Quick Take:
- Bitcoin broke through the $100,000 barrier late Wednesday, achieving a new peak in its ongoing rally.
Bitcoin has soared to new heights, breaching the $100,000 threshold amid a sustained bullish market trend. The cryptocurrency has seen a near 6% increase within the last day, with a staggering 47% growth over the past month and an impressive 67% surge since early October when prices hovered around $60,000.
The ascent of Bitcoin began well before the recent U.S. presidential election, driven by a surge in demand for digital currencies as both an inflation hedge and a long-term investment. The market’s reaction to Donald Trump’s election victory last month has been overwhelmingly positive, with experts suggesting that his administration might usher in more favorable regulatory conditions for cryptocurrencies.
The momentum in Bitcoin’s price has been significantly influenced by institutional and corporate investments. Notably, MicroStrategy, the largest holder of Bitcoin among publicly traded companies, disclosed in November the purchase of an additional 15,400 BTC for $1.5 billion, signaling strong corporate faith in Bitcoin’s future. MicroStrategy now holds approximately 402,100 BTC, with a current valuation around $40.5 billion.
Following this trend, other corporations are also turning to Bitcoin for their treasury reserves. Acurx Pharmaceuticals, listed on Nasdaq, recently announced a board-approved plan to invest up to $1 million in Bitcoin. CEO David P. Luci highlighted Bitcoin’s role as a “functional store of value” due to its limited supply and resistance to inflation, clarifying that this strategy is financial in nature and separate from their drug development objectives.
Moreover, the introduction of Bitcoin spot exchange-traded funds (ETFs) in the U.S. has played a crucial role in pushing Bitcoin above the $100,000 mark. Data from Glassnode indicates that November was a record-breaking month for these ETFs, with total inflows reaching $6.1 billion, of which $5.4 billion flowed into BlackRock’s IBIT fund alone.
As Bitcoin continues to redefine its value and place in the global financial ecosystem, its trajectory suggests a robust confidence from both retail and institutional investors in its potential as a transformative asset class.