Bitcoin surged beyond $100,000 for the first time on Thursday, marking a historic milestone as investor confidence swelled over the cryptocurrency’s growing acceptance in financial markets and the pro-crypto stance of the newly elected U.S. administration.
The cryptocurrency market, now valued at nearly $3.8 trillion, has seen its total worth almost double in 2024, according to data from CoinGecko. For comparison, Apple’s market capitalization sits at approximately $3.7 trillion, underscoring the rapid ascent of digital currencies.
Bitcoin’s journey from its inception on the libertarian fringes to its current status as a mainstream financial asset has transformed the landscape of global finance. Over 16 years, it has birthed new wealth, popularized decentralized finance, and created an entirely new asset class, despite its volatile and controversial nature.
Bitcoin’s value has doubled this year alone, climbing more than 50% in the four weeks since Donald Trump’s sweeping re-election victory, which also ushered in a wave of pro-crypto lawmakers to Congress.
On Thursday, Bitcoin hit $103,335 after breaking the $100,000 mark during Asia’s morning trading hours.
A Paradigm Shift in Digital Assets
“We’re witnessing a paradigm shift,” said Mike Novogratz, founder and CEO of U.S.-based crypto firm Galaxy Digital. “Bitcoin and the entire digital asset ecosystem are on the brink of entering the financial mainstream. This momentum is fueled by institutional adoption, advancements in tokenization and payments, and a clearer regulatory path.”
Trump’s campaign promises to make the United States the “crypto capital of the planet” have played a key role in driving the latest rally. The president also pledged to build a national Bitcoin stockpile.
Joe McCann, CEO and founder of Miami-based digital assets hedge fund Asymmetric, remarked, “We were trading basically sideways for about seven months, then immediately after Nov. 5, U.S. investors resumed buying hand-over-fist.”
On Wednesday, Trump announced his intention to nominate Paul Atkins as head of the Securities and Exchange Commission (SEC). Atkins, a former SEC commissioner and co-chair of the Token Alliance, is a strong advocate for cryptocurrency policy.
“Atkins will offer a new perspective, anchored by a deep understanding of the digital asset ecosystem,” said Blockchain Association CEO Kristin Smith. “We look forward to working with him and ushering in a new wave of American crypto innovation.”
Institutional Adoption Driving Bitcoin’s Rally
The approval of U.S.-listed Bitcoin exchange-traded funds (ETFs) in January has further spurred institutional investment in digital assets. Over $4 billion has flowed into these funds since Trump’s election victory, analysts report.
Geoff Kendrick, global head of digital assets research at Standard Chartered, noted, “Roughly 3% of the total supply of bitcoins that will ever exist have been purchased in 2024 by institutional money. Digital assets, as an asset class, are becoming normalized.”
Kendrick predicts a future where digital assets occupy a standard place on trading floors alongside traditional commodities, foreign exchange, and interest rates.
Bitcoin’s resilience has been remarkable, bouncing back from a low of under $16,000 in 2022 amid the collapse of the FTX exchange and the subsequent imprisonment of its founder, Sam Bankman-Fried.
As Bitcoin reaches six-figure valuations, its survival and growth through turbulent times underline its role as a key player in the future of global finance. Whether its rise signals the dawn of a more democratized financial era or the consolidation of wealth among early adopters remains a topic of global debate.