Bitcoin has surpassed the historic milestone of $100,000, setting a new record amid significant investment inflow and a series of positive events in the crypto industry.
The leading cryptocurrency reached $100,000 on December 5th, and an hour and a half later, set a new all-time high of $104,000. Since the beginning of the year, the price of bitcoin has increased by 145%, largely due to the launch of spot bitcoin ETFs in the US and the fourth halving in April.
1-day BTC/USDT chart. Source: Cryptovizor
The net inflow into U.S. spot bitcoin ETFs exceeded $31 billion. Additional support came from the victory of Donald Trump in the U.S. presidential elections and growing expectations of creating a strategic bitcoin reserve at the national level.
A significant contribution to the growth was made by the prospect of Trump appointing crypto expert Paul Atkins as head of the SEC instead of Gary Gensler. This decision could remove several regulatory barriers that hindered the industry's development under the Biden administration.
Trump nominated hedge fund manager Scott Bessent as Secretary of the Treasury, and Cantor Fitzgerald CEO Howard Lutnick may become Secretary of Commerce. This could form the most crypto-friendly cabinet.
The current growth is not the record in bitcoin's history. In 2017, the price rose 1,900% — from $1,000 in January to $20,000 in December. Following the COVID-19 pandemic declaration in March 2020, growth was 1,250% — from $5,100 to $69,000 in November 2021.
Top 5 cryptocurrencies by market cap. Source: CoinMarketCap
Bitcoin’s market capitalization reached $2 trillion for the first time in history, confirming the growing recognition of cryptocurrencies as an asset class.