Bitcoin breaks a historic breakthrough, surpassing the $100,000 mark for the first time, marking a significant moment for the cryptocurrency market. Late Wednesday, the flagship digital currency climbed to $102,874, according to Coin Metrics, briefly touching an intraday high of $103,844. This surge represents a more than 7% rise in value and cements Bitcoin’s position as a key player in the evolving financial landscape.
The milestone aligns with shifting political and regulatory developments in the U.S. President-elect Donald Trump’s announcement of Paul Atkins as his choice to lead the Securities and Exchange Commission (SEC) sparked optimism within the crypto community. Atkins is expected to bring a more favorable approach compared to outgoing SEC Chair Gary Gensler, who was criticized for his stringent regulatory stance. Additionally, Federal Reserve Chair Jerome Powell likened Bitcoin to gold at the DealBook conference, noting its role as a digital asset but distinguishing it from traditional payment systems and fiat currencies.
This remarkable rise has been years in the making, rewarding long-term investors who weathered Bitcoin’s volatile cycles while enduring skepticism from financial institutions and regulatory bodies.
Institutional Endorsements Propel Bitcoin’s Meteoric Rise
The institutional embrace of Bitcoin has played a crucial role in its ascent. 2024 saw a surge in demand for spot Bitcoin exchange-traded funds (ETFs) introduced by financial giants like BlackRock, Fidelity, and Invesco. The approval and launch of these ETFs in January were celebrated as Bitcoin’s “IPO moment,” reflecting its growing acceptance in mainstream finance.
Bitcoin breaks new ground as strategic moves within the financial industry have bolstered the momentum. Rick Wurster, the incoming CEO of Charles Schwab, recently announced plans to enter the crypto trading space, pending regulatory adjustments expected under the Trump administration. Such developments signal an industry-wide recognition of Bitcoin’s potential to transform investment portfolios and offer alternative value storage akin to gold.
Mike Novogratz, CEO of Galaxy Digital, described this shift as a paradigm change, noting that Bitcoin and the broader digital asset sector are poised to gain a foothold in traditional financial markets. Novogratz emphasized that while volatility remains inherent, the growing alignment between institutional interest and regulatory clarity sets the stage for long-term growth.
A New Chapter for Bitcoin in a Pro-Crypto Environment
The unprecedented rise of Bitcoin comes amid heightened expectations for pro-crypto policies under the incoming administration. Investors are optimistic that Trump’s government will implement initiatives such as a national strategic Bitcoin reserve, tax-free crypto transactions, and expanded opportunities for cryptocurrency-based initial public offerings (IPOs).
Bitcoin’s ascent to $100,000 was widely anticipated following the U.S. presidential election, but the milestone arrived faster than many predicted, fueled by investor enthusiasm and a favorable policy outlook. On November 22, Bitcoin nearly breached the threshold, hitting $99,849.99 before its record-breaking climb.
Looking ahead, the potential for broader global adoption remains strong. Bitcoin breaks new ground as “Over the long term, I’m bullish,” Novogratz remarked, advising investors to remain cautious amidst market fluctuations. He added that with the U.S. set to lead the way in embracing cryptocurrencies, international markets are likely to follow suit, reinforcing Bitcoin’s position as a transformative financial asset.
