The entire cryptocurrency market is focused on Bitcoin breaking the 100,000 mark, and these factors have played a facilitating role.
1. Economic and Geopolitical Environment
Inflation Hedge: The long-term quantitative easing policy of the Federal Reserve has led to a global liquidity flood, making Bitcoin an ideal tool to combat inflation due to its fixed supply.
De-dollarization Trend: The international community is seeking to escape the dominance of the dollar in the context of escalating geopolitical conflicts, making Bitcoin a potential alternative settlement tool.
2. Technological Upgrades and Ecological Improvement
Technological Innovation: Upgrades like the Lightning Network and Taproot have significantly improved transaction efficiency, privacy, and scalability, enhancing the feasibility of its actual payment scenarios.
Mature Ecosystem: The gradual improvement of infrastructure has significantly lowered the user threshold, promoting Bitcoin's transition from an investment asset to a financial tool.
3. Institutional Investment and Mainstreaming
ETF Drives Capital Inflow: The approval of spot Bitcoin ETFs provides traditional investors with compliant channels, attracting a large influx of capital into the market.
Accelerated Adoption by Companies: Support from companies like Tesla and PayPal has further expanded Bitcoin's payment scenarios, gradually integrating it into mainstream economic activities.