Bitcoin achieved a historic milestone on Thursday, breaking through the $100,000 barrier for the first time. This surge is largely driven by the successful launch of US Bitcoin spot ETFs and the election of pro-cryptocurrency former President Donald Trump. Additionally, increasing corporate adoption has played a significant role, with more companies following MicroStrategy’s lead in holding Bitcoin on their balance sheets.
Year-to-date, Bitcoin has gained over 130%, and its market capitalization has now surpassed $2 trillion — a remarkable achievement for an asset that’s only 15 years old. For context, NVIDIA and Apple each hold market caps of approximately $3.5 trillion, Microsoft is around $3 trillion, while Google and Amazon are valued at about $2.2 trillion. The total global market cap of all gold is estimated at $17.7 trillion.
Key Drivers Behind the Rally
US Bitcoin Spot ETFs
A major catalyst behind Bitcoin’s ascent has been the introduction of spot Bitcoin exchange-traded funds (ETFs) by asset management giants like BlackRock and Fidelity in early 2024. These products have seen tremendous success, accumulating around $30 billion in assets under management in less than a year.
Political Influence
Despite the strong ETF inflows, Bitcoin’s price stagnated for much of the year, partly due to uncertainties surrounding the US presidential election. However, the market gained renewed momentum when pro-crypto candidate Donald Trump won the election in early November. Bitcoin quickly surpassed its March high of $73,500, broke through $80,000 and $90,000, and finally reached $100,000 on December 5.
As of this writing, Bitcoin is trading around $104,000, up 7.2% in the past 24 hours. On the same day, Trump formally nominated Paul Atkins, a former SEC commissioner, to lead the Securities and Exchange Commission. This move has been widely praised by many in the cryptocurrency industry.
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Corporate Adoption
Another major factor fueling the market is the growing trend of corporate Bitcoin adoption. MicroStrategy, under the leadership of executive chairman Michael Saylor, has been at the forefront of this movement. Since August 2020, the company has consistently raised billions to acquire Bitcoin and now holds 386,700 BTC, worth over $38 billion.
Saylor’s strategy has inspired other publicly traded companies, including US-based Semler Scientific and Japan-listed Metaplanet. Even Microsoft is reportedly considering a proposal to adopt a Bitcoin treasury reserve strategy, following a presentation made to its board.
Government Adoption and Macro Trends
Beyond corporate adoption, national governments are also beginning to recognize and integrate Bitcoin into their financial systems. El Salvador made headlines in September 2021 by becoming the first country to adopt Bitcoin as legal tender. Bhutan has also accumulated significant Bitcoin reserves through mining operations managed by its sovereign investment arm, Druk Holdings.
Many in the crypto community are now watching closely to see how President Trump will fulfill his promises to support cryptocurrency-friendly policies during his term.
Frequently Asked Questions
What caused Bitcoin to reach $100,000?
The rally was driven by a combination of strong institutional investment through Bitcoin spot ETFs, supportive regulatory developments under the new US administration, and increasing corporate and national adoption.
How does Bitcoin’s market cap compare to major tech companies?
Bitcoin’s market cap now exceeds $2 trillion, placing it in the league of the world’s largest assets. It is still behind companies like Apple and NVIDIA (each around $3.5 trillion) but ahead of Amazon and Google (both near $2.2 trillion).
Which companies are leading corporate Bitcoin adoption?
MicroStrategy is the most prominent corporate holder of Bitcoin, with over 386,000 BTC. Other companies like Semler Scientific and Metaplanet have also begun adopting similar treasury strategies.
Are governments adopting Bitcoin?
Yes. El Salvador officially recognizes Bitcoin as legal tender, and Bhutan has been accumulating Bitcoin through mining. Other nations are exploring similar initiatives as Bitcoin gains legitimacy as a reserve asset.
What is the significance of Trump’s SEC chairman nomination?
Paul Atkins, Trump’s pick for SEC chairman, is viewed favorably by the crypto community due to his previous regulatory experience and perceived openness to innovation in digital assets.
Can Bitcoin’s growth continue?
While past performance doesn’t guarantee future results, many analysts believe continued institutional adoption, macroeconomic uncertainty, and technological developments could support further long-term growth.
Source: Adapted from public market reports and industry analysis.