Bitcoin has reached an unprecedented milestone, hitting $100,000 for the first time on December 5, 2024, following a remarkable 126% surge since the beginning of the year. This historic achievement can be attributed to a combination of factors, including strong demand for Bitcoin ETFs, the effects of the April halving, and Donald Trump’s recent victory in the U.S. presidential election.
The price of Bitcoin reached $102,390, breaking a key psychological barrier just weeks after crossing the $90,000 threshold on November 12. Additionally, Bitcoin set a new all-time high of $104,000 shortly after surpassing the $100,000 mark, according to TradingView.
The increase in Bitcoin’s price has been fueled by over $31 billion in net inflows from spot Bitcoin ETFs in the United States, coupled with a reduced supply following Bitcoin’s fourth halving. Trump’s election has also played a significant role, with speculation regarding a strategic Bitcoin national reserve and a potential shift towards a more favorable regulatory environment for cryptocurrencies.
In the wake of his victory, Trump nominated crypto advocate Paul Atkins to replace Gary Gensler as the chair of the Securities and Exchange Commission, potentially alleviating regulatory obstacles that have hindered the industry. Trump’s appointments of Scott Bessent and Howard Lutnik to key economic positions further suggest a pro-crypto stance in his administration.
Bitcoin’s market capitalization has soared to $2 trillion, marking another significant achievement in its journey. While this year’s rally is impressive, it is not the most explosive in Bitcoin’s history; the cryptocurrency previously surged by 1,900% in 2017.
1. Increased ETF Demand: Over $31 billion has flowed into spot Bitcoin ETFs in the U.S. this year, reflecting growing institutional interest.
2. Halving Impact: Bitcoin’s fourth halving in April significantly tightened supply, a key factor driving price increases.
3. Political Developments: Trump’s election win has spurred speculation about a potential strategic Bitcoin national reserve and increased corporate adoption, particularly from influential firms like MicroStrategy .
4. Regulator nomination of crypto-friendly individuals to key positions, including the SEC chair, could ease regulatory pressures on the industry, further enhancing Bitcoin’s appeal .
Overall, this historic achievemeores Bitcoin’s role as a pivotal asset in the evolving financial landscape.
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