The price of bitcoin soared past $100,000 for the first time in history on Wednesday night, reaching a record high in early Thursday trading. This milestone marks a significant moment in the evolution of digital assets and raises a pressing question for investors: Is it too late to buy bitcoin now that it’s hit six figures?
The surge in value follows a broader market rally fueled by shifting political sentiment, regulatory optimism, and macroeconomic trends. While some investors may feel they’ve missed the boat, financial analysts suggest the story isn’t over — and there are still compelling reasons to consider entering the market.
What’s Driving Bitcoin’s Record-Breaking Rally?
Bitcoin’s climb has been accelerated by several key factors:
- Pro-crypto political leadership: Former President Donald Trump, who has positioned himself as a supporter of cryptocurrency, won the 2024 election. His administration has signaled plans to ease regulatory pressure on the crypto industry.
- Federal Reserve rate cuts: With inflation cooling, the Fed has begun cutting interest rates, making riskier assets like bitcoin more attractive compared to traditional fixed-income investments.
- Bitcoin ETF approval: In January 2025, U.S. regulators approved spot bitcoin exchange-traded funds (ETFs), giving mainstream investors easier, regulated access to bitcoin without needing to manage private keys or wallets.
👉 Discover how market momentum could push bitcoin even higher in 2025.
Since Election Day, bitcoin has surged nearly 50%, far outpacing the S&P 500, which rose only about 5% during the same period. This dramatic outperformance has drawn renewed attention from both retail and institutional investors.
Trump himself took credit for the rally in a post on Truth Social: “CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU'RE WELCOME!!!.” While tongue-in-cheek, the message underscores a growing alignment between U.S. policy and digital asset growth.
Regulatory Shifts That Could Shape Bitcoin’s Future
One of the most significant developments came with Trump’s nomination of Paul Atkins as chair of the Securities and Exchange Commission (SEC). Atkins, CEO of Patomak Partners and co-chair of the Token Alliance — a major crypto advocacy group — is seen as a friendlier regulator compared to his predecessors.
This shift could lead to:
- Faster approvals for crypto-related financial products
- Clearer regulatory frameworks for digital assets
- Reduced enforcement actions against compliant crypto firms
Additionally, Trump has pledged to create a National Strategic Bitcoin Reserve, which would involve the federal government holding bitcoin on its balance sheet — a move that could further legitimize the asset class and boost long-term demand.
Why Bitcoin ETFs Are Changing the Game
The introduction of bitcoin ETFs in early 2025 was a watershed moment. These funds allow investors to gain exposure to bitcoin through traditional brokerage accounts, eliminating many of the technical and security hurdles associated with owning cryptocurrency directly.
Benefits include:
- Simplified tax reporting
- Integration with retirement accounts (e.g., IRAs)
- Greater investor confidence due to third-party oversight
Analysts believe ETF inflows will continue to drive demand, especially as more financial advisors begin recommending them as part of diversified portfolios.
Bret Kenwell, U.S. investment analyst at eToro, noted that while volatility remains a concern, the structural support for bitcoin is stronger than ever.
“Those same catalysts have the longer-term picture still looking bright for bitcoin,” Kenwell said.
Bitcoin’s Volatility: A Double-Edged Sword
Despite the optimism, experts caution that bitcoin is not a stable investment. Its price is highly sensitive to sentiment, regulation, and macroeconomic shifts.
For example:
- In 2021, bitcoin lost more than half its value within months.
- Early in the pandemic, it dropped nearly 50% in a matter of days.
- Even in 2025, it briefly shed one-third of its value during a correction before rebounding.
Steve Sosnick, chief strategist at Interactive Brokers, points out that unlike stocks, bitcoin lacks intrinsic value tied to earnings or cash flow.
“Bitcoin isn’t really used in the real world,” Sosnick said. “It’s foolish to say that any number – whether it’s $75,000 or $100,000 or anything – is the end of the rise.”
Instead, its value is largely speculative — driven by adoption expectations, scarcity (with only 21 million coins ever to be mined), and investor psychology.
Frequently Asked Questions (FAQ)
Q: Is $100,000 the peak for bitcoin?
A: No one can say for sure. While some analysts predict prices could reach $150,000 or more in 2025, others warn of sharp pullbacks. The market remains highly unpredictable.
Q: Can I still make money buying bitcoin now?
A: Yes — but with caution. Long-term holders have historically benefited despite short-term swings. Dollar-cost averaging (investing fixed amounts regularly) can reduce risk.
Q: What makes bitcoin different from other investments?
A: Unlike stocks or bonds, bitcoin isn’t tied to company performance or interest rates. It functions more like digital gold — a decentralized store of value outside traditional financial systems.
Q: How do interest rate cuts affect bitcoin?
A: Lower rates reduce returns on savings and bonds, pushing investors toward higher-risk assets like crypto. This “search for yield” often benefits bitcoin.
Q: Should I invest all my money in bitcoin?
A: Absolutely not. Most financial advisors recommend allocating only a small portion — typically 1% to 5% — of a portfolio to cryptocurrencies due to their volatility.
Q: Are governments likely to ban bitcoin?
A: Unlikely in pro-crypto jurisdictions like the U.S. under current leadership. In fact, policies now favor innovation and strategic adoption rather than prohibition.
Core Keywords Driving Market Sentiment
The following keywords reflect central themes shaping investor decisions in 2025:
- Bitcoin price prediction
- Bitcoin ETF 2025
- Cryptocurrency investment
- Bitcoin volatility
- Federal Reserve rate cuts
- Digital asset regulation
- National Strategic Bitcoin Reserve
- Paul Atkins SEC
These terms frequently appear in search queries from users trying to understand whether now is a smart time to invest — indicating strong ongoing interest and information demand.
👉 See how expert insights could help you time your next move in the crypto market.
Final Thoughts: Timing vs. Long-Term Perspective
While $100,000 may seem like a daunting entry point, history shows that timing the market perfectly is nearly impossible. Many investors who waited for a “better price” missed out on major gains in previous cycles.
Instead of focusing solely on price, consider these questions:
- Do you believe in the long-term potential of decentralized digital money?
- Are you prepared for significant price swings?
- Does bitcoin fit into your overall risk tolerance and investment strategy?
Mark Hamrick, senior economic analyst at Bankrate.com, puts it simply:
“Bitcoin clearly has some things going in its favor… The problem with bitcoin is that it’s unclear what drives the underlying fundamentals of the asset.”
In other words, while fundamentals are hard to pin down, momentum and sentiment are powerful forces — and right now, they’re aligned upward.
👉 Learn what experts say about the next phase of bitcoin’s price journey.
Conclusion
Reaching $100,000 is a psychological and financial milestone — but it doesn’t mean the opportunity is gone. With favorable regulation on the horizon, continued institutional adoption via ETFs, and macroeconomic tailwinds from rate cuts, bitcoin may still have room to grow.
That said, volatility remains a constant. Investors should proceed with eyes open, using strategies like dollar-cost averaging and portfolio diversification to manage risk.
Whether you're a first-time buyer or a seasoned holder, one thing is clear: bitcoin is no longer on the fringes — it’s part of the financial mainstream.