Bitcoin has reached an unprecedented milestone, surging past $100,000 on Wednesday evening. The rally marks a 120% gain this year, driven by institutional adoption and favorable political shifts, including Donald Trump’s pro-crypto presidential win.
A Historic Journey to $100K
The cryptocurrency hit $101,000 at 9:45 PM ET, per Coinbase data, far surpassing its $44,000 price at the start of the year. This milestone comes more than 15 years after Satoshi Nakamoto introduced Bitcoin as a decentralized alternative to fiat currency. Once dismissed as a tool for illicit online purchases, Bitcoin has evolved into one of the world’s most valuable assets, appreciating over 14,250% in the past decade.
What Fueled the Rally?
The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) in January marked a turning point for the crypto industry. After years of rejections, these ETFs have provided traditional investors with an accessible pathway to Bitcoin, driving substantial inflows and increasing institutional participation. This regulatory shift has been pivotal in boosting Bitcoin’s legitimacy as a mainstream investment asset.
Institutional giants such as Goldman Sachs and Tudor Investment Corporation have leveraged ETFs to gain exposure to Bitcoin, further validating its role in diversified portfolios. Their involvement reflects growing confidence in digital assets, reinforcing Bitcoin’s position as a hedge against inflation and a critical component of modern finance.
Adding to the momentum, Donald Trump’s pro-crypto presidency has bolstered optimism within the market. His victory on November 5 catalyzed a rally dubbed the “Trump Trade,” as he pledged to support crypto mining and proposed the creation of a U.S. Bitcoin reserve. These commitments have positioned his administration as a potential catalyst for a more favorable regulatory environment.Further optimism stems from the upcoming departure of SEC Chair Gary Gensler, who enforced a strict regulatory stance under President Biden. Trump’s nominee, Paul Atkins, is expected to adopt a more crypto-friendly approach, signaling a possible shift towards policies that could foster innovation and growth within the digital asset space.
