Rachel, Golden Finance
After half a month of sideways adjustment, Bitcoin finally broke through $100,000 per coin on December 5, 2024, Beijing time.
On December 4, Putin announced the inclusion of Bitcoin into the national strategic reserves, and the current SEC Chairman Powell delivered a speech. The content of his speech still aligns with people's expectations of a 25 BP rate cut in the US in December. Including these factors, what other factors contributed to Bitcoin breaking $100,000?
1. Russian President Putin openly supports cryptocurrencies, suggesting that Bitcoin could become a national reserve.
Last week, Putin officially signed an important law that explicitly recognizes cryptocurrencies as "property" and established a comprehensive tax framework for cryptocurrency trading and mining activities. This law will officially take effect on January 1, 2025, marking a key step for Russia in cryptocurrency regulation and taxation.
In his speech on December 4, Putin questioned the necessity of Russia holding foreign exchange reserves and hinted that Bitcoin might be a better option.
2. Powell's speech stated that Bitcoin's competitor is gold rather than the US dollar, and the Federal Reserve has not yet achieved its goal of reducing inflation.
On December 4, Powell stated in his speech that the Federal Reserve has not yet achieved its goal of reducing inflation, but is still making progress in lowering inflation. Rising price levels have caused dissatisfaction among the public. From the employment numbers, the job situation appears good, but the low-income class is under pressure. The content of this speech still aligns with people's expectations of a 25 BP rate cut in the US in December. He also mentioned in his speech that Bitcoin is seen as a speculative asset, with its main competitor being gold rather than the US dollar.
3. The South Korean cryptocurrency market crashes, a large amount of funds rush to bottom fish.
On the evening of December 3, South Korean President Yoon Suk-yeol announced a state of emergency, causing market fluctuations. The price of Bitcoin on the South Korean Upbit exchange once dropped to around $60,000, but significant funds entered for purchasing. South Korean traders love high-risk, high-reward products, and since Trump won the election, the trading volume of cryptocurrency tokens has exceeded the South Korean benchmark KOSPI index.
4. Factors related to Trump's election as President of the United States.
After Trump was elected President of the United States, he nominated the conservative lawyer Paul Atkins, who has always supported cryptocurrencies, to serve as the Chairman of the SEC. He has long been skeptical of financial regulation and is expected to work on reducing red tape and restraining the SEC's enforcement division. The news of Trump choosing a digital asset advocate as the SEC chairman ignited a new round of Bitcoin price surge.
On the other hand, his business empire is also getting involved in the crypto industry, as his Trump Media Technology Group plans to acquire the crypto exchange Bakkt.
5. Continuous issuance of stablecoins, market value exceeds $200 billion.
The issuance of stablecoins has always been a sign of hot money inflow, and it also represents the issuers' optimism about the overall future of the cryptocurrency market. Market data shows that the total market value of stablecoins has exceeded $200 billion, currently reported at $200,129,553,664, setting a new historical high, with Tether's US Dollar stablecoin USDT having a market value of approximately $135.77 billion. Since Trump was elected, Tether has issued an additional $17 billion of USDT.
6. Expectations of Bitcoin halving:
The last Bitcoin halving occurred in May 2024, and after the past three halvings, Bitcoin has set records.
7. Innovation and development in the industry
The development of the cryptocurrency industry, currently the combination of AI and Web3 has become a hot topic for industry innovation, attracting many traditional investors and entrepreneurs, with new application paradigms gradually unfolding.