Bitcoin ($BTC) has reached a historic milestone, crossing the $100,000 mark for the first time.
On 5 December, the world’s largest cryptocurrency broke this significant price level, just weeks after hitting $90,000 on 12 November, according to data from TradingView.
Not long after surpassing $100,000, Bitcoin climbed even higher to set a new record at $104,000 around 3:08 am UTC.
This jump reflected the growing strength of Bitcoin in the market, with its total value—or market capitalisation—hitting $2 trillion for the first time.
Several factors have driven this massive growth. These include strong demand for Bitcoin exchange-traded funds (ETFs), important regulatory developments, and a limited supply caused by Bitcoin’s latest halving in April.
“This milestone will make headlines everywhere”, said Anthony Pompliano, a well-known Bitcoin advocate.
“Every boomer will wake up tomorrow reading the headlines in the newspapers and will buy Bitcoin, in case they were wrong. Welcome to the next phase of the game”, added Pompliano.
Why is Bitcoin’s price rising?
A key factor behind Bitcoins surge is the success of spot Bitcoin ETFs in the United States. These financial products allow investors to buy Bitcoin without directly owning it, making the process easier and safer for many.
So far this year, spot Bitcoin ETFs have seen over $31 billion in net investments. November alone set a record, with $6.1 billion flowing into these funds.
BlackRock’s iShares Bitcoin Trust (IBIT) has been a standout performer, with over $50 billion in assets under management. This shows growing trust in Bitcoin among institutional investors.
Regulatory changes have also played a role. President-elect Donald Trump has announced plans to appoint Paul Atkins, a known supporter of cryptocurrencies, as the next chair of the Securities and Exchange Commission (SEC).
This could remove some of the barriers that have previously slowed down the growth of the cryptocurrency industry.
In addition, Trump has also nominated other pro-crypto figures for key government positions. Hedge fund manager Scott Bessent is his pick for Treasury Secretary, while Cantor Fitzgerald CEO, Howard Lutnick, has been chosen for Secretary of Commerce.
These appointments suggest a more cryptocurrency-friendly approach in the United States going forward.
Companies are betting big
Bitcoin’s rise has also been supported by companies adding it to their balance sheets. MicroStrategy, the largest corporate holder of Bitcoin, recently purchased another 15,400 $BTC for $1.5 billion.
The company now owns a staggering 402,100 $BTC, worth about $40.5 billion.
“This is part of our strategy to make Bitcoin a core part of our treasury”, said Michael Saylor, MicroStrategy’s chairman.
Other companies are following this trend. Acurx Pharmaceuticals, a Nasdaq-listed biopharmaceutical firm, announced that it plans to invest up to $1 million in Bitcoin as part of its cash reserves.
The company’s CEO, David P. Luci, called the move a smart financial decision, noting Bitcoin’s limited supply and ability to hold its value over time.
“As demand for Bitcoin grows, we believe it will serve as a reliable store of value for cash we don’t need in the short term”, Luci said.
What’s next for Bitcoin?
Bitcoin’s rise has been accompanied by a spike in trading activity. Over $125 billion worth of Bitcoin was traded recently, far exceeding normal levels.
The “Coinbase premium”, which measures how much higher Bitcoin’s price is on Coinbase compared to other platforms, indicates strong demand from US investors.
Market analysts believe this rally might not be over. A well-known cryptocurrency analyst, Miles Deutscher, predicts Bitcoin’s price could stabilise between $100,000 and $105,000 before climbing further, potentially reaching $120,000 soon.
Bitcoin has grown 126% since the beginning of 2024, when it was priced at $44,000. While this is impressive, it isn’t Bitcoin’s most dramatic rise.
In 2017, its value surged by 1,900%, and during the COVID-19 pandemic in 2020, it increased by 1,250%.
Despite its ups and downs, Bitcoin continues to gain acceptance as a legitimate investment option.
With growing interest from both companies and individual investors, along with a more supportive regulatory environment, Bitcoin’s future looks brighter than ever.
