Key Points
- Bitcoin (BTC) price has hit a record high of $103,900, surpassing the $100,000 milestone.
- Pro-crypto political and institutional developments in 2024 have contributed to Bitcoin’s growth.
Bitcoin (BTC) achieved a historic milestone as its price surged past the long-awaited $100,000 mark, reaching an all-time high of $103,900 on December 5.
At the time of the event, Bitcoin was trading at $102,530, reflecting a 6.2% gain over the previous 24 hours.
Trading Volume and Market Capitalization
This remarkable rally was accompanied by a 70% increase in 24-hour trading volume to $117.5 billion.
The crypto fear and greed index registered an “extreme greed” level of 84, indicating high investor enthusiasm.
On the same day, Bitcoin’s market capitalization also saw a significant increase, crossing the $2 trillion mark.
This increase followed April’s halving event, which reduced miners’ rewards, leading to increased scarcity and bullish momentum.
Political and Institutional Developments
The year 2024 has seen several important political and institutional developments for Bitcoin.
After winning the presidential elections in November, Donald Trump nominated Paul Atkins, a known crypto advocate, to chair the SEC.
Atkins’ potential replacement of Gary Gensler signals a potential shift away from regulatory roadblocks, which many believe have hampered the cryptocurrency market.
In addition, Trump’s appointments of hedge fund manager Scott Bessent and Cantor Fitzgerald CEO Howard Lutnick to key financial roles are being seen as a significant step towards shaping a crypto-friendly administration in the US.
Institutional interest in Bitcoin has also reached unprecedented levels in 2024, largely due to the SEC’s approval of spot Bitcoin ETFs earlier in the year.
Since their launch, these funds have recorded $32.29 billion in net inflows.
According to data by SoSoValue, spot Bitcoin ETFs recorded a cumulative net inflow of $556.82 million on December 4.
On the trading front, Bitcoin’s price movements continue to show a correlation with the S&P 500, sparking debates about its classification as a “high-leveraged tech stock”.
However, analysts at Santiment have stated that a decoupling of Bitcoin from equities would signal even greater bullish momentum for the cryptocurrency.
“Historically, crypto has flourished when there is little to no reliance on world stock markets,” they explained on X.
Altcoin Trading
While Bitcoin’s dominance has been the main focus, altcoins like Ether, XRP, BNB, and Solana are gradually gaining momentum.
Ether has shown particularly strong performance, registering a 4.3% gain in the last 24 hours.
The altcoin market briefly faltered as traders redirected funds into Bitcoin to capitalize on the $100K milestone.
With Bitcoin up 150% year-over-year, bullish investors are now setting their sights on a new target of $150,000.
