Bitcoin has reached a historic milestone by surging to $100,000, marking a significant moment for the cryptocurrency landscape after a year of impressive growth. On December 5, the price of Bitcoin crossed this pivotal psychological level, just weeks after it surpassed the $90,000 level on November 12. This remarkable increase has been accompanied by substantial financial momentum within the market.
Throughout the year, the United States witnessed over $31 billion in net inflows into spot Bitcoin exchange-traded funds. This influx of capital coincided with a reduction in supply, primarily driven by Bitcoin ’s fourth halving event, which took place in April. Additionally, key political developments have played a role in bolstering Bitcoin ’s value. The recent nomination of crypto advocate Paul Atkins to the Securities and Exchange Commission could signal a shift in regulatory approaches, potentially easing challenges that have affected the industry during the past administration.
The political landscape has been further shaped by the appointments of hedge fund manager Scott Bessent as the Secretary of Treasury and Cantor Fitzgerald CEO Howard Lutnik to the Department of Commerce. These selections indicate a potentially favorable environment for cryptocurrencies, hinting at one of the most pro-crypto administrations to date.
Since the start of the year, Bitcoin has experienced a staggering rise of 126%, moving from a value of approximately $44,000 in January to its current record. With this newfound valuation, Bitcoin ’s market capitalization has soared, reaching a groundbreaking $2 trillion for the first time.
While Bitcoin ’s recent rally has been remarkable, it is essential to contextualize it within the broader history of the asset. The meteoric rise of 1,900% from $1,000 in January 2017 to nearly $20,000 in December of the same year remains one of its most significant growth periods, followed by a 1,250% rise from $5,100 in March 2020 to nearly $69,000 in November 2021.
