Bitcoin has made a historic leap, crossing the $100,000 threshold for the first time on December 5, 2024, marking a significant milestone in its evolution from a niche digital asset to a dominant player in the global financial system. The cryptocurrency’s rally reflects growing investor confidence, propelled by an increasingly crypto-friendly U.S. administration and a series of institutional adoptions.
The market value of cryptocurrencies as a whole has nearly doubled in 2024, soaring to a record $3.8 trillion, according to CoinGecko. By comparison, tech giant Apple’s market capitalization stands at $3.7 trillion, underscoring the massive growth in the digital asset sector. Bitcoin’s rise has not only created new millionaires but has also popularized decentralized finance (DeFi), establishing a new asset class that is now integral to modern investment portfolios.
In just four weeks following the election of President Donald Trump, Bitcoin surged over 50 percent, more than doubling in value for the year. On the morning of December 5, Bitcoin broke through the $100,000 barrier, hitting $103,335, reflecting the confidence of institutional investors and individuals alike in the cryptocurrency’s future.
Mike Novogratz, CEO of Galaxy Digital, commented on the milestone, stating, “We’re witnessing a paradigm shift. Bitcoin and the digital asset ecosystem are entering the financial mainstream, driven by institutional adoption, advancements in tokenization and payments, and a clearer regulatory path.”
President Trump’s pro-crypto stance has played a significant role in the cryptocurrency’s rise. Throughout his campaign, Trump pledged to make the U.S. the global leader in cryptocurrency and proposed the creation of a national Bitcoin reserve. His administration has actively worked towards establishing a more crypto-friendly regulatory environment. Trump also plans to set up a crypto advisory council, with key players like Ripple, Kraken, and Circle seeking seats.
Further boosting the sector’s momentum, Trump announced his intention to nominate Paul Atkins, a former SEC commissioner and crypto advocate, to head the Securities and Exchange Commission (SEC). Atkins, who co-chaired the Token Alliance and has been instrumental in crafting best practices for digital assets, is widely viewed as a proponent of a more lenient regulatory approach to cryptocurrencies.
Institutional adoption has been a critical factor in Bitcoin’s surge. The approval of U.S.-listed Bitcoin exchange-traded funds (ETFs) earlier in the year has brought over $4 billion in inflows into the digital asset space. According to Geoff Kendrick, global head of digital assets research at Standard Chartered, “Approximately 3 percent of Bitcoin’s total supply has been purchased by institutional investors in 2024.” This institutional involvement has made digital assets more normalized in traditional financial spaces, with dedicated desks emerging alongside established asset classes like foreign exchange (FX) and commodities.
Bitcoin’s rally is also a remarkable recovery from its 2022 low of $16,000, following the dramatic collapse of FTX. Despite criticisms regarding energy consumption and concerns over crypto-related crime, analysts are increasingly recognizing Bitcoin’s resilience and growing acceptance. Shane Oliver, chief economist at AMP, noted, “As time goes by, it’s proving itself as part of the financial landscape.”
The rise of Bitcoin has mirrored the performance of crypto-related stocks, with shares of companies like MARA Holdings (a Bitcoin mining company) and Coinbase (a major crypto exchange operator) seeing substantial increases. Bitcoin’s financialization is also accelerating, with futures, options, and ETFs gaining increasing traction. High-profile endorsements, such as Trump’s crypto business initiative, Elon Musk’s vocal support, and Russian President Vladimir Putin’s acknowledgment that “No one can prohibit it,” highlight the growing global acceptance of Bitcoin and other digital assets.
As Bitcoin continues to break new records, its integration into the global financial system appears inevitable. With increasing institutional momentum, regulatory support, and growing market dynamics, Bitcoin is well on its way to solidifying its place as a mainstream financial asset.