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."
US President Donald Trump has signed an executive order establishing a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile, under the Treasury Department.
Bitcoin and ether, the two largest cryptocurrencies by market capitalization, plunged to multi-month lows on Tuesday amid a broad market sell-off and heightened uncertainty following last week's hack that siphoned $1.5 billion in ether from the crypto exchange Bybit.
Bitcoin fell below $100,000 on Monday, hitting an 11-day low as market caution spiked following the debut of a Chinese AI model that triggered a selloff in Western tech stocks.
Bitcoin surged 2.5% to $104,736 after Trump’s executive order on cryptocurrency, while Ethereum rose 4%. Market cap hit $2.07T amid regulatory and tech advancement plans.
Bitcoin has hit a new all-time high, peaking at $109,241 before settling at $108,096.98 (+2.84%), according to Binance data.
Wisconsin Attorney General Josh Kaul has filed a lawsuit to stop Elon Musk from giving $2 million to voters ahead of the state’s Supreme Court election, calling it a violation of state election laws.
Severe storms have brought deadly floods to the Texas–Mexico border, killing at least four people and forcing hundreds into shelters.
M23 rebel leaders have arrived in Qatar for further talks with mediators, following an earlier meeting between the presidents of DRC and Rwanda.
Elon Musk’s xAI has acquired his social media platform X in a $33 billion all-stock deal.
Russian President Vladimir Putin has suggested placing Ukraine under temporary UN administration before negotiations on a peace deal can begin.
Royal Australian Air Force (RAAF) pilots, monitoring a Chinese navy warship as it navigated Australian waters, were alerted to a live-fire exercise via a civilian radio broadcast, defense officials revealed on Tuesday.
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Russian forces carried out a drone attack on Ukraine’s second-largest city, Kharkiv, late Wednesday, injuring at least twenty one people and causing structural damage, according to Ukrainian officials.
A devastating overnight drone attack on Kyiv, attributed to Russian forces, resulted in the deaths of three people, including a five-year-old child, and left ten others injured.
The Trump administration is importing eggs from Türkiye and South Korea to address shortages and record-high prices caused by a severe bird flu outbreak.
Elon Musk’s xAI has acquired his social media platform X in a $33 billion all-stock deal.
Popular coffee brands are negotiating price hikes with retailers due to a sharp rise in arabica costs, with some supermarket shelves running out of stock. Prices may increase by up to 25% as companies grapple with supply chain pressures.
Zhang Yiming, the founder of Bytedance and owner of TikTok, has become China’s richest person, according to multiple wealth rankings. Bloomberg Billionaires Index places him as the world’s 24th wealthiest individual, with his fortune estimated between $57.5 billion and $65.5 billion.
Canada has suspended Tesla rebate payments and barred the automaker from future EV incentives due to U.S. tariffs. Transport Minister Chrystia Freeland said the freeze will remain until claims are individually reviewed.
China has strongly criticized U.S. President Donald Trump's recent executive order, which threatens to impose a 25% tariff on all goods imported to the U.S. from any country that imports oil from Venezuela.
Wisconsin Attorney General Josh Kaul has filed a lawsuit to stop Elon Musk from giving $2 million to voters ahead of the state’s Supreme Court election, calling it a violation of state election laws.
Severe storms have brought deadly floods to the Texas–Mexico border, killing at least four people and forcing hundreds into shelters.
M23 rebel leaders have arrived in Qatar for further talks with mediators, following an earlier meeting between the presidents of DRC and Rwanda.
Elon Musk’s xAI has acquired his social media platform X in a $33 billion all-stock deal.
Russian President Vladimir Putin has suggested placing Ukraine under temporary UN administration before negotiations on a peace deal can begin.
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