Bitcoin, which has been trading sideways for half a month, finally broke through $100,000 on the morning of December 5, 2024, Beijing time.
What factors have boosted Bitcoin to break the historic mark of $100,000, Golden Finance summarizes as follows:
1. Trump nominated crypto champion Paul Atkins as the new chairman of the SEC
On December 4, Trump nominated Paul Atkins as chairman of the US SEC. Paul Atkins is a public crypto advocate. Paul Atkins is the founder of Patomak Global Partners, which includes crypto information, and Paul Atkins serves as an advisor to several crypto projects.
Paul Atkins has served as co-chair of the Token Alliance since 2017. The Token Alliance is an industry-led initiative of former regulators, industry experts, and lawyers to drive the mainstreaming of digital assets. He is also a member of the advisory board of the Digital Chamber of Commerce, a leading cryptocurrency advocacy organization based in Washington, D.C.
In the early morning of December 5, after the announcement of Trump’s nomination of Paul Atkins as chairman of the US SEC, Bitcoin immediately rose from around $95,000 to $99,000, breaking through the historic mark of $100,000 after the news fermented.
2. Powell: Bitcoin’s competitor is gold rather than the dollar
On 4 December, Powell said in his speech that the Fed has not yet achieved its goal of reducing inflation, but is still making progress on the downward trend in inflation. The rise in prices has displeased the public, and the employment situation is good in terms of the number of people employed, but the low-income class is under pressure, and these speeches are still in line with people’s expectations for another 25bp rate cut in the United States in December. At the same time, he also mentioned in his speech that bitcoin is considered a speculative asset, and its main competitor is gold instead of the dollar.
3. Russian President Vladimir Putin is unequivocally pro-cryptocurrency: no one can ban Bitcoin
Russian President Vladimir Putin said at the Russia Calling Investment Forum on December 4 that no one can stop the development of bitcoin and that “who can ban bitcoin? No one can. Who can prohibit the use of other electronic payment methods? No one can, either. Because these are all new technologies. Regardless of the future of the dollar, these tools will evolve in one way or another, as everyone strives to reduce costs and improve reliability. ”
Putin also questioned the need for Russia to hold foreign exchange reserves, “A reasonable question is: if foreign exchange reserves are so easy to lose, why accumulate them?” This remark may imply that Russia’s reserve of bitcoin may be a better option.
Last week, Putin officially signed a major law that explicitly identifies cryptocurrencies as “property” and sets out a comprehensive tax framework for cryptocurrency trading and mining activities. The law, which will come into effect on January 1, 2025, marks a key step in Russia’s approach to cryptocurrency regulation and taxation.
4. Stablecoins continued to be issued, with a market value of more than $200 billion
The issuance of stablecoins has always been a sign of an influx of hot money, and it also represents issuers’ optimism about the future of the overall crypto market. According to the market, the total market value of stablecoins has exceeded $200 billion and is now trading at $200,129,553,664, a record high, of which the market value of Tether’s dollar stablecoin USDT is about $135.77 billion. Since Trump’s victory, Tether has issued an additional $17 billion in USDT.
5. South Korea’s crypto market plummeted, and a large number of funds bottomed out
On the evening of December 3, South Korean President Yoon Suk-yeol announced martial law and caused market volatility, and the price of bitcoin on the South Korean upbit exchange fell to about $60,000 at one point, but a large amount of money entered the rush to buy. South Korean traders love high-risk, high-reward products, and since Trump’s election, crypto tokens have traded more than South Korea’s benchmark KOSPI index.
6. Bitcoin halving expectations
Bitcoin’s last halving was in May 2024, and the past three halvings have all been record-breaking. According to the cyclical law, the second half of the crypto bull market has just begun, and 2025 will still be a bull year.
7. Innovation and development of the industry
With the development of the cryptocurrency industry, the combination of AI and Web3 has become a hot spot for industry innovation, attracting many traditional investors and entrepreneurs, and a new application paradigm is gradually unfolding.
