Bitcoin surpasses $100K, marking a new era for crypto as institutional adoption and regulatory clarity drive momentum. Investors eye a pro-crypto U.S. administration to cement its financial mainstream status.
Dec 5 (Reuters) - Bitcoin catapulted above $100,000 for the first time on Thursday, a milestone hailed even by sceptics as a coming-of-age for cryptocurrencies as investors bet on a friendly U.S. administration to cement cryptos' place in financial markets.
The total value of the cryptocurrency market has almost doubled over the year so far to hit a record just shy of $3.8 trillion, according to data provider CoinGecko. By comparison, Apple AAPL.O alone is worth about $3.7 trillion.
Bitcoin's march from the libertarian fringe to Wall Street has minted millionaires, a new asset class and popularised the concept of "decentralised finance" in a volatile and often controversial period since its creation 16 years ago.
Bitcoin has more than doubled in value this year and is up more than 50% in the four weeks since Donald Trump's sweeping election victory, which also saw a slew of pro-crypto lawmakers being elected to Congress.
Once it broke $100,000 in Thursday's Asian morning, it was soon above $103,000 and was last fetching $103,335 BTC=.
"We're witnessing a paradigm shift," said Mike Novogratz, founder and CEO of U.S. crypto firm Galaxy Digital.
"Bitcoin and the entire digital asset ecosystem are on the brink of entering the financial mainstream - this momentum is fuelled by institutional adoption, advancements in tokenisation and payments, and a clearer regulatory path."
Trump embraced digital assets during his campaign, promising to make the United States the "crypto capital of the planet" and to accumulate a national stockpile of bitcoin.
"We were trading basically sideways for about seven months, then immediately after Nov. 5, U.S. investors resumed buying hand-over-fist," said Joe McCann, CEO and founder of Asymmetric, a Miami digital assets hedge fund.
On Wednesday, Trump said he would nominate Paul Atkins to run the Securities and Exchange Commission.
Atkins, a former SEC commissioner, has been involved in crypto policy as co-chair of the Token Alliance, which works to "develop best practices for digital asset issuances and trading platforms," and the Chamber of Digital Commerce.
"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 – together – a new wave of American crypto innovation."
A slew of crypto companies including Ripple, Kraken and Circle are also jostling for a seat on Trump's promised crypto advisory council.
PART OF THE LANDSCAPE
Bitcoin has proven a survivor through precipitous downturns.
Its move into six-figure territory is a remarkable comeback from a dip below $16,000 in 2022 when the industry was reeling from the collapse of the FTX exchange. Founder Sam Bankman-Fried was subsequently jailed.
Analysts say the growing embrace of bitcoin by big investors this year has been a driving force behind the record-breaking rally.
U.S.-listed bitcoin exchange-traded funds were approved in January and have been a conduit for large-scale buying, with more than $4 billion streaming into these funds since the election.
"Roughly 3% of the total supply of bitcoins that will ever exist have been purchased in 2024 by institutional money," said Geoff Kendrick, global head of digital assets research at Standard Chartered.
"Digital assets, as an asset class, is becoming normalised," he said. "If you fast forward a number of years on trading floors you'll have a sales and trading desk...which will sit alongside FX and rates and commodities."
It is already becoming increasingly financialised, with the launch of bitcoin futures BTCc1 in 2017 and a strong debut for options on BlackRock's ETF IBIT.O in November.
Crypto-related stocks have soared along with the bitcoin price, with shares in bitcoin miner MARA Holdings MARA.O and exchange operator Coinbase COIN.O each up around 65% in November.
Trump himself unveiled a new crypto business, World Liberty Financial, in September, although details have been scarce and billionaire Elon Musk, a major Trump ally, is also a proponent of cryptocurrencies.
'WHO CAN PROHIBIT IT'
The cryptocurrency industry has been criticised for its massive energy usage, while crypto crime remains a concern, and the underlying technology is yet to deliver a major revolution in the way money moves around the globe.
Still, as Russian President Vladimir Putin pointed out at an investment conference on Wednesday: "Who can prohibit it? No one." And its longevity is perhaps testament to a degree of resilience.
"As time goes by it's proving itself as part of the financial landscape," said Shane Oliver, chief economist and head of investment strategy at AMP in Sydney.
"I find it very hard to value it ... it's anyone's guess. But it does have a momentum aspect to it and at the moment the momentum is up."
Bitcoin and other cryptocurrencies regained value following a ceasefire between Israel and Iran, bouncing back after steep losses during the 12-day conflict.
Donald Trump's media company has filed for a Bitcoin and Ethereum exchange-traded fund (ETF), prompting fresh concerns over potential conflicts of interest as the U.S. President remains active in both politics and cryptocurrency ventures.
Dozens of public companies, including one founded by Donald Trump, are adding bitcoin to their balance sheets, betting big on crypto amid soaring prices and political backing from the U.S. President.
The Moscow Exchange will begin calculating and publishing a Bitcoin index starting Tuesday, using data from major crypto platforms, as interest in digital assets grows in Russia amid Western sanctions.
Japanese hotelier Metaplanet aims to raise $5.4 billion to dramatically expand its Bitcoin holdings to 210,000 BTC by 2027, eyeing 1% of total supply. Shares surged 15% as it mirrors MicroStrategy's successful pivot, becoming a "Bitcoin treasury company" with a "Bitcoin Hotel" set to open in 2026.
A former Venezuelan military intelligence official has pleaded guilty in the United States to drug trafficking and narco-terrorism charges, concluding a two-year legal process following his extradition.
Azerbaijan has summoned Russia’s envoy in Baku to protest the deadly raids targeting Azerbaijani nationals in Yekaterinburg, demanding a full investigation and accountability.
Iran has barred the UN nuclear watchdog’s chief from entering the country and suspended camera installations at its nuclear facilities, escalating tensions over transparency following recent military clashes.
U.S. Senate Republicans are pushing forward with President Donald Trump’s major tax-and-spending bill, aiming to begin debate this weekend on a sweeping measure that could reshape fiscal policy and deepen the national debt.
Iran launched 18 ballistic missiles late Sunday targeting the U.S. military’s Al-Udeid Air Base in Qatar, the largest American installation in the Middle East.
The U.S. economy faces a 40% risk of recession in the second half of 2025, JP Morgan analysts said on Wednesday, citing rising tariffs and stagflation concerns.
Severe rain in Venezuela has caused rivers to overflow and triggered landslides, sweeping away homes and collapsing a highway bridge, with five states affected and no casualties reported so far.
The U.S. Embassy in Qatar has advised American citizens to shelter in place amid rising tensions between Israel and Iran, as part of a broader global security alert issued by Washington.
China has ramped up efforts to protect communities impacted by flood control measures, introducing stronger compensation policies and direct aid from the central government.
The US stock market closed at record highs Friday, with both the S&P 500 and Nasdaq rebounding from late-session losses triggered by trade tensions with Canada.
The European Commission has warned Meta that it may face daily fines starting 27 June if its modified pay-or-consent advertising model fails to meet EU antitrust requirements under the Digital Markets Act.
Nike plans to reduce its reliance on China for U.S.-bound products to offset the financial blow from President Donald Trump’s new tariffs, as the sportswear giant posted better-than-expected fourth-quarter results and a milder revenue forecast.
Nike is stepping back from China-based production for its U.S. market to dodge tariff-related costs, aiming to shift its sourcing strategy by 2026.
The U.S. economy faces a 40% risk of recession in the second half of 2025, JP Morgan analysts said on Wednesday, citing rising tariffs and stagflation concerns.
A former Venezuelan military intelligence official has pleaded guilty in the United States to drug trafficking and narco-terrorism charges, concluding a two-year legal process following his extradition.
Azerbaijan has summoned Russia’s envoy in Baku to protest the deadly raids targeting Azerbaijani nationals in Yekaterinburg, demanding a full investigation and accountability.
Iran has barred the UN nuclear watchdog’s chief from entering the country and suspended camera installations at its nuclear facilities, escalating tensions over transparency following recent military clashes.
U.S. Senate Republicans are pushing forward with President Donald Trump’s major tax-and-spending bill, aiming to begin debate this weekend on a sweeping measure that could reshape fiscal policy and deepen the national debt.
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