TLDR:
Bitcoin reached $100,000 and hit a new all-time high of $104,000 on December 5, 2024
The price surge represents a 126% increase since January 2024, when Bitcoin traded at $44,000
Trump’s election victory and nomination of crypto-friendly Paul Atkins as SEC chair significantly influenced the rally
US spot Bitcoin ETFs saw over $31 billion in net inflows throughout the year
Discussion of a potential White House “crypto czar” role and national Bitcoin stockpile further boosted market confidence
In a historic moment for the cryptocurrency market, Bitcoin surpassed $100,000 for the first time on December 5, 2024, reaching a new all-time high of $104,000. The milestone comes after months of steady growth and marks a 126% increase from January’s starting price of $44,000.
⇣ 97,234.05
5 Dec
⇡ 103,255.67
The breakthrough occurred at approximately 3:08 AM UTC, just weeks after Bitcoin had crossed the $90,000 threshold on November 12. The digital currency’s market capitalization has now reached $2 trillion, another first in its 15-year history.
Eric Demuth, co-founder and CEO of Bitpanda, commented:
“With the election of Trump as the 47th President of the United States, certainty now prevails. The final element of uncertainty has been removed, and the world’s largest financial market is on the verge of embracing liberal, crypto-friendly regulation for our industry.”
“With Paul Atkins as the new SEC chair, a proven supporter of crypto, and the current Chair of the Federal Reserve Powell labelling Bitcoin as digital gold, we are witnessing a breakthrough in the best sense of the word. The positive developments of recent years – such as increasing retail adoption, crypto market regulation in Europe, central bank interest rate cuts, and the integration of crypto into traditional financial systems and bank portfolios – are now coming into full effect.”
“This Wednesday alone, we witnessed $533m in inflows to BTC ETFs. The market is eager, prices are rising. Bitcoin surpassing $100,000 isn’t merely a milestone—it marks a true turning point for the future of the crypto industry.”
The rally has been partly fueled by the success of spot Bitcoin exchange-traded funds (ETFs) in the United States, which have attracted more than $31 billion in net inflows throughout the year. These investment vehicles have made it easier for traditional investors to gain exposure to Bitcoin through conventional brokerage accounts.
Donald Trump’s victory in the US presidential election has emerged as a major catalyst for Bitcoin’s price surge. The cryptocurrency has gained over 40% since Trump’s win last month, with investors responding positively to his administration’s pro-crypto stance.
The president-elect’s recent nomination of Paul Atkins as the new Securities and Exchange Commission (SEC) chair has further strengthened market confidence. Atkins, the CEO and Founder of Patomak Global Partners and a former SEC commissioner, is widely viewed as a crypto-friendly choice for the position.
Trump announced Atkins’ nomination on Truth Social, stating that he “is a proven leader for common sense regulations” and acknowledging that “digital assets & other innovations are crucial to Making America Greater than Ever Before.”
The appointment has received bipartisan support, with Democratic New York Senator Kirsten Gillibrand stating that Atkins has the “right experience” to create federal crypto legislation. This marks a sharp contrast to the regulatory approach under current SEC Chair Gary Gensler, who will step down on January 20, 2024.
Reports have emerged that Trump’s transition team is discussing the creation of a new White House role of “crypto czar” to oversee Bitcoin policy. This development, combined with Trump’s campaign promises to prioritize the creation of a bitcoin national stockpile, has contributed to positive market sentiment.
Corporate adoption of Bitcoin continues to grow, led by MicroStrategy’s Michael Saylor, who has maintained his company’s strategy of accumulating Bitcoin throughout the year. The business intelligence firm’s commitment to Bitcoin has influenced other corporations to consider similar treasury strategies.
Adding to the market momentum, Trump Media & Technology Group is reportedly in advanced talks to acquire crypto trading company Bakkt, according to recent Financial Times reporting. This potential merger could lead to new initiatives within the cryptocurrency sector.
The cryptocurrency’s supply dynamics have also played a role in the price increase. Bitcoin’s fourth halving event in April 2024 reduced the rate of new Bitcoin creation, contributing to supply pressure as demand continued to rise.
Options trading has expanded in the crypto space, with instruments tied to BlackRock’s spot Bitcoin ETF (IBIT) beginning to trade on the Nasdaq in November. This development has brought additional trading activity and liquidity to the market.
Trump’s broader cabinet appointments have also supported the rally. The selection of hedge fund manager Scott Bessent and Cantor Fitzgerald CEO Howard Lutnik to head the Treasury and Commerce departments respectively has created what many consider could be the most crypto-friendly cabinet in US history.
Despite the historic achievement, market analysts have urged caution. Owen Lau, executive director and senior analyst at Oppenheimer, warned of potential volatility near the $100,000 level, noting that “there may be some selling pressures and people looking for the next breakout level.”
For context, while impressive, Bitcoin’s current rally is not its largest percentage increase. The cryptocurrency saw a 1,900% rise in 2017, climbing from $1,000 to $20,000, and a 1,250% increase during the 2020-2021 bull run, when it rose from $5,100 to $69,000.
