Bitcoin has surpassed the $100,000 mark for the first time in history, a significant achievement that has been hailed as a “coming-of-age” moment for cryptocurrencies. The milestone comes as the broader cryptocurrency market approaches a record valuation of nearly $3.8 trillion, a near doubling in value this year alone, according to CoinGecko. In comparison, Apple, the world’s most valuable company, is worth around $3.7 trillion.
The surge in Bitcoin’s price is partly attributed to growing optimism among investors that the United States will adopt a more crypto-friendly regulatory environment. This momentum was bolstered by Donald Trump’s victory in the November 2024 election, which saw pro-crypto lawmakers elected to Congress. Bitcoin, which has more than doubled in value this year, rose by more than 50% in the four weeks following Trump’s sweeping election win. In early trading on Wednesday, Bitcoin surpassed $103,000, continuing its upward trajectory with a 6% daily increase.
Joe McCann, CEO of Asymmetric, a Miami-based digital assets hedge fund, noted the resurgence in US investment since the November elections. “We were trading sideways for about seven months, then immediately after November 5, US investors resumed buying hand-over-fist,” McCann said.
The pro-crypto stance of Trump, who campaigned on making the US the “crypto capital of the planet,” has also driven interest in digital assets. As part of his plan, Trump promised to accumulate a national stockpile of Bitcoin. Additionally, Trump’s nomination of Paul Atkins, a former SEC commissioner with ties to the crypto industry, to head the Securities and Exchange Commission (SEC), has been welcomed by industry leaders. Kristin Smith, CEO of the Blockchain Association, said Atkins would bring a “new perspective” to digital asset regulation.
The approval of US-listed Bitcoin exchange-traded funds (ETFs) in January has also been a catalyst for large-scale institutional investment, with over $4 billion flowing into these funds since the election. Bitcoin’s growing popularity among institutional investors is seen as a key driver behind its record-breaking rally this year. Analysts estimate that approximately 3% of Bitcoin’s total supply has been purchased by institutional buyers in 2024 alone.
The cryptocurrency’s impressive recovery from its low of under $16,000 in 2022, following the collapse of the FTX exchange, has further cemented Bitcoin’s status as a resilient asset. Despite concerns over its environmental impact and crypto-related crime, the market’s increasing financialisation, including the launch of Bitcoin futures and ETFs, signals that digital assets are becoming more integrated into traditional financial markets.
Shares in companies tied to the crypto industry, such as Bitcoin miner MARA Holdings and exchange operator Coinbase, have surged alongside Bitcoin’s price, reflecting broader investor confidence in the sector. As the market continues to evolve, experts predict that digital assets will eventually sit alongside traditional financial products like foreign exchange and commodities on trading floors.
