Bitcoin has once again captured global attention, recently breaking through the $100,000 psychological barrier and triggering a surge across major altcoins. The rally has sparked intense debate: is this the peak, or just the beginning of a new bull phase? Behind the price momentum are deeper structural forces—government support, institutional adoption, and supply scarcity—all converging to fuel long-term upward pressure.
This article explores the core drivers behind Bitcoin’s continued rise, analyzes how listed companies are positioning themselves in this evolving ecosystem, and highlights investment implications for both digital assets and related equities.
Government Support: A New Era of Crypto-Friendly Policy
One of the most significant catalysts behind Bitcoin’s surge is shifting regulatory sentiment—particularly in the United States. With a new administration signaling strong support for digital assets, confidence among investors has soared.
The U.S. government’s potential move to establish a "national strategic Bitcoin reserve" has been widely discussed, reinforcing the idea that Bitcoin is increasingly being viewed not just as speculative tech, but as a legitimate store of value—akin to gold. This level of state endorsement dramatically enhances market credibility.
Moreover, key political figures and their appointees have shown clear pro-crypto leanings. High-profile supporters like Elon Musk, often dubbed the "father of Dogecoin," have further amplified public interest. Even visual symbols—such as the DOGE logo appearing within newly formed government efficiency departments—signal a cultural shift toward blockchain acceptance.
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While short-term price corrections may occur due to profit-taking (as seen when some firms sold holdings), the broader trend points to sustained governmental backing, especially in major financial hubs like the U.S. and Hong Kong. This growing legitimacy is a foundational pillar for Bitcoin's long-term valuation.
Institutional Adoption: ETFs, Trusts, and Expanding Access
Beyond politics, institutional participation has reached unprecedented levels. The approval and successful launch of spot Bitcoin ETFs in the U.S. marked a turning point, opening the floodgates for traditional finance players to gain regulated exposure to Bitcoin.
These ETFs allow pension funds, asset managers, and retail investors alike to invest without holding private keys or managing wallets—lowering barriers and increasing capital inflows. As more institutions allocate even small percentages of their portfolios to Bitcoin, demand continues to climb.
Companies like MicroStrategy exemplify this trend. In late October, it announced plans to raise $42 billion over three years—half through equity and half through debt—to purchase additional Bitcoin. Such bold moves reinforce market confidence and set a precedent for corporate treasury strategies.
Meanwhile, platforms offering custody, trading, and blockchain infrastructure are seeing growing demand. Firms providing secure virtual asset托管 (custody) and technical solutions are well-positioned to benefit from expanding institutional use cases.
Supply Scarcity: The 2024 Halving Effect
Another fundamental driver is Bitcoin’s built-in scarcity mechanism—the 2024 halving event. Approximately every four years, the reward for mining new blocks is cut in half, reducing the rate at which new Bitcoins enter circulation.
Post-halving, mining becomes less profitable for many operators, leading to consolidation and reduced supply growth. At the same time, demand—especially from national reserves and institutional buyers—is rising sharply. This imbalance between limited supply and increasing demand creates sustained upward price pressure.
Historically, each halving has been followed by significant bull runs. With the latest one now in effect, many analysts believe we’re only in the early stages of the next cycle.
FAQ: Understanding Bitcoin’s Rise and Market Impact
Q: Is Bitcoin really backed by the government?
A: Not directly like fiat currencies, but increasing regulatory clarity and potential reserve strategies give it indirect governmental endorsement—boosting investor trust.
Q: Why did some companies sell their Bitcoin holdings?
A: Profit-taking is common after sharp rallies. For example, Meitu sold all its crypto by December 4, realizing about $80 million in gains—locking in profits amid high prices.
Q: How does the halving affect Bitcoin’s price?
A: By cutting new supply in half, the halving increases scarcity. Combined with steady or rising demand, this often leads to higher prices over time.
Q: Are there risks to investing in Bitcoin-related stocks?
A: Yes. While exchanges and miners can benefit from price rises, they’re also vulnerable to volatility, regulatory changes, and operational risks. Diversification is key.
Q: Which companies are directly involved in cryptocurrency trading?
A: Newfire Technology Holdings (formerly known as Huobi) operates one of the world’s top crypto exchanges. It offers trading services, custody solutions, and mining support—making it a core player in the ecosystem.
Listed Companies Riding the Crypto Wave
Several Hong Kong-listed firms have positioned themselves at the heart of the digital asset revolution:
- OKLink (01499.HK): Once a heavy holder of Bitcoin and Ethereum, it reduced its positions significantly by September 2024. While this limits future upside, it also de-risks exposure ahead of potential corrections.
- Meitu (01357.HK): Demonstrated exceptional timing by selling all its crypto holdings—including ~31,000 ETH and 940 BTC—by early December 2024. The sale generated ~$80 million in profit, surpassing its first-half earnings by nearly 88%. A large portion will be returned to shareholders via special dividends.
- Xiongan Technology (01647.HK): Holds a small but symbolic amount of digital assets (~SGD 380k), reflecting early-stage strategic interest.
- Asia Fruit Industry (00073.HK): A late entrant, having purchased 10 BTC cumulatively since mid-2024 at a total cost of ~HKD 7.5 million.
Among these, Newfire Technology Holdings (01611.HK) stands out as the only pure-play crypto exchange listed in Hong Kong. Its platform ranks among the top globally in trading volume and offers diversified revenue streams: transaction fees, technology solutions, asset custody, and mining services.
In October 2024, Newfire entered into a quantitative arbitrage agreement with Top Value, depositing 8 million USDT (~HKD 62.4 million) for algorithmic trading across spot and futures markets—an innovative way to enhance capital efficiency.
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Market Sensitivity and Future Outlook
Despite similar underlying assets, different stocks react differently to Bitcoin’s price swings:
- Canaan Inc. (NASDAQ: CAN): Highly sensitive; its stock nearly tripled over four months due to strong sentiment around mining profitability.
- Xiongan Tech & OKLink: Both doubled since October 2024.
- Newfire Tech, despite being a core infrastructure provider, has seen more muted movement—potentially presenting an opportunity if broader adoption accelerates.
Analysts at Bernstein project Bitcoin could reach $200,000 by end-2025, driven by ongoing macro tailwinds and structural shifts in asset allocation.
As retail participation grows and more firms explore crypto integration, trading volumes and platform revenues are expected to surge. Exchanges like Newfire stand to gain disproportionately—not just from price appreciation but from increased transaction activity.
Final Thoughts: Beyond Speculation
Bitcoin’s journey past $100,000 isn’t merely a speculative spike—it reflects a maturing asset class gaining traction among governments, institutions, and corporations.
The convergence of pro-crypto policy, institutional adoption, and supply constraints post-halving forms a powerful trifecta supporting further gains. Meanwhile, listed companies involved in trading, custody, or holding digital assets offer indirect exposure—but with varying degrees of risk and timing sensitivity.
For investors seeking long-term exposure to this transformation, focusing on scalable platforms with diversified business models—and strong governance—may offer the most sustainable upside.
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