Bitcoin Surges Above $100,000: The Culmination of a Year of Embracing Cryptocurrency
Bitcoin has finally breached the highly-anticipated $100,000 mark, capping off a year of increased adoption and recognition from key institutions. The digital currency, which was once seen as a speculative asset for retail traders, has been aggressively bought up by institutions in recent months.
The shift in sentiment can be traced back to the start of 2024, when the first bitcoin ETFs launched in January. Since then, tens of billions of dollars have flowed into these funds, with the iShares Bitcoin Trust holding $50 billion in assets. Institutional buying has also been fueled by large purchases from software company MicroStrategy, with 245,000 new inflows in the weeks following the US presidential election.
President-elect Donald Trump’s support for bitcoin and the industry is also seen as a positive development. Trump has reportedly become a fan of cryptocurrency and the industry, having attended the Bitcoin Conference in Nashville. His pick for SEC chair, Paul Atkins, is also viewed as friendly to the crypto industry.
Federal Reserve Chair Jerome Powell’s comments comparing bitcoin to gold, rather than the US dollar, has also been seen as a sign of legitimacy. However, bitcoin’s price rise may not be entirely sustainable, and experts are wary of potential regulatory crackdowns and the risks associated with investing in a highly-volatile asset.
Despite the risks, bitcoin’s adoption by institutional investors and government officials marks a significant milestone in its journey to becoming a mainstream asset. Whether it will continue to break new records remains to be seen, but for now, bitcoin has firmly claimed its place in the realm of serious investment.