On December 5, Bitcoin (BTC) reached an all-time high, surpassing the $100K mark for the first time in history. This milestone sparked excitement among investors and analysts, marking a significant moment for the digital asset industry. Key drivers included shifts in U.S. political dynamics, a surge in institutional investments, and overall improved market sentiment. Let’s delve into the details.
Political and Economic Factors
A major driver of Bitcoin’s rise was political developments. Donald Trump’s election as U.S. President influenced the market, thanks to his pro-crypto statements. Following his victory, Bitcoin experienced immediate growth, consistently breaking new all-time highs (ATHs).
Another contributing factor was the resignation announcement by current SEC Chair Gary Gensler. On November 22, Gensler posted on X that he would step down on January 20, the day of the new president’s inauguration. Yesterday, December 4, Trump announced that Paul Atkinson would be appointed the new SEC Chair. Atkinson’s known pro-crypto stance boosted investor confidence.
Institutional investments also played a critical role. Early in 2024, spot Bitcoin ETFs by major companies such as BlackRock entered the market, attracting institutional investors and further driving price growth.
Current Performance
The overall state of the cryptocurrency market remains optimistic. According to CoinMarketCap, Bitcoin has grown by 49% over the past month. At the time of writing, it is trading at $102.67K.
Thanks to this growth, Bitcoin’s market capitalization temporarily exceeded $2 trillion, ranking it as the 10th-largest global currency and the 7th-largest asset. If its market cap grows by another 5%, Bitcoin will surpass Google and claim the 6th spot. Gold remains the top-ranked asset, with a market cap of $17.931 trillion.
In a recent interview, Federal Reserve Chair Jerome Powell commented that Bitcoin is a speculative and digital competitor to gold rather than the dollar in the race for market capitalization.
Opinions
Some analysts predict Bitcoin could rise to a minimum of $120K by Christmas if current trends persist. Coinbase CEO Brian Armstrong also weighed in on Bitcoin’s growth. According to him, Bitcoin has become the most profitable asset over the past 12 years. He believes every government should build strategic reserves in cryptocurrency to guard against inflation.
“If you had bought $100 worth of Bitcoin when Coinbase was founded in June 2012, it would now be worth around $1.5 million. If you kept $100 in USD, it would only buy $73 worth of goods today due to inflation,” Armstrong noted.
In 2019, known crypto skeptic Peter Schiff boldly declared that Bitcoin would never break the $100K barrier. Former Binance CEO Changpeng Zhao humorously reminded him of this statement amidst the rally. Ironically, Schiff has been promoting his NFT collection during this bullish market.
Now might also be a good time to recall that in 2010, a Florida resident paid 10,000 BTC for two pizzas. Today, that sum exceeds $1 billion.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.
