Bitcoin (BTC) has achieved a historic milestone, reaching $100,000 for the first time on Dec. 5. This landmark price, breaking a psychological barrier, comes after a strong year for the cryptocurrency market, with Bitcoin also setting a new all-time high of $104,000 at 3:08 am UTC. The rally marks an impressive 126% increase in BTC’s value since the start of the year, when it traded around $44,000.
Key drivers of this monumental rise include:Bitcoin ETF Demand: Over $31 billion in net inflows from spot Bitcoin exchange-traded funds in the U.S. fueled the surge.Supply Constraints: Bitcoin’s fourth halving in April significantly tightened supply, reducing block rewards from 6.25 to 3.125 BTC.
Political and Regulatory Factors: Donald Trump’s victory in the U.S. presidential election reignited speculation about Bitcoin’s adoption as a strategic national reserve. His pro-crypto moves, including nominating Paul Atkins to replace Gary Gensler as SEC chair, are anticipated to reduce regulatory hurdles. Trump also selected crypto-friendly figures like Scott Bessent and Howard Lutnick for key cabinet roles, further boosting market sentiment.
Bitcoin’s rise to $100K also highlights increased corporate adoption, spearheaded by MicroStrategy’s Michael Saylor, who continues to advocate for Bitcoin as a treasury asset.
While Bitcoin’s 2024 rally is impressive, it is not the largest bull run in its history. The cryptocurrency experienced a 1,900% increase in 2017, surging from $1,000 to $20,000, and a 1,250% rally from $5,100 in March 2020 to its previous all-time high of $69,000 in November 2021.
With Bitcoin now at $100K and its market capitalization reaching $2 trillion for the first time, it solidifies its position as a dominant force in the financial world, setting the stage for further adoption and growth.
Source: Cointelegraph
