Bitcoin, the world’s largest cryptocurrency by market capitalization, reached the $100,000 price level for the first time, marking a historic milestone for the cryptocurrency market.
On Dec. 5, Bitcoin broke through the $100,000 barrier, hitting an all-time high of $104,000 at 3:08 am UTC, just 90 minutes after surpassing the psychological milestone. The cryptocurrency’s value has surged 126% since Jan. 1, when it was trading at $44,000. Bitcoin’s market capitalization has also reached a record $2 trillion, cementing its position as the dominant digital asset.
Bitcoin reached $100,000 on Dec. 5, 2024, following weeks of steady gains after crossing the $90,000 threshold on Nov. 12.
Bitcoin’s price movement reflects global market trends, driven by increased institutional adoption, U.S. spot Bitcoin exchange-traded fund (ETF) inflows, and macroeconomic factors.
Several key factors have fueled Bitcoin’s rally. The U.S. spot Bitcoin ETFs have attracted over $31 billion in net inflows this year, while Bitcoin’s fourth halving in April reduced the supply of new coins. The victory of Republican Donald Trump in the U.S. presidential election has also bolstered market optimism, with speculation about a strategic Bitcoin reserve gaining momentum. Trump’s nomination of crypto advocate Paul Atkins as SEC chair and pro-crypto picks for Treasury and Commerce departments have further strengthened the bullish sentiment.
Bitcoin’s supply-demand dynamics, alongside regulatory and institutional tailwinds, have propelled its price. Increased corporate adoption, led by MicroStrategy’s Michael Saylor, has added to Bitcoin’s appeal as a store of value. Bitcoin’s performance in 2024, though remarkable, isn’t its most explosive rally. In 2017, the cryptocurrency rose 1,900% from $1,000 in January to $20,000 by December. Similarly, during the COVID-19 pandemic in 2020, Bitcoin surged 1,250%, climbing from $5,100 in March to $69,000 in November 2021.
Bitcoin’s latest rally reinforces its role as a key player in the financial markets, with $100,000 serving as a significant milestone in its ongoing journey.
