Bitcoin Surges Past $100,000 Marking Historic Milestone
Bitcoin has achieved a monumental feat, surpassing the $100,000 mark for the first time in its history. This unprecedented rally has been fueled by a combination of factors, including the growing demand for Bitcoin ETFs, the halving event in April, and the recent U.S. presidential election victory of Donald Trump.
The cryptocurrency reached the $100,000 threshold on December 5, just weeks after hitting the $90,000 milestone on November 12. Bitcoin briefly touched $104,000 before stabilizing, marking a new all-time high. This surge represents a 126% increase since January, when Bitcoin was trading at around $44,000.
The year 2024 has seen significant net inflows into spot Bitcoin exchange-traded funds (ETFs) in the United States, totaling over $31 billion. This influx, coupled with the supply constraints from Bitcoin’s fourth halving in April, has contributed to the cryptocurrency’s meteoric rise. Additionally, Trump’s victory and his pro-crypto stance, have bolstered market sentiment.
Trump’s appointments, including hedge fund manager Scott Bessent and Cantor Fitzgerald CEO Howard Lutnik to key cabinet positions, signal a pro-crypto administration. This shift is expected to remove regulatory hurdles that have hampered the industry under the Biden administration.
Institutional and corporate interest has also played a pivotal role in Bitcoin’s price momentum. MicroStrategy, led by Michael Saylor, has been a significant player in institutional adoption, holding over 402,100 BTC valued at approximately $40.5 billion. Other corporations, such as Acurx Pharmaceuticals, have followed suit, adding Bitcoin to their reserves.
The surge in Bitcoin’s value has been accompanied by a record-breaking $6.1 billion in inflows to spot Bitcoin ETFs in November, with BlackRock’s IBIT fund receiving $5.4 billion. This influx underscores the growing acceptance of Bitcoin as a major asset class and a store of value.
Analysts and industry experts have weighed in on the milestone, with many attributing the rise to expectations of a crypto-friendly regulatory environment under Trump. Ryan Lee, chief analyst at Bitget Research, noted that Bitcoin’s next potential resistance levels could be $150,000 and even $200,000 by the end of 2025. Bernstein analysts echoed this sentiment, highlighting the positive impact of Trump’s regulatory direction.
Trump himself congratulated Bitcoin enthusiasts on the milestone, taking some credit for the price rise. “CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!! Together, we will Make America Great Again,” he posted on Truth Social.
The rally has also been influenced by Bitcoin’s fourth halving event, the Federal Reserve’s economic policies, and Fed Chair Jerome Powell’s comments comparing Bitcoin to gold. These factors, along with institutional flows and corporate adoption, have driven Bitcoin’s price to new heights.
While the milestone is celebrated, some experts caution about the volatility and speculative nature of the cryptocurrency. Nigel Green, CEO of deVere Group, warned of potential sell-offs as investors lock in profits, but he remains bullish on Bitcoin’s long-term prospects.
Coinbase CEO Brian Armstrong reflected on Bitcoin’s phenomenal growth, noting that an investment of $100 in Bitcoin when Coinbase was founded would now be worth about $1.5 million. Galaxy CEO Mike Novogratz and Tron founder Justin Sun also celebrated the milestone, highlighting Bitcoin’s journey and its potential for future growth.
