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.
The total market value of cryptocurrencies has nearly doubled in 2024, reaching a record $3.8 trillion, according to CoinGecko. By comparison, Apple’s market capitalization stands at $3.7 trillion. Bitcoin’s rise has created millionaires, introduced a new asset class, and popularized “decentralized finance” over its volatile 16-year history.
The cryptocurrency has more than doubled in value this year, surging over 50% in the four weeks since Donald Trump’s sweeping election victory. On Thursday morning in Asia, Bitcoin broke past $100,000, quickly climbing to $103,335.
Institutional Momentum and Regulatory Clarity
“We’re witnessing a paradigm shift,” said Mike Novogratz, CEO of Galaxy Digital. “Bitcoin and the digital asset ecosystem are entering the financial mainstream, driven by institutional adoption, advancements in tokenization and payments, and a clearer regulatory path.”
President Trump’s 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.
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.
Institutional Buying Spurs Rally
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.
“Approximately 3% of Bitcoin’s total supply has been purchased by institutional investors in 2024,” said Geoff Kendrick, global head of digital assets research at Standard Chartered. “Digital assets are becoming normalized on trading floors, with dedicated desks emerging alongside traditional asset classes like FX and commodities.”
Resilience Amid Challenges
Bitcoin’s 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.
Despite these challenges, analysts highlight Bitcoin’s resilience and growing acceptance. “As time goes by, it’s proving itself as part of the financial landscape,” said Shane Oliver, chief economist at AMP.
Crypto-related stocks have mirrored Bitcoin’s meteoric rise, with shares of miner MARA Holdings and exchange operator Coinbase climbing 65% in November alone.
The Path Ahead
Bitcoin’s financialization continues, with futures, options, and ETFs gaining traction. High-profile endorsements, such as Trump’s crypto business initiative, World Liberty Financial, and Elon Musk’s outspoken support, further underscore the growing prominence of digital assets.
Russian President Vladimir Putin, speaking at an investment conference, summed up the sentiment: “Who can prohibit it? No one.”
As Bitcoin forges ahead, its integration into global financial systems appears inevitable, fueled by institutional momentum, regulatory support, and evolving market dynamics.
