Bitcoin crosses the $100,000 level: a historic milestone
In January 2025, Bitcoin (BTC) crossed the $100,000 level for the first time in history after an impressive uptrend. This stepping stone, which was considered by many to be a dream just a few years ago, has become a reality and has changed the perception of the public and institutions regarding the digital asset.
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Bitcoin’s rise to this level was no accident. The April 2024 halving, where the mining reward was cut from 6.25 BTC to 3.125 BTC, created constant pressure on supply. At the same time, the approval of Bitcoin ETFs in January 2024 opened the door to a huge influx of institutional money.
Effect of the ETF
The spot ETFs of BlackRock, Fidelity and others attracted billions of dollars in the first months after their launch. In 2024 alone, flows of over $30 billion were recorded for these funds. Institutional investors who avoided investing directly in Bitcoin due to regulatory concerns could now be exposed to the asset through a regulated and recognized financial product.
The market reaction
When Bitcoin crossed $100,000, the rest of the crypto market also saw a sharp rise. Ethereum, Solana and other cryptocurrencies rose by tens of percent. Trading volumes in the stock exchanges reached new highs, with billions of dollars of transactions within 24 hours.
What do the experts say?
Senior investment managers from organizations such as JP Morgan and Goldman Sachs came back and updated their price targets upwards. The Stock-to-Flow Model, a popular Bitcoin price forecasting model, pointed to even higher targets. On the other hand, some economists warned against a speculative bubble.
Effects on the Israeli crypto market
Also in Israel, public interest in crypto is proud again. The tax authorities clarified the taxation guidelines, and the Israeli crypto exchanges reported a significant increase in new registrations. It is advisable to review our purchase guide before entering the market.
Ultimately, crossing $100,000 was more than a number – it represented widespread recognition of Bitcoin as a legitimate asset class, alongside gold and government bonds, in the portfolios of the world’s largest financial institutions.
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