Bitcoin sets new record at 102K dollars
Earlier on Thursday morning, during a sustained rally, Bitcoin (BTC) crossed the $100,000 threshold, reaching a new all-time high. This news is coming almost 15 years after the leading cryptocurrency went live. Some traders anticipate that this trend will continue.
Bitcoin surpasses $100,000 milestone
According to data from CoinMarketCap, the leading cryptocurrency by market capitalization rose by 6% over the previous day, trading at $102,613 at the time of reporting.
Reason for surge in Bitcoin price
Since the Republican victory in the November election signaled the end of the war on cryptocurrency announced by the Biden administration and its appointed SEC Chair Gary Gensler, the price of Bitcoin has been soaring through the roof.
A few hours after President-elect Trump named Paul Atikins, a former SEC commissioner and co-chair of the Digital Chamber's Token Alliance, as Gensler's successor at the SEC, the price of BTC surged above $100,000. Trump also nominated Scott Bessent, the founder of Key Square Capital Management, to be the Secretary of Treasury, making the rest of the administration the most pro-crypto friendly ever.
Donald Trump presidential election victory
For a long time, cryptocurrency markets have been sideways, and the price of Bitcoin in particular has stayed largely steady. This was quickly altered by Trump's electoral campaign and subsequent election victory. The market was positively impacted by Trump's victory last month, as analysts expected his administration to provide more transparent regulations for cryptocurrencies.
Republicans will be able to carry out Trump's pro-crypto pledges now that they control the House of Congress. Bitcoin price has risen above $100,000 in a single month due to the possibility of a government that is truly supportive of cryptocurrency.
Inflation hedges and long-term investment opportunities
Additionally, growing demand for digital assets as long-term investment opportunities and inflation hedges drove the price spike of Bitcoin long before the election.
Corporate and institutional interest is still a major factor driving Bitcoin price. The biggest publicly traded company that owns Bitcoin, MicroStrategy, revealed in November that it had paid $1.5 billion to purchase an additional 15,400 BTC.
The company plans to use the money raised to buy more Bitcoin, thereby enhancing its position as a key participant in the institutional adoption of the virtual currency. Currently, MicroStrategy owns 402,100 BTC, which is worth roughly $40.5 billion.
Spot exchange-traded fund inflows
Another driving force behind the cryptocurrency's rise above the $100,000 mark is the spot exchange-traded fund inflows in the US. November set a new record for spot Bitcoin ETFs, according to data from Glassnode. Over the past month, $6.1 billion has been invested in Bitcoin ETFs, with $5.4 billion going into BlackRock's IBIT fund.
Bitcoin halving
The 21 million coins that make up the total supply of Bitcoin are intended to be distributed via BTC mining. Even though more than 90% of the Bitcoin supply is currently in use, it is predicted that the full supply will reach the market by 2140. An important part of Bitcoin economic structure, the halving event takes place roughly every four years.
Miners got 50 BTC per block when the cryptocurrency first launched in 2009. In keeping with this pattern of slowing supply growth, the most recent halving, which took place on April 19, 2024, decreased the block reward to 3.125 BTC. The price of Bitcoin will rise as a result of its updated scarcity if demand for the cryptocurrency stays the same or rises.
Mt. Gox transfers $2.4 billion in BTC
Late Wednesday night, as Bitcoin reached the $100,000 milestone, the defunct cryptocurrency exchange Mt. Gox moved almost 24,000 BTC, valued at approximately $2.4 billion, to an unmarked address, according to Arkham Intelligence data.
Mt. Gox transferred 24,051.75 BTC to one unmarked wallet address, "1N7jW...1u8Yp," from the exchange's other cold wallet storage. Since November 12, this is the exchange's first major transfer. Prior to a significant security breach that resulted in the loss of at least 850,000 BTC in 2014, Mt. Gox, which was established in Tokyo in 2010, was the largest Bitcoin exchange globally. Over the course of the last few months, thousands of creditors have been waiting to receive their Bitcoin back.
Bitcoin is like digital gold
Chair of the U.S. Federal Reserve Jerome Powell compared Bitcoin to gold as the price of the cryptocurrency approaches $100,000. "Bitcoin is not a competitor for the dollar," he said. "Bitcoin is really a competitor for gold; that's really how I think of it."
As we approach the end of 2024, no one can predict when Bitcoin will reach its peak price as it begins price discovery.
Disclaimer
This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.