Bitcoin has reached the $100,000 price milestone, marking a historic moment for the cryptocurrency market following a year of remarkable growth.
On Dec. 5, Bitcoin (BTC) broke the psychological $100,000 barrier, just weeks after surpassing the $90,000 mark on Nov. 12, as reported by TradingView.
Shortly after, Bitcoin set a new all-time high of $104,000 at 3:08 a.m. UTC, roughly 90 minutes after breaking the $100,000 threshold.
The surge was fueled by over $31 billion in net inflows from U.S. spot Bitcoin exchange-traded funds (ETFs) and a tightened supply due to Bitcoin’s fourth halving in April.
Donald Trump’s Victory Boosts Bitcoin Rally
Republican Donald Trump’s victory in the U.S. presidential election contributed to Bitcoin’s momentum, alongside speculation of a strategic Bitcoin national reserve and increased corporate adoption led by MicroStrategy’s Michael Saylor.
Additionally, Trump’s Dec. 4 nomination of crypto advocate Paul Atkins to replace Gary Gensler as SEC chair has sparked optimism.
This move could eliminate regulatory barriers that have hindered the crypto sector under the Biden administration.
Trump’s pro-crypto cabinet includes Scott Bessent and Cantor Fitzgerald CEO Howard Lutnick as nominees for Secretary of Treasury and Commerce, respectively, potentially creating the most crypto-friendly administration to date.
Bitcoin Up 126% in 2024
Bitcoin’s value has increased by 126% since Jan. 1, when it traded at $44,000.
Its market capitalization has now reached a record $2 trillion for the first time.
While Bitcoin’s 2024 rally is impressive, it isn’t its most dramatic.
In 2017, Bitcoin soared 1,900%, rising from $1,000 in January to $20,000 in December.
Similarly, between March 2020 and November 2021, it surged 1,250%, climbing from $5,100 to $69,000.
MicroStrategy’s (MSTR) Bitcoin buying spree has generated more than $17 billion in unrealized profits, according to data from MSTR Tracker.
Since 2020, the company has spent over $23 billion acquiring BTC as part of founder Michael Saylor’s unconventional corporate treasury strategy.
This strategy has paid off, with Bitcoin surpassing $100,000 per coin for the first time on Dec. 4.
The company’s BTC treasury is now valued at over $40 billion, according to MSTR Tracker.
Top-Performing Stock in 2024
MicroStrategy’s stock performance has outpaced Bitcoin itself, rising more than 475% year-to-date.
This makes it one of the top-performing stocks in the S&P 500, based on data from Google Finance and Slickcharts.
As of Dec. 5, MSTR has a market capitalization of approximately $92 billion, more than twice the value of its Bitcoin holdings.
Benchmark fintech analyst Mark Palmer raised his price target for MSTR shares from $450 to $650, citing the company’s aggressive buying strategy.
Currently, MSTR trades at about $394 per share, according to Google Finance.
Expanding Bitcoin Holdings
During its Aug. 1 earnings call, MicroStrategy introduced the concept of “Bitcoin yield,” a metric that tracks BTC holdings relative to outstanding shares.
The company committed to a massive three-year BTC buying spree, dubbed the “21/21 Plan,” aiming to raise $21 billion each in equity and debt to fund the effort.
Despite criticism, analysts note that MicroStrategy’s bold strategy has delivered exceptional returns for its shareholders.
“The dramatic impact on the company’s share price has provided ample justification, as its stock has outperformed almost every large company in the US during the past four-plus years,” said Palmer.
With 400,000 BTC as of Dec. 5, MicroStrategy’s Bitcoin-centric approach continues to attract attention and drive significant gains.
President-elect Donald Trump has named Paul Atkins as his choice to lead the U.S. Securities and Exchange Commission (SEC), replacing Gary Gensler.
In a Dec. 4 announcement on Truth Social, Trump highlighted Atkins’ extensive experience, stating:
“Paul is the CEO and Founder of Patomak Global Partners, a risk management consultancy. As Co-Chairman of the Digital Chamber’s Token Alliance since 2017, he has worked on and studied the digital assets industry.”
Trump further praised Atkins’ tenure as SEC Commissioner from 2002 to 2008, saying, “Paul strongly advocated for transparency and protecting investors.”
This nomination fulfills Trump’s campaign promise to appoint a pro-crypto leader to the SEC, a commitment he emphasized during his keynote speech at the Bitcoin 2024 conference in Nashville, Tennessee.
Outgoing SEC Chair Gary Gensler, known for his aggressive stance against cryptocurrencies, resigned on Nov. 21 after months of industry backlash.
Market and Industry Reactions
Gensler’s resignation, coupled with the election results, triggered a surge in crypto markets. Analysts predict that altcoin rallies will extend into 2025 as Atkins assumes office on Jan. 20.
Following Gensler’s exit announcement, several firms, including Bitwise, VanEck, 21Shares, and Canary Capital, filed applications for a Solana ($SOL) exchange-traded fund (ETF).
Katrina Paglia, Chief Legal Officer at Pantera, stated that SEC lawsuits targeting blockchain projects would likely “quietly go away” under new leadership.
Industry Challenges Under Gensler
During his tenure, Gensler’s SEC initiated 104 lawsuits against crypto firms from 2021 to 2023, costing the industry $426 million in legal fees.
The Blockchain Association criticized the lack of clear regulations, writing in October 2024, “The time of law-fare against our industry must end.”
Atkins’ appointment signals a potential shift toward more industry-friendly policies.
Bitcoin saw a notable surge at the Dec. 2 Wall Street open, climbing over $2,000 within two hours.
The rally came after MicroStrategy announced it had acquired nearly $1.5 billion worth of Bitcoin, adding to its already substantial holdings.
Data from Cointelegraph Markets Pro and TradingView highlighted the sharp increase in BTC price, a response that deviated from its usual muted reactions to similar news.
MicroStrategy’s filing with the U.S. Securities and Exchange Commission on Dec. 2, later confirmed by CEO Michael Saylor, detailed the week-long acquisition up to Dec. 1.
Ki Young Ju, CEO of CryptoQuant, commented on the scale of MicroStrategy’s investment.
“$MSTR spent $13.5B on 149,900 BTC, with holdings up $21.5B in 30 days,” he noted on X.
“Bitcoin market can’t absorb tens of billions short-term without driving prices up, making returns nearly inevitable. If BTC breaks $100K, the gains could grow even more as it enters price discovery.”
Trading firm QCP Capital also weighed in, mentioning an upcoming vote by Microsoft shareholders on Dec. 10 regarding adding Bitcoin to the tech giant’s balance sheet.
“Could this be the catalyst BTC needs to break 100k before year end?” the firm speculated.
QCP added that major Microsoft shareholders, such as Vanguard, BlackRock, and Fidelity, already have crypto exposure through investments in MicroStrategy, Coinbase, and similar firms.
If the proposal passes, it could further bolster Bitcoin and related investments.
At the time of writing, Bitcoin hovered around $96,000, after briefly testing support below $95,000.
Despite some volatility, sentiment among traders remained bullish, with $100,000 as the primary target.
“Nice corrective upwards consolidation here resetting RSI & other indicators,” trader Roman noted on X.
“We’re also seeing bullish divergences form while building volatility for higher. It’s a matter of time before 100k breaks!”
Michael Saylor, chair of MicroStrategy and a prominent Bitcoin advocate, urged Microsoft’s board of directors to embrace Bitcoin, arguing that the company could boost its market cap by nearly $5 trillion.
In a rapid-fire presentation lasting just over three minutes, Saylor presented 44 slides outlining why Microsoft should adopt Bitcoin.
“Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave,” Saylor stated in a Dec. 1 video of his pitch.
He suggested the firm convert its cash flows, dividends, stock buybacks, and debt into Bitcoin, claiming:
“If you do that, you’ll add hundreds of dollars to the stock price. You can create trillions of dollars of enterprise value. You can strip away risk from your shareholders.”
Saylor projected that Microsoft’s share price could increase by up to $584 over the next decade if Bitcoin reached $1.7 million by 2034.
This strategy, according to Saylor, could add $4.9 trillion to Microsoft’s valuation, propelling it beyond its current $3.18 trillion market cap as the world’s third most valuable company, trailing Apple and Nvidia.
Bitcoin has already surged 120% this year, nearing the $100,000 mark.
Since 2020, MicroStrategy has purchased 386,700 BTC for $21.9 billion, now valued at nearly $37.6 billion.
MicroStrategy shares have soared 465.5% in 2024, with the stock reaching $421.88 in late November, a new all-time high since the dot-com era.
Saylor noted growing political and public support for Bitcoin, citing statements from incoming U.S. President Donald Trump and Bitcoin-backed products from major Wall Street firms.
He proposed Microsoft invest $100 billion annually in Bitcoin, asserting, “It makes a lot more sense to buy Bitcoin than to buy your own stock back or to hold bonds.”
“It’s time for Microsoft to evaluate its Bitcoin strategic options,” Saylor concluded. “So do the right thing for the world and adopt Bitcoin.”
Spot Ether exchange-traded funds (ETFs) in the United States hit a new record for daily inflows on Nov. 29.
Data from Farside reveals that $332.9 million flowed into the nine spot Ether ETFs on that day, surpassing the previous record of $295.5 million set on Nov. 11 by $37.4 million.
BlackRock Leads the Inflows
BlackRock, the world’s largest asset manager, accounted for $250.4 million of the total daily inflows.
Nate Geraci, president of ETF Store, highlighted in a Nov. 29 post on X that BlackRock’s iShares Ethereum Trust (ETHA) has now amassed over $2 billion in inflows since its launch on July 23.
At the time of writing, Ether was trading at $3,662, marking a 1.88% increase since Nov. 28, according to CoinMarketCap.
Pseudonymous crypto trader Pentoshi commented in a Nov. 29 X post, “Now we have early signs of this happening in ETH, as the flows begin to finally pick up, and sellers begin to get absorbed. It only takes time.”
ETH ETFs Overtake BTC ETFs
Several crypto analysts noted that the Ether ETF inflows were higher than those of spot Bitcoin ETFs, which brought in $320 million on the same day.
Felix Hartmann, founder of Hartmann Capital, stated that this indicates Wall Street’s growing interest in the “alt rotation.”
“ETH ETF flows have flipped BTC ETF flows for the first time,” observed crypto commentator Ethereum Vibin in an X post.
Consistent Positive Inflows
This marks the first instance where Ether ETFs recorded higher inflows than Bitcoin ETFs on days when both had inflows.
Notably, Ether ETFs have maintained positive inflows even during days of Bitcoin ETF outflows.
Between Nov. 22-27, Ether ETFs recorded $224.9 million in net inflows, while Bitcoin ETFs tallied only $35.2 million, largely due to outflows on Nov. 25.
This trend follows Ethereum’s recent success in a U.S. court, bolstering confidence in its decentralized finance (DeFi) ecosystem.
Bitcoin surged to multiday highs on Nov. 29 as traders eyed a potential move to $100,000.
BTC price eyes $100K
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching $97,539 on Bitstamp.
The cryptocurrency recovered from its recent dip to $90,800, fueling optimism about a six-figure price milestone.
Commentator Byzantine General noted a bullish setup, with lower open interest (OI) on exchanges supporting the case for further gains.
“Open interest reset, support held up.
Looks to me like we’re gonna take out the local highs and potentially take a stab at piercing 100k,” he wrote on X.
“A lot of the passive supply already got taken out the previous attempt, so there’s a pretty good chance that we see 100k soon.”
Trader Jelle echoed this sentiment, stating that a six-figure price was “in sight.”
“Bitcoin is pushing for a breakout,” he said on X, sharing a chart of BTC/USD attempting to breach a trendline established after its Nov. 22 all-time high of $99,800.
Jelle compared the current price action to October 2023, when BTC/USD broke through $30,000 and continued to new highs five months later.
“A $100K $BTC is in reaching distance,” said fellow trader Daan Crypto Trades.
“Going to take some time getting used to a 6-figure Bitcoin.
But I like it.”
Bitcoin and gold comparisons emerge
Others focused on Bitcoin’s potential to follow gold’s recent strong performance.
As previously reported, Bitcoin’s price action could be trailing gold by roughly three months.
Charles Edwards, founder of Capriole Investments, highlighted the upside potential.
“In just 16 weeks, gold gained $3.8T this summer.
Bitcoin from $100K to $200K is just $2T,” he explained.
He added, “BTC is a superior, more liquid, fungible and divisible asset that trades 24/7.”
Bitcoin could attract an additional $2 trillion in investments by 2025, fueled by expectations of increased global liquidity.
The United States Federal Reserve is projected to expand the global money supply to over $127 trillion in 2025, up from the current $107 trillion, an 18% increase, according to Jamie Coutts, chief crypto analyst at Real Vision.
“BTC projection to $132,000 on M2 money supply growth,” Coutts wrote, highlighting the potential impact of a $20 trillion liquidity injection on Bitcoin prices.
Historical trends suggest Bitcoin could capture about 10% of this new liquidity, translating to $2 trillion in fresh investments.
“Global M2 bottomed at $94T in Q4 2022 and has since climbed to $105T,” Coutts explained in a Nov. 28 X post.
“During this period, Bitcoin’s market cap 5x’ed, adding $1.5T.
In other words, 10% of the new money supply has leaked from the fiat system into the emerging global reserve asset of Bitcoin.”
Coutts projects the global M2 money supply, which measures cash and short-term bank deposits, will peak on Jan. 26, 2026.
This monetary expansion could propel Bitcoin to new heights.
Bitcoin’s consistent 113% annual returns make it increasingly attractive to institutional investors, particularly during periods of monetary debasement.
Coutts suggests these factors could drive Bitcoin’s price as high as $150,000 during 2025.
Ryan Lee, chief analyst at Bitget Research, also predicts a potential peak between late 2024 and mid-2025, with price targets ranging from $118,928 to $150,000.
VanEck, an asset management giant, has an even more bullish outlook, forecasting Bitcoin prices exceeding $180,000 within the next 18 months, bolstered by growing market optimism.
However, in the short term, Bitcoin faces resistance above $98,300.
The Russian government is moving quickly to implement new cryptocurrency taxes as Bitcoin reaches record highs against the ruble.
On Nov. 27, Russia’s Federation Council, the upper house of parliament, approved a federal bill introducing new tax regulations for cryptocurrency transactions.
The legislation recognizes digital currencies as property and imposes a 13%–15% personal income tax on cryptocurrency sales.
It also exempts Russian crypto miners from value-added tax (VAT) on mined coins.
Legislation Overview
The bill, which passed three readings in the State Duma before Federation Council approval, now awaits President Vladimir Putin’s signature to become law.
Once signed, it will take effect upon official publication.
The bill defines digital currency as property, including those used as payment under foreign trade agreements within Russia’s experimental legal crypto regime.
Reporting Requirements and Penalties
Russian crypto miners are required to report their activities to local authorities.
Failure to comply will result in fines of 40,000 rubles (approximately $360).
However, services provided by authorized mining infrastructure operators will remain untaxed within Russia.
Bitcoin Hits Record Highs Against the Ruble
The timing of the Federation Council’s approval coincides with Bitcoin’s historic highs against the ruble.
On Nov. 27, Bitcoin reached a new all-time high of approximately 11 million rubles, according to Coinbase data.
This surge is driven by Bitcoin’s global rally, nearing $100,000, and the ruble’s continued depreciation against the U.S. dollar.
The value of the U.S. dollar against the ruble recently hit a multiyear high of 113 rubles per dollar, levels last seen in March 2022 during the onset of Russia’s military actions in Ukraine.
As of now, $1 equals 111 rubles, a 25% increase over the past year, according to TradingView data.
Related Developments
Russia is also considering limiting crypto mining in 13 regions to conserve electricity.
More lower-income households are using profits from crypto investing to secure mortgages, according to a report by research economists at the U.S. Treasury.
In their findings, researchers Samuel Hughes, Francisco Ilabaca, Jacob Lockwood, and Kevin Zhao stated, “Crypto sales may have supported access to larger mortgages through bigger down payments.”
They added, “The increase in borrowing is especially striking among low-income households in high crypto exposure areas.”
The report revealed that the percentage of low-income households with mortgages in high crypto-exposed areas rose by over 250%.
Additionally, the average mortgage balance in these areas increased significantly, climbing from approximately $172,000 in 2020 to about $443,000 in 2024—a 150% jump.
“Zip codes with the highest crypto exposure saw the largest increase in mortgage and auto loan originations and balances over subsequent years,” the report noted.
To identify high crypto exposure areas, the study used tax data, classifying a “high-crypto” zip code as one where more than 6% of households reported a crypto tax event.
However, the report raised concerns about financial stability.
Low-income households in these high-crypto areas reported mortgage debt-to-income ratios significantly above recommended levels, suggesting potential financial vulnerability.
“High crypto exposure may be associated with behavior that may contribute to financial instability,” the researchers warned.
Despite these risks, delinquency rates in these areas have remained low, indicating no immediate signs of distress.
Nonetheless, the report cautioned that high leverage in these households could pose future risks if economic conditions deteriorate.