Article source: Golden Finance
Author: Rachel, Golden Finance
After half a month of sideways adjustment, Bitcoin finally broke through $100,000 per coin on the morning of December 5, 2024, Beijing time.
What factors contributed to Bitcoin breaking the historic $100,000 mark? Golden Finance summarizes as follows:
1. Trump nominates cryptocurrency advocate Paul Atkins as the new chairman of the U.S. SEC
On December 4, Trump nominated Paul Atkins as chairman of the U.S. SEC. Paul Atkins is a public cryptocurrency advocate. He is the founder of Patomak Global Partners, which includes a cryptocurrency information business, and serves as an advisor for multiple cryptocurrency projects.
Since 2017, Paul Atkins has served as the co-chair of the Token Alliance. The Token Alliance is an industry-led initiative composed of former regulators, industry experts, and lawyers aimed at promoting the mainstream adoption of digital assets. He is also a member of the advisory committee of the Digital Chamber, a leading cryptocurrency advocacy organization based in Washington, D.C.
Following the announcement of Trump's nomination of Paul Atkins as chairman of the U.S. SEC on the morning of December 5, Bitcoin immediately rose from around $95,000 to $99,000, breaking the historic $100,000 mark after the news gained traction.
2. Powell: Bitcoin's competitor is gold, not the dollar
On December 4, Powell stated in a speech that the Federal Reserve has not yet achieved its inflation reduction target, but is still making progress in bringing down inflation. The rising price levels have caused public dissatisfaction; while employment figures appear strong, low-income groups are under pressure. These comments still align with expectations for a 25 basis point rate cut in the U.S. in December. He also mentioned that Bitcoin is viewed as a speculative asset, with its main competitor being gold rather than the dollar.
3. Russian President Putin clearly supports cryptocurrencies: no one can ban Bitcoin
On December 4, Russian President Putin stated at the Russia Calling investment forum that no one can stop the development of Bitcoin, "Who can ban Bitcoin? No one can. Who can prohibit the use of other electronic payment methods? No one can either. Because these are new technologies. Regardless of how the dollar fares in the future, these tools will develop in one way or another, as everyone is striving to reduce costs and increase reliability."
Last week, Putin officially signed a significant law that clearly defines cryptocurrencies as 'property' and establishes a comprehensive tax framework for cryptocurrency trading and mining activities. This law will take effect on January 1, 2025, marking a key step for Russia in the regulation and taxation of cryptocurrencies.
4. Continuous issuance of stablecoins, market capitalization exceeds $200 billion
The increase in stablecoin issuance has always been a sign of hot money inflow and represents the issuers' optimism about the overall future of the cryptocurrency market. Current data shows that the total market capitalization of stablecoins has exceeded $200 billion, currently reported at $200,129,553,664, reaching a historic high, of which Tether's USD stablecoin (USDT) has a market cap of about $13.577 billion. Since Trump's victory, Tether has issued an additional $17 billion of USDT.
5. The South Korean cryptocurrency market plummets, massive funds buy the dip
On the evening of December 3, South Korean President Yoon Suk-yeol's announcement of a state of emergency caused market fluctuations, with Bitcoin's price on the South Korean Upbit exchange temporarily dropping to around $60,000, although significant funds rushed in to buy. South Korean traders love high-risk, high-return products; since Trump's election win, trading volumes of crypto tokens have exceeded the benchmark KOSPI index in South Korea.
6. Bitcoin halving cycle
The last Bitcoin halving occurred in May 2024, and in the past three halvings, Bitcoin has set historical records. According to cyclical patterns, the second half of the crypto bull market has just begun, and 2025 will still be a bull market year.
7. Innovation and development in the industry
The development of the cryptocurrency industry, with the integration of AI and Web3, has become a hot spot for industry innovation, attracting many traditional investors and entrepreneurs, with new application paradigms gradually unfolding.
