Bitcoin has reached a significant milestone by surpassing the $100,000 mark for the first time in its history. This surge in price can be attributed to a variety of factors, including institutional demand, corporate accumulation, and the anticipation of crypto-friendly policies under the upcoming presidency of Donald Trump.
Year-to-date, bitcoin has surged by approximately 130%, pushing its market capitalization to nearly $2 trillion. To put this into perspective, major companies like Nvidia, Apple, Microsoft, Google, and Amazon have market caps ranging from $2.2 trillion to $3.5 trillion. In comparison, the total market capitalization of all the gold in the world is around $17.7 trillion.
One of the key drivers behind this rally was the introduction of spot-based bitcoin exchange-traded funds (ETFs) by asset management giants like BlackRock and Fidelity in early 2024. These ETFs have been highly successful, attracting around $30 billion in assets under management in less than a year.
Although the rally in bitcoin stalled for a period earlier this year due to regulatory uncertainty surrounding the U.S. presidential election, the victory of crypto-friendly Donald Trump in early November reignited the momentum. Bitcoin quickly soared past its previous high of $73,500 and continued to climb, surpassing $100,000 in a matter of minutes.
Corporate adoption has also played a significant role in bitcoin’s upward trajectory, with companies like MicroStrategy leading the way. Since August 2020, MicroStrategy has been steadily increasing its bitcoin holdings and currently holds 386,700 tokens valued at over $38 billion. This aggressive bitcoin accumulation strategy has inspired other publicly traded companies, such as U.S.-listed Semler Scientific and Japan-listed Metaplanet, to follow suit. Even tech giant Microsoft is considering implementing a bitcoin treasury strategy.
Overall, the combination of institutional demand, corporate accumulation, and positive regulatory developments has propelled bitcoin to new heights. As the cryptocurrency continues to gain mainstream acceptance and adoption, its future outlook remains bright.