Boom! Bitcoin Breaks $100K

The Crypto King, Trump, and the Road Ahead

Well, it finally happened. Bitcoin (BTC) has just smashed through the $100,000 barrier. This literally happened just hours ago.

It feels good to be proven right. In March 2024, I wrote an essay titled "No, Bitcoin Won’t Stop at $69K." And guess what? It didn’t.

Now, it wasn’t a straight line up, though. We saw plenty of volatility, with Bitcoin rising to new highs and then crashing 20-30% or more. But never once did I doubt my words.

This is, without question, a huge historical milestone for the world’s first cryptocurrency. It also puts Bitcoin up nearly 130% from about $44,000 a coin just a year ago.

But I'd be remiss not to point out that Doug Casey’s call to “buy some” Bitcoin when it was at $10,700, mentioned in a podcast four years ago, would have given you an 835% gain.

Give yourself a pat on the back if you took his advice. After all, you could have listened to someone like Peter Schiff, who's been “calling,” talking, and tweeting things like this for what feels like an eternity.

Now, unless you're Mr. Schiff, you didn’t really have to be a finance whiz to see why Bitcoin was likely going to do very well this year.

We had Bitcoin’s physical ETFs approval in January, which opened the floodgates for billions in institutional capital to flow into Bitcoin. We also saw the fourth Bitcoin halving in April 2024, which cut the block reward in half to 3.125 BTC (further restricting the supply of new coins).

So, yeah, expecting Bitcoin to go higher after $69K wasn’t exactly rocket science. What I didn’t see coming, though, was Trump embracing crypto (and going on to win the presidency).

The Trump Factor

Trump's election definitely played a huge role in Bitcoin reaching these price levels. He was the first candidate to really go after the "crypto vote." At the Bitcoin Conference in Nashville earlier this year, he even promised a national Bitcoin stockpile, saying "If crypto is the future, I want it made in the USA." The crypto crowd went wild.

Trump's pro-Bitcoin talk was a total 180 from previous administrations. Under Biden, cryptocurrencies were treated like some criminal enterprises, especially by SEC Chair Gary Gensler. Gensler went after crypto hard, cracking down on stablecoins and exchanges. Crypto industry was desperate for a friendlier SEC.

So when Trump won and Gensler announced he was stepping down just weeks ago, it was met with cheers from the crypto community. And hours ago, Trump nominated Paul Atkins, a pro-crypto guy, to run the SEC. That's what finally pushed Bitcoin over $100K. And, naturally, Trump was quick to remind Bitcoiners of that.

Now, I won’t lie—it’s a bit ironic seeing the crypto community embrace government involvement, since Bitcoin was supposed to be this libertarian, anti-government thing. You can bet that the thought of a national Bitcoin reserve or anything like that wouldn’t sit well with Bitcoin’s early adopters. But, hey, money makes strange bedfellows, and most people figure a Bitcoin-friendly government is good for business.

That said, basing your investment on what politicians might or might not do is just not a smart move. If you’re in or about to get into Bitcoin for that reason, I’d rethink it.

The truth is, of all Trump’s campaign promises, the Bitcoin reserve seems like the easiest one to break. It would take a lot of political capital that he’ll need for other things, and if it doesn’t happen, he can always blame Congress.

In the end, the crypto-politics saga is definitely worth watching… especially if you’re more short-term focused. But ultimately, Bitcoin’s scarcity will be the real driver.

What’s Next?

I hate to sound like a broken record—though it’s probably better to do that when you’re right than when you’re wrong—but Bitcoin won’t stop at $100K. Sure, we’ll probably see the usual 20% to 30% pullbacks along the way, maybe even more, but it will bounce back. And eventually, $100K will be a distant memory.

Now, I opened this piece by describing Bitcoin’s rise to $100K as a monumental historical milestone, and it truly is—not just for what’s been achieved, but for all the gains that lie ahead.

The thing is, hitting six figures is a major psychological milestone. Bitcoin at $100K is going to grab the attention of every mainstream media outlet. Expect it to be splashed across news sites everywhere. Your friends, your family, your coworkers—they’re all going to be talking about Bitcoin.

With all this buzz, we’re about to see a flood of new investors jumping in. Retail FOMO (fear of missing out) will be in full swing. And because there will only ever be 21 million Bitcoin, that demand surge will push prices even higher.

Source: X

Naturally, soon after, some of these newcomers, in for their first ride, will panic and sell off at the first sign of serious volatility. After all, weak hands are weak hands for a reason. But that won’t change the overall direction. It’s still up, up, and up...

You also have to consider the macro environment, which couldn’t be more favorable for Bitcoin. Risk assets are back in vogue, and the Fed has already cut rates twice this year. We all know what that means: cheap money is rocket fuel for Bitcoin.

Historically, every time the Fed eased, Bitcoin went on a tear.

Back in early 2019, for instance, when the central bank paused its rate hikes, Bitcoin surged over 300% by June 2019. Then, during the 2020 pandemic, the Fed slashed rates to near zero—and Bitcoin soared again.

And with Trump 2.0 in the picture, we should expect the same.

So, yeah, $100K is just the beginning. It’s the first stop on Bitcoin’s journey to becoming a multi-trillion-dollar asset. I wouldn’t be shocked to see Bitcoin reach $200K, $500K, or even $1M in the next few years. Guys like Peter Schiff can keep shouting from the sidelines, but Bitcoin’s track record seems like a better bet to me.

Regards,

Lau Vegys

P.S. Bitcoin’s price can be a wild ride. So, if you’re thinking about speculating, don’t dive in headfirst. Instead, consider putting in a fixed amount regularly—just make sure it’s never so much that it keeps you up at night.