On December 5, 2024, Bitcoin made history by surging past the $100,000 mark for the first time, reaching an all-time high of $103,400 per coin—an intraday gain of 7.81%. This monumental milestone pushed Bitcoin’s total market capitalization above $2 trillion, marking a new era in digital asset adoption. The rally reflects growing institutional interest, regulatory evolution, and macroeconomic shifts favoring alternative stores of value.
Over the past year, Bitcoin has appreciated nearly 140%, accelerating from $68,000 in early November to surpass $100,000 within just one month. This rapid ascent underscores strong market momentum driven by spot Bitcoin ETF inflows, geopolitical developments, and shifting central bank narratives.
Institutional Adoption Accelerates
The launch of U.S. spot Bitcoin ETFs on January 10, 2024, marked a turning point. With initial assets under management around $28 billion, the collective value of these funds has now ballooned to approximately $82 billion—nearly tripling in less than a year.
Leading the charge is BlackRock’s IBIT fund, which set a new record with $4.1 billion in single-day trading volume. The following day, it absorbed $1.1 billion in net inflows—the largest daily capital injection ever recorded for a crypto ETF. This surge signals robust confidence among institutional investors and paves the way for broader financial integration.
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Corporate Treasury Moves: Meitu Exits Crypto with $57M Profit
In a strategic shift ahead of Bitcoin’s breakthrough, Meitu Company (01357.HK) announced it had fully liquidated its cryptocurrency holdings as of December 4, 2024. The sale included 940 BTC and 31,000 ETH, generating approximately $79.6 million in profits (about ¥571 million RMB).
Originally purchased in March and April 2021 for a total of $100 million, Meitu’s decision to exit at peak valuation highlights a growing trend among public companies: using crypto investments to generate capital for core business expansion.
The board plans to distribute roughly 80% of the net proceeds as a special dividend—$0.109 HKD per share—with the remainder allocated to scaling its subscription-based image and design software offerings.
This move contrasts with other firms like Boya Interactive (HK00434), which maintains a significant crypto position. As of November 12, Boya held 2,641 BTC (average cost: $54,000) and **15,400 ETH** (average cost: $2,756), with its Bitcoin holdings now valued at $2.26 billion—nearly matching its total market cap of $2.3 billion.
Global Leaders Weigh In: Bitcoin as Digital Gold
At the DealBook Summit in New York on December 4, Federal Reserve Chair Jerome Powell offered a pivotal perspective on Bitcoin’s role in the global economy.
“Bitcoin’s competitor is gold, not the U.S. dollar,” Powell stated. “It’s like gold—but virtual.”
Powell emphasized that due to its high volatility, Bitcoin is not currently used as a payment method or stable store of value. However, its function parallels that of gold: a speculative hedge against macro uncertainty rather than a currency disruptor.
This framing aligns with increasing geopolitical demand for non-sovereign assets. Russian President Vladimir Putin recently echoed this sentiment during an investment forum:
“If foreign reserves can be seized so easily, why accumulate them at all?”
Referencing the freezing of nearly $300 billion in Russian reserves by Western nations since 2022, Putin argued that such actions undermine trust in the U.S. dollar as a primary reserve asset. He pointed to Bitcoin as a viable alternative:
“Who can ban it? No one.”
Putin also advocated for BRICS nations to develop an alternative payment system outside SWIFT and formally signed legislation in November recognizing cryptocurrencies as legal property in Russia. A comprehensive tax framework for crypto transactions and mining will take effect January 1, 2025—signaling a dramatic reversal from earlier anti-crypto stances.
Regulatory Winds Shift in the West
In parallel, political momentum in the United States is shifting toward crypto-friendly policies. President-elect Donald Trump nominated Paul Atkins, a conservative attorney and longtime advocate for deregulation, to lead the Securities and Exchange Commission (SEC).
Atkins, known for his skepticism of aggressive financial oversight, is expected to ease regulatory pressure on digital asset markets—a development that sparked immediate optimism across the sector.
Market analysts interpret this appointment as a green light for further innovation and listing approvals. Mark Palmer, Senior Analyst at The Benchmark Company, forecasts Bitcoin could reach $225,000 by the end of 2026, driven primarily by institutional adoption and favorable policy changes.
Expert Outlook: Volatility Ahead Despite Bullish Trends
While long-term projections remain optimistic, experts caution against complacency.
According to Zhao Wei, Senior Researcher at OKX Insights:
“Despite strong upward momentum, Bitcoin’s trajectory depends heavily on how quickly markets absorb positive news and how major economies adjust monetary and regulatory policies.”
Short-term volatility remains high. Factors such as profit-taking after record highs, potential regulatory clampdowns in key jurisdictions, and macroeconomic data surprises could trigger sharp corrections.
Yu Jianning, co-chair of the Blockchain Committee at the China Communications Industry Association, warns that high leverage combined with extreme volatility poses significant risks:
“When sentiment turns, leveraged positions can collapse rapidly—triggering cascading liquidations and panic selling.”
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Frequently Asked Questions
Q: What caused Bitcoin to break $100,000?
A: A confluence of factors—including U.S. spot ETF inflows, corporate treasury activity, geopolitical demand for non-sovereign assets, and expectations of lighter regulation under upcoming leadership—drove investor confidence and buying pressure.
Q: Is Bitcoin replacing the U.S. dollar?
A: No. According to Federal Reserve Chair Powell, Bitcoin competes more directly with gold as a store of value rather than challenging the dollar’s role as a transactional currency or global reserve standard.
Q: Why did Meitu sell all its crypto?
A: After holding Bitcoin and Ethereum since 2021, Meitu capitalized on record prices to lock in profits. The company plans to return most gains to shareholders via dividends and reinvest the rest into its core software business.
Q: How are governments responding to Bitcoin’s rise?
A: Responses vary. While some countries like Russia have shifted from opposition to legal recognition and taxation frameworks, others maintain cautious or restrictive approaches. Regulatory clarity remains fragmented globally.
Q: Can Bitcoin sustain prices above $100,000?
A: Long-term sustainability depends on continued institutional adoption, improved scalability, regulatory clarity, and macroeconomic conditions. Short-term corrections are likely given current valuation levels.
Q: What are the risks of investing in Bitcoin now?
A: Key risks include extreme price volatility, regulatory uncertainty, cybersecurity threats, and overleveraged trading positions that may amplify market downturns.
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Conclusion
Bitcoin’s breach of $100,000 represents more than a price point—it reflects a maturing asset class gaining traction amid changing financial paradigms. From corporate treasuries to central banks and global policymakers, digital assets are increasingly seen as strategic instruments in an era of monetary uncertainty.
As adoption grows and infrastructure improves, Bitcoin's role as a decentralized store of value continues to evolve—challenging traditional models while inviting both opportunity and caution.
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