Bitcoin miners have transferred roughly 25,000 BTC, worth approximately $2.2 billion, from their wallets in recent days. This activity is often interpreted as a signal of profit-taking and potential preparation for anticipated market turbulence.

Analyzing the Path Forward

The total cryptocurrency market capitalization has surpassed $3.2 trillion for the first time since 2021, with Bitcoin leading the charge and commanding a market dominance of nearly 60%. Analysts from firms like Bitget and Bitfinex project that Bitcoin could reach the $100,000 mark within November.

However, investors should remain cautious. High volatility persists, as evidenced by a recent trading session where Bitcoin’s price swung between $86,600 and $91,700. The declining network activity prompts legitimate concerns about long-term sustainability, especially as future “halving” events will continue to reduce the block rewards granted to miners.

Bitcoin appears to be solidifying its identity as a store of value, while its original vision as a peer-to-peer electronic cash system recedes. Whether this transformation provides enough fundamental strength to propel the rally beyond $100,000 will be determined in the coming weeks.