Bitcoin prices have reached new historical highs. As of December 5, Beijing time, Bitcoin prices continued to rise, breaking through $96,000, $97,000, $98,000, $99,000, and $100,000 consecutively. As of 1:50 PM on December 5, Bitcoin was still rising, with the latest price reported at $102,200, a 24-hour increase of 6.1%. The surge in Bitcoin has also driven other virtual assets upward. Among them, Ethereum's latest price is reported at $3,832, with a 24-hour increase of 4.67%, and a weekly increase of 6.06%. Dogecoin's latest price is reported at $0.4364, with an increase of 4.98%, and a monthly increase of as high as 188.02%. 01 Behind the Surge
Since the beginning of this year, Bitcoin has accumulated a rise of 156%. Since November, Bitcoin has risen directly from $68,000 to $100,000 in just one month.
Source: What has driven the surge in Bitcoin? Yu Jianing, co-chair of the Blockchain Special Committee of the China Communications Industry Association and honorary chairman of the Hong Kong Blockchain Association, stated that from the history of Bitcoin, its price changes can be summarized as 'three jumps in a bull market.' First, it was a speculative bull market led by retail investors, characterized by curiosity about technology and speculative investment sentiment, which drove Bitcoin prices to fluctuate and rise continuously in the early stages. Subsequently, the entry of institutional investors, especially when asset management companies and financial institutions began to allocate through financial products like ETFs, gradually transformed Bitcoin's status from a 'speculative tool' to an investable asset, constituting the second stage of bull market momentum. The current rise in Bitcoin prices clearly indicates that the 'three jumps in a bull market' have entered the third stage, where recognition and policy support at the national level have gradually made Bitcoin a potential choice for global reserve assets, propelling it into a new stage of the bull market.
On the news front, U.S. President-elect Trump has chosen virtual asset advocate and senior financial regulator Paul Atkins as the chairman of the U.S. Securities and Exchange Commission. Following this announcement, a number of virtual assets saw a short-term rise.
Moreover, it is not just the U.S.; market news indicates that Russian President Putin has also publicly expressed support for virtual assets. Additionally, Putin has officially signed an important law that clearly recognizes virtual assets as 'property' and has established a comprehensive tax framework for virtual asset trading and mining activities. This law will come into effect on January 1, 2025, marking a key step for Russia in the regulation and taxation of virtual assets.
02
210,000 people liquidated
Despite the soaring prices, some speculators have suffered significant losses. Coinglass data shows that in the last 24 hours, a total of 214,220 people were liquidated, with a total liquidation amount of $668 million, including both bearish and bullish participants.
Source: Coinglass
It should be noted that in virtual asset trading, high leverage not only amplifies potential gains but also significantly increases risks.
As Bitcoin prices continue to rise, market sentiment is also heating up. After breaking the $100,000 mark, how much more room is there for further increases? In this regard, Yu Jianing believes that from the current market fundamentals, Bitcoin still has considerable upside potential. The global macro environment, especially the uncertainty in geopolitics, combined with the gradual decline in trust in traditional fiat currency systems, is prompting more institutions and countries to explore options for including Bitcoin in their asset allocation and foreign exchange reserves. This trend will bring larger-scale capital inflows, providing fundamental support for further Bitcoin increases.
However, Yu Jianing also pointed out that after Bitcoin broke the $100,000 milestone, it is difficult to accurately estimate the height of the peak. In a bull market, excessive speculation about the peak is not a rational strategy; what is truly important is to recognize the fundamental changes and developments that support its value.
Despite the rise in Bitcoin prices, the risks lurking behind cannot be ignored. Yu Jianing pointed out that investors need to pay special attention to avoiding excessive risk-taking and emotional trading. In particular, high-leverage trading poses significant risks in the virtual asset market, as it may bring high short-term returns, but it can also lead to severe losses during price fluctuations. The volatility of digital assets is immense; using high leverage not only amplifies profits but also exponentially increases the risk of loss, potentially leading to complete loss of funds in a short time. Therefore, investors should maintain a moderate risk exposure and avoid high-leverage operations to ensure they are not forced to close positions during market fluctuations.
Secondly, the emotion of FOMO (Fear of Missing Out) often spreads during bull markets, leading investors to chase prices at market peaks, thus facing significant price correction risks. In the virtual asset market, blindly following trends can often result in the dilemma of buying high and selling low; it is especially important to maintain rationality and base investment judgments on fundamentals. Investors need to realize that each increase during a bull market is built on market volatility, and they should avoid neglecting long-term investment logic and risk management in pursuit of short-term price increases.
Renowned economist Pan Helin also pointed out that Bitcoin is a highly speculative asset, and with high volatility, prices can drop rapidly. Although the game of passing the parcel is very appealing, it is not suitable for ordinary investors.
