Bitcoin has crossed the six-digit threshold for the first time, hitting an all-time high of $103,679 before stabilizing at $101,971, driving its market cap above $2 trillion.
Background
- In the early hours of December 5, Bitcoin reached a new milestone, trading as high as $103,679 before a slight retracement to $101,971 at the time of writing, marking a 5.7% increase over the past day
- Bitcoin's market capitalization has now surpassed $2 trillion, contributing to a 1.5% increase in the global crypto market cap, which is nearing $4 trillion
- Daily trading volume for Bitcoin also surged, reaching $153 billion earlier in the day
- This price surge of Bitcoin is attributed to a combination of factors, including pro-Bitcoin Donald Trump US election victory, pro-crypto Paul Atkins now appointed as incoming SEC Chair, and strategic whale activity on major exchanges
Why should you pay attention?
- Historic Milestone: Crossing the $100,000 mark solidifies Bitcoin's dominance as the leading cryptocurrency and signals growing investor confidence
- Political Tailwinds: The election of Donald Trump as the 47th President of the United States has ignited optimism within the crypto community
- His pro-crypto stance and appointment of Paul Atkins, a known blockchain advocate, as SEC chair are seen as catalysts for market growth
- Whale Activity: On-chain data highlights significant whale purchases on Binance and Coinbase, which appear to have been coordinated to push Bitcoin past $100,000
- Market Volatility: Despite the gains, market volatility persists
- Over $673 million in liquidations have occurred in the past 24 hours, including $179.62 million tied to Bitcoin positions
Who said what?
- CryptoQuant analyst "Crypto Dan" wrote:
“When Bitcoin reached $100,000, there were two purchases by whales on the Binance exchange. This can be seen as an intentional move, with whales on both Binance and Coinbase taking turns to raise Bitcoin”
- Donald Trump, U.S. President-elect, praised incoming SEC chair Paul Atkins in a Truth Social post:
“He recognizes that digital assets and other innovations are crucial to Making America Greater Than Ever Before”
Zooming out
- Bitcoin's six-digit achievement marks a pivotal moment in the history of crypto, cementing its status as a major financial asset
- The broader crypto market is buoyed by political optimism, particularly in the United States, where a pro-crypto administration may usher in regulatory clarity
- As Bitcoin stabilizes above $100,000, market participants are eager to see whether this milestone will spark a prolonged rally or trigger a consolidation phase just as it did a few months ago when BTC initially broke above the previous $69,000 high
