Bitcoin Exceeds $100K in Daily and Weekly Close; A Milestone

Bitcoin closed above the $100,000 level on December 8 for the first time in its history. The value had a weekly close of $103,900.47 and a daily close of $101,236.01. This record achievement reflects a new era of confidence among investors, with several factors influencing the significant growth in digital assets.

Bitcoin (BTC) reached an all-time high of $103,679 on December 5 but soon corrected itself to its opening price of $97,074.22 on December 6. However, on Sunday, December 8, the market closed at $101,236.01, according to CoinMarketCap. The weekly close was at $103,900.47, increasing BTC’s market cap to $2.003 trillion.

Factors that led to BTC’s $100 thousand move

A combination of regulatory changes and increased institutional confidence in the asset class has been attributed to this phenomenon, leading to a rapid increase in both the daily and weekly close, exceeding $100,000 for the first time.

BTC’s popularity has also increased with Federal Reserve Chairman Jerome Powell comparing it to gold, stating that this gives BTC greater credibility as a legitimate source of value. This perspective remains consistent with BTC’s increasing recognition as a reserve currency. In its Q4 report, the US Treasury Department highlighted BTC’s role in driving crypto market capitalization, which now exceeds $2 trillion. He added that the asset has become a reserve currency and is increasingly being added to corporate portfolios. Its introduction into financial systems is a valuable innovation that many analysts agree is changing the perception of digital assets and businesses towards traditional reserves.

Analysts’ Perspective on Bitcoin

According to Coindesk Senior Analyst James Van Straten, BTC’s rise has been largely driven by institutional adoption. “This is the first year of corporate adoption,” he said. In his speech at Bitcoin MENA, a BTC conference in Abu Dhabi, Straten emphasized that President-elect Donald Trump’s selection of Paul Atkins as the new SEC Chairman was one of the biggest forces that pushed BTC above $100,000. Although known for his crypto-friendly stance, Atkins is expected to present a more positive regulatory framework than his predecessor, Gary Gensler, who pursued an aggressive policy.

Bitcoin’s role as a hedge against inflation

According to the latest Financial Audit data, as of September 30, 2024, the total federal debt of the United States reached $35.5 trillion, an increase of $2.3 trillion compared to 2023. Institutions and countries seeking decentralized alternatives such as BTC are encouraged by increasing levels of financial instability that are weakening trust in traditional fiat systems. Due to its limited supply and independence from central banks, BTC is increasingly seen as a hedge against inflation and monetary uncertainty.