Bitcoin price has reached a historic milestone, crossing $100k for the first time. This rise is due to a few key factors: the success of spot Bitcoin ETFs, large investments from companies like MicroStrategy and Donald Trump’s crypto-friendly presidency.
Bitcoin Price Cross $100K: A Record-Breaking Achievement
On December 5, 2024, Bitcoin price surpassed $100,000, marking a new chapter in its 15-year journey. It later climbed to a record high of $103,000. This surge has propelled Bitcoin’s market capitalization to nearly $2 trillion, placing it among some of the world’s most valuable assets.
For comparison, major tech companies like Amazon and Google are valued at $2.2 trillion, with Apple leading at $3.5 trillion. Gold, a traditional store of value, is worth around $17.7 trillion globally. Bitcoin’s rise to nearly $2 trillion shows it is becoming a major force in global finance.
What’s Driving Bitcoin’s $100K Milestone?
The Success of Spot Bitcoin ETFs
A big reason for Bitcoin’s rise is the launch of spot Bitcoin ETFs in early 2024. Top financial companies like BlackRock and Fidelity introduced these ETFs, and they quickly became popular with both large institutions and everyday investors.
In less than a year, these ETFs have collected $30 billion in investments. Unlike futures-based ETFs, spot ETFs give investors direct exposure to Bitcoin’s price, making them a more appealing choice.
The overwhelming success of these ETFs has brought Bitcoin into the portfolios of mainstream investors, boosting demand and driving its price higher.
Corporate Adoption of Bitcoin
Another important reason for Bitcoin’s rise is the increasing number of companies adopting it. One of the leaders in this trend is MicroStrategy, a U.S. business intelligence company run by Michael Saylor.
MicroStrategy began accumulating Bitcoin in 2020 and now holds 386,700 tokens, valued at over $38 billion. MicroStrategy’s strategy has encouraged other publicly traded companies, like Semler Scientific and Japan’s Metaplanet, to do the same.
Even Microsoft is thinking about holding Bitcoin as part of its treasury, showing more confidence in the cryptocurrency. This growing adoption has decreased the supply of Bitcoin, which is helping push its price up.
Optimism Around Trump’s Presidency
Donald Trump won the 2024 US election. This helped raise the Bitcoin price. Trump supports cryptocurrencies. He picked many crypto-friendly people for important government roles. For example, Trump picked Paul Atkins, a crypto supporter, to replace Gary Gensler as the head of the SEC. This change should loosen the rules that have limited the cryptocurrency industry.
Additionally, Trump’s administration is rumored to be exploring a national Bitcoin reserve, which could further legitimize the asset and drive global adoption.
A Year of Explosive Growth
Bitcoin’s journey to $100K is part of a broader trend in 2024. Starting the year at $44,000, the cryptocurrency has gained 130%.
The rally gained momentum in March when Bitcoin reached $73,500. However, uncertainty around the U.S. presidential election caused the market to slow down for a while. After Trump’s win in November, the rally picked up again, pushing Bitcoin past $80,000, $90,000, and finally $100,000.
The Bigger Picture: Bitcoin vs. Traditional Assets
Bitcoin’s rapid ascent has drawn comparisons with traditional financial assets. While it still lags behind tech giants like Apple and Gold in market value, its growth trajectory is unmatched.
Gold: Often seen as Bitcoin’s traditional competitor, gold’s total market value stands at $17.7 trillion.
Big tech companies like Apple ($3.5 trillion), Microsoft ($3 trillion), and Google ($2.2 trillion) lead global markets.
Bitcoin’s ability to attract both institutional and retail investors positions it as a serious contender in the world of high-value assets.
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Conclusion:
Bitcoin price reaching $100,000 is a major milestone that highlights its increasing impact on the financial world. Thanks to spot ETFs, more companies using Bitcoin, and a supportive political environment, Bitcoin has established itself as a key asset.
As it nears a market capitalization of $2 trillion, Bitcoin’s role in global finance is only set to expand, making it an essential asset for investors to watch.
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