The mystery of BTC skyrocketing from zero to 100,000: Essential value logic and future trends every crypto trader must know

In December 2024, Bitcoin reached the $100,000 peak for the first time. The story behind this milestone is far more worth exploring than the number itself. From an obscure virtual experiment in 2009 to becoming an unavoidable asset allocation choice worldwide, what has enabled Bitcoin to surge so high? What’s next? These questions trouble everyone paying attention to crypto assets.

Why Is Bitcoin Valuable? A Full Analysis of Four Key Dimensions

Rather than asking “Should Bitcoin have value,” it’s better to understand what it actually does. As long as you see what real-world problems it can solve and what financial functions it can carry, you won’t be led astray by market hype.

From a functional perspective, BTC supports four pillars:

Payment Attribute — Bitcoin is essentially peer-to-peer electronic cash, but due to high volatility, very few people use it for daily consumption. However, in geopolitical turmoil zones like Ukraine and Venezuela, BTC has become a lifeline for escaping local currency devaluation.

Investment Tool — This is Bitcoin’s most profitable identity. In July 2010, Mt.Gox exchange launched, turning BTC from an invaluable item into a tradable commodity. Since then, each halving and bull market has attracted new capital inflows.

Financing Vehicle — Companies and projects can raise funds by issuing crypto assets. The Ethereum ICO in 2014 is a typical example, marking the start of the entire token financing era.

Scarce Asset — Known as “digital gold,” Bitcoin’s total supply is capped at 21 million coins, never to be overissued. This feature has led tech billionaires like Elon Musk and Mark Zuckerberg to start accumulating.

Why Has the Price Risen from Nearly Zero to $100,000? Five Core Drivers

On December 5, 2024, BTC broke through $100,000, then surged to $104,000 within about 90 minutes. As of the latest data, BTC is at $87.93K, still room to reach its all-time high of $126.08K. This isn’t just a speculative frenzy; there are deep economic reasons behind it:

1. The Power of Scarcity Economics

Bitcoin’s most clever design is the absolute cap of 21 million coins. With the halving events every four years, new coin issuance slows down. After the fourth halving in April 2024, the annual new supply drops even further. This artificially created scarcity makes BTC a hedge against global central bank easing policies. When the Fed keeps flooding the market, smart capital flows into BTC.

2. Formal Entry of Wall Street

Over the past five years, institutional investors’ attitude toward BTC shifted from “this is speculative” to “this is a new asset class.” The BlackRock spot Bitcoin ETF attracted over $20 billion in just 137 days. Giants like Fidelity and Ark Invest have launched Bitcoin products. The influx of institutional funds has moved BTC from the fringe to the mainstream, with liquidity and trading depth making a qualitative leap.

3. Geopolitical Hedging Demand

The ongoing Ukraine conflict, rising tensions in the Middle East, and the surge in US debt leading to a decline in dollar creditworthiness—all these factors drive global investors to seek hedging channels outside traditional finance. Bitcoin’s “decentralized” nature demonstrates its unique value at this moment, especially in emerging markets with strong demand.

4. Practical Enhancement from Technical Upgrades

The Taproot upgrade in 2023 added privacy features and smart contract capabilities to Bitcoin. The maturity of the Lightning Network significantly reduced costs for small payments. By 2025, more companies are accepting BTC payments, and some Taiwanese e-commerce platforms have integrated Lightning. Technology is no longer just a concept but actively improving user experience.

5. From Restrictive to Constructive Regulation

El Salvador adopting BTC as legal tender, multiple central banks considering adding crypto to reserves, and most importantly, the US and EU developing clear regulatory frameworks—these “constructive regulations” eliminate compliance uncertainties, which is crucial for institutional entry.

Will BTC Continue to Rise? Forward-looking Analysis in Three Dimensions

Most traders’ top concern boils down to: “Can I still get on the train?” The answer depends on which three perspectives you consider:

Cycle Perspective: Halving Benefits Are Still Unfolding

After the previous three halvings, BTC surged 95x, 30x, and 8x respectively. Although the current halving is completed, based on historical cycles, the price peak is expected around late 2025 to early 2026. Even with a conservative 3–5x increase, target prices are between $150,000 and $300,000.

Capital Perspective: Institutional Allocation Accelerates

By May 2025, CME Bitcoin futures open interest exceeded $17 billion, and options market liquidity has rivaled gold. Japan’s GPIF announced evaluating a 1% asset allocation to crypto, signaling significant institutional interest.

Policy Perspective: Global Regulatory Frameworks Take Shape

The SEC may approve more Bitcoin futures ETFs before 2026. After the EU’s MiCA regulation fully takes effect, trading volume on compliant platforms is rapidly rising, expected to account for one-third of global crypto trading by 2025. Supportive policies are essential for the expansion of stocks and commodities markets, and the same applies to BTC.

Don’t Forget: Three Hidden Risks

While optimism is justified, these risks must not be overlooked:

Quantum Computing Threat — If scalable quantum computers are realized in the future, current elliptic curve cryptography could be cracked. Experts estimate the earliest risk might appear after the late 2030s, but the Bitcoin community is already researching alternatives.

Leverage Liquidation Risk — The BTC market heavily relies on leverage. In March 2025, a single-day crash of over 25% was caused by excessive leverage. Concentrated liquidations can instantly reverse price trends.

Evolving Competition Landscape — After Ethereum’s “Merge 2.0,” it transitioned into a super-deflationary asset with low issuance and burning mechanisms, showing net deflationary characteristics, creating positive competitive pressure against the “digital gold” narrative.

If You Want to Trade Crypto: Investment Mindset Is More Important Than Technique

Under favorable external and internal conditions, BTC’s attractiveness is rising. But before investing, you must answer a core question: Are you aiming for long-term allocation or short-term trading?

This determines your entire strategy framework:

• Over 4 years = Long-term investment (low time cost, fewer trading fees, low threshold)
• 1–3 years = Mid-term investment (requires some market awareness)
• Within 1 year = Short-term trading (requires trading skills and full-time attention)

For beginners, long-term allocation is the highest probability approach. Why? Because you don’t need to predict short-term ups and downs—just patiently wait for the big cycle to play out.

Practical tip: Use the “80/20 rule” for position management. Keep over 80% in long-term holdings, and less than 20% in short-term attempts. Even if all short-term trades lose money, the long-term gains can cover the losses, resulting in overall profit. Most importantly, once you plan, stick to it strictly; otherwise, frequent changes will only cause confusion and emotional swings.

Conclusion

Bitcoin’s rise from zero to $100,000 isn’t a bubble but the result of its scarcity, institutional recognition, and global demand. There’s still room for imagination, but to profit from the BTC wave, rational capital allocation and a long-term mindset are far more valuable than chasing quick gains. Remember: Don’t go all-in on any single asset; diversification is the long-term way.