Bitcoin crossed the $100,000 threshold for the first time on Thursday, marking a significant milestone in its journey from a niche libertarian experiment to a mainstream financial asset. The historic rally reflects growing investor confidence in cryptocurrencies amid expectations of a crypto-friendly U.S. administration.<\/p>\r\n\r\n\r\n\r\n
The total market value of cryptocurrencies has nearly doubled in 2024, reaching a record $3.8 trillion, according to CoinGecko. By comparison, Apple\u2019s market capitalization stands at $3.7 trillion. Bitcoin\u2019s rise has created millionaires, introduced a new asset class, and popularized \u201cdecentralized finance\u201d over its volatile 16-year history.<\/p>\r\n\r\n\r\n\r\n
The cryptocurrency has more than doubled in value this year, surging over 50% in the four weeks since Donald Trump\u2019s sweeping election victory. On Thursday morning in Asia, Bitcoin broke past $100,000, quickly climbing to $103,335.<\/p>\r\n\r\n\r\n\r\n
\u201cWe\u2019re witnessing a paradigm shift,\u201d said Mike Novogratz, CEO of Galaxy Digital. \u201cBitcoin and the digital asset ecosystem are entering the financial mainstream, driven by institutional adoption, advancements in tokenization and payments, and a clearer regulatory path.\u201d<\/p>\r\n\r\n\r\n\r\n
President Trump\u2019s pro-crypto stance has been pivotal. During his campaign, he pledged to make the U.S. the global leader in cryptocurrency and proposed a national Bitcoin reserve. His administration plans to establish a crypto advisory council, with major players like Ripple, Kraken, and Circle vying for a seat.<\/p>\r\n\r\n\r\n\r\n
On Wednesday, Trump announced his intent to nominate Paul Atkins, a former SEC commissioner and crypto advocate, to lead the Securities and Exchange Commission (SEC). Atkins has co-chaired the Token Alliance and worked with the Chamber of Digital Commerce to develop best practices for digital assets.<\/p>\r\n\r\n\r\n\r\n
The rally has been fueled by growing institutional adoption. U.S.-listed Bitcoin exchange-traded funds (ETFs), approved earlier this year, have attracted over $4 billion in inflows since the election.<\/p>\r\n\r\n\r\n\r\n
\u201cApproximately 3% of Bitcoin\u2019s total supply has been purchased by institutional investors in 2024,\u201d said Geoff Kendrick, global head of digital assets research at Standard Chartered. \u201cDigital assets are becoming normalized on trading floors, with dedicated desks emerging alongside traditional asset classes like FX and commodities.\u201d<\/p>\r\n\r\n\r\n\r\n
Bitcoin\u2019s ascent to six figures marks a remarkable recovery from its 2022 low of $16,000 following the collapse of FTX. The industry has weathered criticism over its energy consumption and ongoing concerns about crypto-related crime.<\/p>\r\n\r\n\r\n\r\n
Despite these challenges, analysts highlight Bitcoin\u2019s resilience and growing acceptance. \u201cAs time goes by, it\u2019s proving itself as part of the financial landscape,\u201d said Shane Oliver, chief economist at AMP.<\/p>\r\n\r\n\r\n\r\n