Bitcoin Recrosses the $100,000 Mark as Ethereum Follows with a 4% Rise

Bitcoin has crossed the $100,000 mark again. Ethereum followed with a 4% rise, though it remains shy of the critical $4,000 resistance level.

Bitcoin price crossed the $100,000 mark again on Friday, heating up the crypto market.

Bitcoin rose 2% over the past 24 hours to reach $103,844, continuing its recent rally. The cryptocurrency is now trading above the critical $100,000 resistance level.

On the other hand, Ethereum price increased by 4% and is currently trading at $3,908. However, it remains shy of the crucial $4,000 resistance level.

Crypto-linked stocks also received a boost. Coinbase shares went up 4%, while MicroStrategy shares surged 8%. This resilience is notable considering most crypto-related stocks are in the red for the week.

The rally comes ahead of the Federal Reserve’s December meeting, where high expectations exist for another interest rate cut.

The latest inflation data from the U.S. showed a modest 0.3% increase in the November consumer price index report from October and a 2.7% jump year-over-year. This data matched forecasts, calmly DEng fears of higher-than-expected inflation.

The modest consumer price index reading clears the way for the Fed to cut interest rates at its next meeting, potentially setting the stage for further gains in the crypto market.

Bitcoin's rise also comes against the backdrop of Standard Chartered analyst Geoff Kendrick's prediction that Bitcoin could hit $200,000 by the end of 2025.

"This is not a moonshot. With continued institutional adoption and even modest growth in sovereign wealth fund interest, this target is realistic," Kendrick said in a note.

He highlighted the role of U.S. retirement funds and the possibility of a U.S. strategic reserve fund embracing Bitcoin as a potential game-changer.

Moreover, MicroStrategy's aggressive buying strategy is a factor. The company is ahead of schedule on its $42 billion, three-year plan, and Kendrick expects 2025 purchases to outpace those in 2024.

According to Bernstein's latest note, Bitcoin is set to replace gold as the preferred store of value within the next decade.

Gautam Chhugani, a Bernstein analyst, stated in his Friday morning note that "Bitcoin is well on its way to becoming a standard asset in institutional portfolios and corporate treasuries."

Bernstein predicts Bitcoin will reach $200,000 by late 2025 as it integrates into the fabric of the financial system, replacing gold despite its high price.

However, Fundstrat's Tom Lee remains even more bullish, forecasting a price of $250,000 for Bitcoin in 2025.

Bitcoin's current record high, reached earlier this week, stands at $103,844, a figure many believe will be surpassed sooner rather than later as it trades above the $100,000 mark.

Despite the short-term volatility expected around the $100,000 level, long-term projections point to substantial growth.

It is important to note that Bitcoin is still far from being widely accepted as a medium of exchange or unit of account, and skeptics argue it needs more time to prove its stability.