On Wednesday evening in New York, the long-held dream of perpetual crypto bulls became a reality: Bitcoin finally surpassed the $100,000 mark.
This breakthrough came after a month-long rally during which the largest and oldest cryptocurrency repeatedly approached—only to shy away from—the highly anticipated milestone. The surge has been fueled by growing optimism within the digital asset industry, driven by expectations that U.S. President Donald Trump’s administration will adopt more favorable policies toward cryptocurrencies compared to the stricter regulatory approach of his predecessor.
A Symbolic and Strategic Victory
The momentum behind this rally gained tangible support on Wednesday when Trump announced his intention to nominate Paul Atkins, a known cryptocurrency advocate, to replace Gary Gensler as Commissioner of the U.S. Securities and Exchange Commission (SEC).
Dan Gallagher, Chief Legal Officer at Robinhood Markets Inc., publicly endorsed the nomination, stating, “Paul Atkins is well-suited for the role.” Gallagher, who had previously withdrawn his own candidacy for an SEC position in November, expressed hope that Atkins would help clarify regulatory uncertainties through balanced enforcement.
With this price breakthrough, Bitcoin’s market capitalization has soared beyond $2 trillion, making it a larger investment asset than most publicly traded companies—surpassing all but a few giants like NVIDIA, Apple, and Alphabet (Google’s parent company). This valuation also exceeds the government bond markets of countries like Spain and Brazil and nears the total market cap of the UK’s FTSE 100 index.
Fadi Aboualfa, Head of Research at crypto custody firm Copper Technologies Ltd., remarked, “Bitcoin hitting $100,000 signals the next phase of the bull market. It now appears resilient to everything except external shocks.”
After breaking the barrier, Bitcoin briefly climbed to $103,800.
The Road to Six Figures
Even before Trump’s election, many in the crypto community viewed the $100,000 milestone as inevitable. Prominent figures like hedge fund manager Anthony Scaramucci and billionaire Michael Novogratz had publicly predicted Bitcoin would reach this level by year-end. Major financial institutions, including JPMorgan Chase and Goldman Sachs, had also forecasted a six-figure Bitcoin as far back as four years ago.
Bitcoin was created in the aftermath of the 2008 global financial crisis by the pseudonymous Satoshi Nakamoto and launched in 2009 as a peer-to-network designed to operate outside government control. The true identity of Nakamoto—whether an individual or a group—remains one of crypto’s enduring mysteries.
Year-to-date, Bitcoin has gained 135%, but such dramatic price swings are nothing new. From just $0.30 in late 2010, Bitcoin has experienced extreme volatility: it surged 1,375% in 2017, 5,428% in 2013, and 1,317% in 2011. Conversely, it fell 64% in 2022.
Overcoming Challenges and Criticism
Bitcoin’s journey from a few cents to $100,000 required overcoming what traders often refer to as “FUD”—Fear, Uncertainty, and Doubt. The broader crypto asset class has been marred by scandals involving fraudsters, ransomware attacks, money launderers, and hackers.
The March surge to over $73,000 marked a full recovery from one of Bitcoin’s most dramatic downturns. Between November 2021 and November 2022, Bitcoin lost nearly 80% of its value amid a series of high-profile collapses, including the FTX exchange and crypto lenders Genesis and Celsius. The aftermath saw FTX founder Sam Bankman-Fried sentenced to 25 years in prison for fraud, and Binance founder Changpeng Zhao receiving a four-month sentence for failing to implement anti-money laundering controls.
Despite this rocky history, Bitcoin’s acceptance within mainstream finance continues to grow. As the asset becomes more institutionalized, its potential influence on the global financial system increases.
The ETF Effect
Even before the political shift, Bitcoin’s 2024 rally was significantly driven by the approval of spot Bitcoin Exchange-Traded Funds (ETFs) in January. These followed a prolonged legal battle between one issuer and the SEC.
Led by Wall Street heavyweights like BlackRock, Fidelity, and crypto-native firm Grayscale Investments, these ETFs now hold approximately $100 billion in assets, accounting for roughly 5% of all circulating Bitcoin. This institutional endorsement has provided unprecedented liquidity and legitimacy to the market.
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Frequently Asked Questions
What caused Bitcoin to reach $100,000?
A combination of political optimism, institutional investment via ETFs, and growing mainstream acceptance drove Bitcoin to this milestone. The anticipation of favorable U.S. regulatory policies also played a significant role.
Is Bitcoin’s price sustainable at this level?
While past performance doesn’t guarantee future results, many analysts believe Bitcoin’s growing institutional adoption and finite supply provide a foundation for longer-term stability. However, volatility remains a inherent trait.
How does Bitcoin’s market cap compare to traditional assets?
At over $2 trillion, Bitcoin’s market capitalization exceeds that of most national bond markets and is larger than all but a handful of public companies. It is now considered a major global asset class.
What are the risks of investing in Bitcoin?
Risks include regulatory changes, market volatility, cybersecurity threats, and macroeconomic factors. Investors should conduct thorough research and consider their risk tolerance before investing.
Can Bitcoin be used for everyday transactions?
While possible, Bitcoin is primarily seen as a store of value rather than a medium for daily transactions due to its price volatility and scaling limitations. Some merchants accept it, but usage is not yet widespread.
What role do ETFs play in Bitcoin’s popularity?
ETFs make it easier for traditional investors to gain exposure to Bitcoin without directly holding it, thereby increasing demand and liquidity. They serve as a bridge between conventional finance and the crypto world.