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Bitcoin has surpassed the $100,000 mark for the first time in history, becoming not only a symbol of a new stage for digital assets but also showing that cryptocurrencies have a firm foothold in the financial market. This record was reached on Thursday morning (Asian time), and immediately the cryptocurrency rose to a new all-time high of $103,619, which was a 6% increase during the day. As of the latest information, Bitcoin is trading at $102,650, according to Reuters.
The total value of the cryptocurrency market has almost doubled this year, reaching a record $3.8 trillion, according to CoinGecko. For comparison, Apple, one of the world’s largest corporations, is valued at $3.7 trillion.
Bitcoin: from fringe ideas to a major financial asset
Bitcoin, once considered a fringe asset for rebels and tech enthusiasts, has now become part of the financial system, turning many into millionaires and popularising the concept of “decentralised finance”. Cryptocurrencies have doubled in value this year, rising by more than 50% following Donald Trump’s victory in the presidential election, which also saw the election of a number of pro-cryptocurrency lawmakers.
“We’re witnessing a paradigm shift,” said Mike Novogratz, founder and CEO of US-based crypto company Galaxy Digital. “Bitcoin and the entire digital asset ecosystem are moving closer to entering the financial mainstream, and this process is being supported by institutional adoption, the development of tokenisation and payment systems, and clearer regulatory pathways.”
Trump and cryptocurrencies: a new era
Trump’s support for cryptocurrencies during his election campaign, his promise to make the US the “crypto capital of the world” and the creation of a national Bitcoin reserve have had a significant impact on the market. However, one of the biggest news stories was Trump’s appointment of Paul Atkins, a cryptocurrency advocate, as chairman of the US Securities and Exchange Commission (SEC). Atkins has a deep understanding of the digital asset ecosystem and has previously worked in cryptocurrency policy as co-chair of the Token Alliance, an organisation that develops best practices for the issuance and trading of digital assets.
“This is a new perspective based on a deep understanding of the crypto ecosystem,” said Christine Smith, CEO of the Blockchain Association. “We look forward to working with him and together we will launch a new wave of crypto innovation in the US.”
Bitcoin is a winner of crises and unpredictable falls
Despite its numerous drops, Bitcoin continues to prove its resilience and ability to recover. After the collapse of the FTX crypto exchange in 2022, when Bitcoin dropped below $16,000, the cryptocurrency made a fantastic surge to six figures. The cryptocurrency market continues to actively accept new investments, and crypto companies such as Ripple, Kraken and Circle are actively competing for a place on Trump’s crypto advisory council.
Institutional movement towards cryptocurrencies
Stock exchanges and institutional investors continue to support cryptocurrencies. From the authorisation of Bitcoin ETFs in January and the huge injections of funds into these funds after the election, institutional demand for Bitcoin is becoming increasingly tangible. Analysts estimate that about 3% of the total supply of Bitcoin in 2024 was purchased by institutional investors.
“Digital assets as an asset class are becoming the norm,” said Jeff Kendrick, global head of digital asset research at Standard Chartered. “In the future, cryptocurrencies will be trading alongside currencies, interest rates and commodities.”
Continuation of financialisation and the cryptocurrency market
Currently, cryptocurrencies are rapidly integrating into traditional financial systems, notably with the launch of Bitcoin futures back in 2017 and the strong debut of BlackRock ETF options in November. Crypto stocks have also shown significant growth, with Bitcoin miner MARA Holdings and exchange operator Coinbase both up 65% in November.
Bitcoin continues to impress with its growth, and its reliability in market conditions, even in the face of speculation and crisis, seems to be becoming an increasingly indisputable part of the financial architecture of the future.
