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."
The year began with cautious optimism as a ceasefire deal, brokered by Egypt and Qatar on January 15th, brought a temporary halt to the 15 months of d...
One year after the fall of Bashar al-Assad, Syria remains at a critical crossroads, attempting to rebuild after 14 years of civil war while confrontin...
Nasry Asfura, the conservative candidate for Honduran president backed by U.S. President Donald Trump, was declared the winner on Wednesday more than ...
The year 2025 marked a global first in social media regulation, as Australia enacted the world’s first blanket ban on social media usage for childre...
Turkish authorities have detained 115 suspected Islamic State members they said were planning to carry out attacks on Christmas and New Year celebrati...
Bitcoin surged to a new all-time high as expectations grow for U.S. interest rate cuts and regulatory moves favouring crypto investment, boosting investor confidence in the sector.
Bitcoin hit a new all-time high on Monday morning, surpassing the $123,000 mark and gaining over 4% during the day.
The U.S. dollar strengthened and Bitcoin surged to a new record, as investors shrugged off fresh tariff threats from President Donald Trump.
Bitcoin and other cryptocurrencies regained value following a ceasefire between Israel and Iran, bouncing back after steep losses during the 12-day conflict.
A majority of Russians expect the war in Ukraine to end in 2026, state pollster VTsIOM said on Wednesday, in a sign that the Kremlin could be testing public reaction to a possible peace settlement as diplomatic efforts to end the conflict intensify.
Thailand and Cambodia both reported fresh clashes on Wednesday, as the two sides prepared to hold military talks aimed at easing tensions along their shared border.
Military representatives from Cambodia and Thailand met in Chanthaburi province on Wednesday ahead of formal ceasefire talks at the 3rd special GBC meeting scheduled for 27th December.
Libya’s chief of staff, Mohammed Ali Ahmed Al-Haddad, has died in a plane crash shortly after departing Türkiye’s capital, Ankara, the prime minister of Libya’s UN-recognised government has said.
Afghanistan and Iran have signed an implementation plan to strengthen regulation of food, medicine, and health products based on a 2023 cooperation agreement.
China has given the nod for car makers to sell Level 3 self-driving vehicles from as early as next year after it approved two electric sedans from Changan Auto and BAIC Motors.
Warner Bros Discovery’s board rejected Paramount Skydance’s $108.4 billion hostile bid on Wednesday (17 December), citing insufficient financing guarantees.
Ford Motor Company said on Monday it will take a $19.5 billion writedown and scrap several electric vehicle (EV) models, marking a major retreat from its battery-powered ambitions amid declining EV demand and changes under the Trump administration.
Iran has rolled out changes to how fuel is priced at the pump. The move is aimed at managing demand without triggering public anger.
U.S. stock markets closed lower at the end of the week, as investors continued to rotate out of technology shares, putting pressure on major indices.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment