Bitcoin rose above $100,000 for the first time on Thursday, a milestone that even skeptics saw as a ”coming of age” for cryptocurrencies, as investors bet on a pleasant US government to cement cryptocurrencies’ place in financial markets.
The total value of the cryptocurrency market has nearly doubled in the year to date and peaked just before $3.8 trillion, according to data provider CoinGecko. By comparison,Apple alone is worth about $3.7 trillion, according to Reuters.
Up more than 50% after trump’s victory
Bitcoin has more than doubled in value this year and is up more than 50% in the four weeks since Donald trump’s landslide election victory, which also elected several pro-crypto lawmakers to Congress.
After topping $100,000 on Thursday morning in Asia, it soon surpassed $103,000 and reached an all-time high of $103,619, up about 6%.
at 12:00 Greek time it trades at 102,700 dollars with a daily increase of 4%.
“We’ve seen a change of scenery,” said Mike Novogratz, founder and CEO of US crypto firm Galaxy Digital.
“Bitcoin and the entire digital asset ecosystem is poised to enter the financial mainstream – this momentum is fueled by institutional adoption, advances in tokenization and payments, and a clearer regulatory path,” he said.
Trump embraced digital assets during his election campaign, promising to make the united States “the crypto capital of the planet” and remove the national bitcoin reserve.
“We were basically trading sideways for about seven months, and right after November 5, US investors continued to buy hand in hand,” said Joe McCann, managing director and founder of Asymmetric, a digital asset hedge fund in Miami.
The role of Atkins
On Wednesday, Trump said he would nominate Paul Atkins to head the Securities and Exchange Commission.
Atkins, a former SEC commissioner, has been involved in crypto policy as co-chair of the Token Alliance, which works to develop best practices for digital asset issuances and trading platforms.
“Atkins will bring a fresh viewpoint, based on a deep understanding of the digital asset ecosystem,” said Kristin Smith, CEO of the Blockchain Association.
“We look forward to working with him …and harnessing – together – a new wave of American innovation in crypto,” he emphasized.
Several crypto companies, including Ripple, Kraken and Circle, are also seeking a seat on Trump’s promised crypto council.
From $16,000 in 2022 to $100,000 in 2 years
The six-figure move is an impressive return from plunging below $16,000 in 2022, when the sector was dependent on the collapse of the FTX exchange. Founder Sam Bankman-Fried was later jailed.
Analysts say the growing adoption of bitcoin by major investors this year is the driving force behind the record rally.
US-listed bitcoin exchange-traded funds were approved in January and have been a conduit for large-scale buying, with more than $4 billion flowing into these funds since the election.
“About 3% of the total bitcoin supply that will ever exist in 2024 has been bought by institutional money,” said Geoff Kendrick, global head of digital asset research at Standard Chartered.
“Digital assets, as an asset class, are leveling off,” he said.
“If you go a few years on the trading floors, you’ll have a sales and trading desk …that will sit alongside FX, prices and commodities,” he said.
Stock rally also related to crypto
Crypto-related stocks have soared along with the price of bitcoin, with shares of bitcoin miner MARA Holdings and Coinbase up 65% in november.
Software company Microstrategy, which has repeatedly raised funds to buy bitcoin and held about 402,100 bitcoins on December 1, has gained 542% this year.
Trump himself unveiled a new crypto venture, World liberty Financial, in September, though details were scarce, and billionaire Elon Musk, a key Trump ally, is also a proponent of cryptocurrencies.
Who can ban cryptocurrencies?
The cryptocurrency industry has been criticized for it’s massive energy use, and there are still concerns about the security of cryptocurrency transactions.
Still, as Russian President Vladimir Putin said at an investment conference on Wednesday: “Who can ban it? Nobody.” And perhaps her longevity is a testament to her level of resilience.
“Over time it’s proving to be part of the financial landscape,” said Shane Oliver, chief economist and head of investment strategy at AMP in Sydney.
“It’s very hard for me to put a price on it… it’s anyone’s guess. But there is a dynamic aspect to it and right now the momentum is up,” he said.
- How is institutional adoption influencing the cryptocurrency market according to mike Novogratz?
Interview between Time.news Editor and Crypto Expert Mike Novogratz
Time.news Editor (TNE): Welcome, everyone, to this special edition of Time.news. Today, we have the privilege of speaking with Mike Novogratz, founder and CEO of Galaxy Digital and a recognized authority in the cryptocurrency industry. Mike, thank you for joining us!
Mike Novogratz (MN): Thank you for having me! It’s an exciting time for cryptocurrencies, and I’m thrilled to share insights.
TNE: Absolutely! Bitcoin has just surpassed $100,000 for the first time. What does this milestone mean for the cryptocurrency market, especially for skeptics who said it would never get to this point?
MN: This is indeed a “coming of age” moment for Bitcoin and cryptocurrencies at large.even skeptics must acknowledge that a significant shift has occurred. This price surge signals institutional interest,regulatory acceptance,and public awareness. Its showing that cryptocurrencies are now being taken seriously as a financial asset.
TNE: You mentioned institutional interest. Can you elaborate on how institutional adoption has affected Bitcoin’s rise?
MN: Certainly.Institutional adoption has been a game-changer. Historically, Bitcoin was considered a volatile asset for retail investors. However, now, with more hedge funds, family offices, and major financial institutions investing in Bitcoin, it’s gaining credibility. This year alone, Bitcoin’s value has more than doubled, especially post-trump’s election, which brought in several pro-crypto lawmakers. This aligns with a broader trend where financial institutions are looking to diversify their portfolios with digital assets.
TNE: It’s amazing to see bitcoin’s growth, especially in comparison to major companies. CoinGecko indicates the total cryptocurrency market neared $3.8 trillion, closely rivaling Apple’s market valuation. What does that say about the future of cryptocurrencies in the financial ecosystem?
MN: The fact that the entire crypto market is comparable to a tech giant like Apple is monumental. It signifies that the cryptocurrency space is maturing and becoming a cornerstone of the financial landscape. As we advance in areas like tokenization and payment solutions, I believe we’ll see even greater integration of digital assets into everyday financial transactions.
TNE: Recently, Bitcoin shot up to an all-time high of over $103,000.What factors do you think drove this particular surge?
MN: Several factors have contributed to this spike. Firstly, the overall positive sentiment in the market plays a critical role. People are increasingly viewing Bitcoin as a hedge against inflation. Secondly, the advancements in technology related to cryptocurrencies, and also the supportive political environment, have strengthened investor confidence. It’s a perfect storm of innovation, regulation, and recognition.
TNE: Some say that with Bitcoin and other cryptocurrencies entering the mainstream, we’re on the verge of a financial revolution. Do you agree with that sentiment?
MN: Absolutely! We are witnessing the beginning of a financial revolution characterized by decentralization and democratization of finance. Technologies like blockchain are redefining our understanding of trust and value. If we continue this trajectory, we may see financial services significantly transformed in a very short period.
TNE: Mike, what advice would you give to new investors looking to engage with cryptocurrencies in this booming market?
MN: My advice would be to educate yourself first. Understand the technology, the market dynamics, and always invest an amount you’re willing to lose. The world of cryptocurrencies can be volatile, but with thorough research and a strategic approach, it holds significant potential.
TNE: Great insights, Mike! Thank you for your time and expertise. The cryptocurrency world is undoubtedly fascinating, and we look forward to seeing how it continues to evolve.
MN: Thank you for having me, and I appreciate the platform to discuss these crucial developments in the crypto space.