$100k Bitcoin: Is It Time to Buy More, Sell or Hold?

$100k Bitcoin: Is It Time to Buy More, Sell or Hold? Featured Image

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Adil Hussain

Adil Hussain

Content Manager

Bitcoin finally broke the $100k barrier this month, and this isn’t just another headline – it’s a watershed moment. To put this into perspective, Bitcoin, founded 14 years ago in 2009 has grown from being worth nothing to now having a total market capitalization (the value of all the mined bitcoins) of nearly $2 trillion. Let that sink in.

In this article, I’ll go through:

  1. The catalysts behind Bitcoin’s recent price movement
  2. What this means for the future (with expert commentary)
  3. Whether now is the time to buy more or to sell

Why has the price of Bitcoin gone up to $100k?

The surge to $100k isn’t random. 2024 has been a perfect storm, with a few key catalysts: 

1. SEC Approval of Bitcoin ETFs

In January, the SEC approved Bitcoin exchange-traded funds (ETFs), lending institutional legitimacy to Bitcoin. Investment giants like BlackRock, Fidelity, and Grayscale are now managing billions in Bitcoin investments. 

ETFs are a big deal as it makes it easier for investors to gain exposure to Bitcoin without having to use crypto exchanges and it also means that existing stock investors can simply buy Bitcoin ETFs in their stock accounts.

2. Bitcoin Halving Event

In April, Bitcoin’s halving event took place. This event is a fundamental feature of bitcoin where every ~4 years the reward for ‘mining’ Bitcoin halves – this year saw the reward fall from 6.25 to 3.125 Bitcoins. Halvings historically trigger price surges due to reduced supply entering the market.

3. Donald Trump’s election win

During his election campaign, Trump pledged to make the US the “crypto capital” and “Bitcoin superpower” of the world. A key recent move by Trump has been to appoint a more crypto-friendly head for the SEC in Paul Atkins. In classic Trump fashion, he took full credit on his social media.

What does the future hold for Bitcoin?

This year’s events are a big deal and show that Bitcoin and crypto are here to stay and will likely form an integral part of the technological future that lies before us. Don’t just take our word for it, here are what 2 experts have to say:

Michael Saylor

The MicroStrategy CEO has transformed his company into the largest corporate Bitcoin holder globally, with over 402,100 bitcoins acquired at an average price of ~$58,263. This aggressive accumulation strategy has been great for the share price with MicroStrategy’s stock price having surged over 400% in 2024.

With Trump winning the election, Saylor believes Bitcoin is poised to accelerate institutional adoption: “This suggests an acceleration of institutional adoption. It’s a signal that it’s okay for insurance companies to think about insuring Bitcoin companies. It’s a signal that it’s okay for banks to bank Bitcoin and crypto companies.”

Cathie Wood

The founder of asset management giant Ark Invest who has backed Bitcoin since 2015 when it was valued at $250 (BTC is now worth 400x that) spoke recently on how big Bitcoin could become. Here are 3 key points from her remarks:

  1. In addition to being perceived as the next reserve currency, Bitcoin is a substitute for gold, a 15 trillion dollar asset. 
  2. Bitcoin is a new asset class which all fiduciaries need to look to include with the potential to become between 2-6% of portfolios
  3. Bitcoin is an “insurance policy” in emerging markets for populations who are used to corruption, collapses in currencies, and outright confiscation of wealth or capital controls.

In the UK we can see this institutional adoption playing out in our eyes just last month where pension specialists Cartwright have advised an unnamed pension fund to invest 3% of its portfolio into Bitcoin. It’s clear to us that this is the time for Bitcoin to go mainstream.

Is now the time to buy or sell Bitcoin?

With all that said this is what we think you should be thinking about now:

For existing crypto investors

For those who have already invested in bitcoin, if you’re looking to realise some profits, our recommendation is to take small exits and start scaling out slowly. Timing the market is almost impossible but what you can do is start taking small profits and with every big jump take more and leave an amount that you are comfortable holding for the long term.

For new crypto investors

For people who haven’t invested in bitcoin or any other crypto, we would suggest now is still a decent time to take a small position with a view to scaling your position upwards on any big dips and/or just dollar cost averaging over the next few years. 

Final words

Lastly, a word of warning: be careful about becoming “exit liquidity”. Exit liquidity is where newcomers and less sophisticated investors unknowingly provide profitable selling opportunities for more experienced traders by buying at inflated prices. Bitcoin has been on a multi-year run from lows of $20k to highs of $100k. At some point, the smart money will sell to realise their gains and wait for the next good opportunity to buy. So avoid rushing in and don’t be afraid to play the long game.

For more on crypto, check out our detailed guides here. If you want to be first to receive our latest halal money insights, you can subscribe via the link below.

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Adil is an Islamic Finance Writer and a Data Scientist with a background in Islamic Finance and Financial Services. He is currently the Content Manager and Economic Editor for IslamicFinanceGuru. He holds a BSc in Mathematics and an MSc in Data Science and Analytics from the University of Leeds. He holds a Diploma in Islamic Finance and is passionate about increasing financial literacy among Muslims. Adil is an Islamic Finance Writer and a Data Scientist with a background in Islamic Finance and Financial Services. He is currently the Content Manager and Economic Editor for IslamicFinanceGuru. He holds a BSc in Mathematics and an MSc in…

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