Bitcoin has surged to record-breaking levels, hitting an all-time high of $103,679 on Dec. 5, amid growing optimism fueled by institutional demand and the pro-crypto sentiment of President-elect Donald Trump’s administration.
Yet billionaire investor Mark Cuban believes the industry’s best days are still ahead.
Cuban told The Street Roundtable that Bitcoin’s rally is “purely supply and demand driven” but emphasized that the cryptocurrency market has yet to achieve its “Instagram moment.”
“The [crypto] industry is still waiting for a transitional app that brings crypto applications to the mainstream,” Cuban said. “Crypto has not had its own ‘Instagram moment’ yet, equal to Instagram driving adoption of smartphones and the App Store.”
Still, Cuban remains bullish on Bitcoin’s potential.
“That won’t keep Bitcoin from reaching all-time highs,” he added. “There is too much demand from institutions and young buyers.”
Institutional and Retail Demand Driving the Rally
On-chain data shows strong buying activity among both institutional and retail investors.
CryptoQuant’s Coinbase Premium Index, which measures the price difference between Bitcoin on Coinbase and Binance, currently stands at 0.16 — a signal of robust demand from the U.S.-based investors.
A pseudonymous CryptoQuant analyst, Darkfost, explained that retail investor demand has surged, reaching levels unseen since 2020.
“The 30-day demand change from retail investors has just reached its highest level since 2020,” Darkfost said. “This surge in retail interest may partly explain the strong ongoing demand, even as long-term holders begin to take profits.”
The analyst explained that while increased interest from retail investors often indicates the market is nearing a short-term peak, the combination of both retail and institutional demand could help maintain the ongoing rally.
Bitcoin Longs Suffer
Bitcoin’s sharp price movements have led to significant liquidations in the derivatives market. In the past 24 hours, over 175,000 traders were liquidated , amounting to $912.62 million in total liquidations.
The largest single liquidation order occurred on crypto exchange OKX, with a BTC-USDT swap valued at $18.94 million. Bitcoin accounted for more than half of these liquidations, with $500 million liquidated, including $427 million in long positions — future trades betting that Bitcoin's price would rise.
Bitcoin is currently trading at $99,000, down 4% from its all-time high reached on Thursday.
Experts Weigh In
Matt Mena, crypto research strategist at 21Shares, a provider of cryptocurrency exchange-traded products (ETPs) attributed Bitcoin’s growth to a confluence of events, including the election of a pro-crypto administration and the appointment of Paul Atkins as the new SEC chair.
“Bitcoin has made unbelievable strides this year,” Mena wrote in a note shared with The Street Roundtable. “Amid the launch of the spot Bitcoin ETFs, election of a pro-crypto administration – and specifically Trump’s recent appointment of Paul Atkins as SEC chair – proposals for crypto-friendly legislation, and accelerated growth in the crypto ecosystem, BTC has more than doubled — all in a span of 10 months.”
Mena also noted the psychological impact of Bitcoin crossing the $100K mark.
“This milestone is likely to attract a new wave of investors,” he explained. “Many who had been sitting on the sidelines watching Bitcoin's ascent are now re-engaging with digital assets, spurred by this historic breakthrough.”