Bitcoin price surpasses $100,000, reaching all-time high

NEW YORK,— Bitcoin BTC surged above $100,000 for the first time on Thursday, reaching a significant milestone that was praised even by previous critics.

This achievement is seen as a turning point for digital currencies, with investors increasingly confident that a supportive U.S. administration will help secure cryptocurrency’s place in global financial markets.

The price of Bitcoin rose past $100,000 during the early hours of Thursday in Asia, following U.S. President-elect Donald Trump’s nomination of Paul Atkins, a crypto advocate, to head the Securities and Exchange Commission (SEC). Shortly after, the price peaked at $103,619, representing a nearly 6% increase for the day. By the end of the day, Bitcoin was trading at approximately $102,650.

The total value of the cryptocurrency market has nearly doubled in 2024, reaching an all-time high of almost $3.8 trillion, according to data from CoinGecko. For comparison, Apple’s market value stands around $3.7 trillion.

Bitcoin’s evolution from a niche digital asset to a significant player in the financial world has created new wealth and introduced the concept of “decentralized finance.”

Despite its beginnings 16 years ago, Bitcoin has become synonymous with the idea of a store of value that is not controlled by any government or private entity.

Unlike Bitcoin, other cryptocurrencies are often created and controlled by private companies, which analysts argue makes them highly speculative. Bitcoin, they say, is the only truly decentralized digital currency with no owner or central authority.

Bitcoin’s price has more than doubled this year and has risen by over 50% since Donald Trump’s election victory. His election also brought in several pro-crypto lawmakers to Congress.

“We are witnessing a major shift,” said Mike Novogratz, CEO of Galaxy Digital, a U.S.-based crypto firm. He believes Bitcoin and other digital assets are on the verge of becoming mainstream, driven by institutional adoption, progress in tokenization, and clearer regulations.

Trump has shown strong support for digital currencies, vowing to make the U.S. the “crypto capital of the world” and even promising to stockpile Bitcoin at the national level.

According to Joe McCann, founder of the Miami-based hedge fund Asymmetric, the market saw a notable increase in U.S. investments after Trump’s victory. “We were in a holding pattern for months, but since November 5, U.S. investors have been buying aggressively,” McCann said.

Bitcoin supporters also welcomed Trump’s SEC nominee, Paul Atkins. A former SEC commissioner, Atkins is known for his involvement in the crypto industry and his work with the Token Alliance, an organization focused on developing best practices for digital assets.

Blockchain Association CEO Kristin Smith emphasized that Atkins’ expertise would be valuable for the future of crypto innovation in the U.S.

Experts say Bitcoin was created as a response to government practices of printing money and generating currency out of thin air, which leads to inflation and the erosion of value.

People sought a reliable store of value that couldn’t be controlled by any government or corporation. Another driving factor is the desire for privacy; governments aim to monitor even the smallest transactions and are increasingly pushing to eliminate cash.

With the ability to freeze or control bank accounts, governments can exert power over individuals. Bitcoin, therefore, emerged as a decentralized alternative, providing financial freedom and protection from such control.

According to financial experts, Bitcoin’s value is expected to rise significantly in the coming years. Projections suggest that by 2025, Bitcoin could reach anywhere from $175,000 to $550,000, and it could soar to $1 million by 2030, reflecting growing institutional adoption and increased demand for decentralized financial systems.

Bitcoin’s global influence continues to grow, with El Salvador becoming the first country to officially adopt the cryptocurrency as legal tender in September 2021. In 2022, the Central African Republic also adopted Bitcoin (BTC) as legal tender.

But in a world that’s rapidly embracing innovation and financial freedom, some ideas still seem trapped in the most outdated, even absurd, thinking. For example in June 2020, when the Iraqi Kurdistan Region’s High Council of Fatwa ruled that using cryptocurrencies, including Bitcoin, was “haram” and prohibited.

They claimed it was akin to gambling, simply because it didn’t have official government backing. According to their statement, “Most of the time, paper currency is issued by authorized central banks, in contrast to electronic currency. So there is no legal support.”

Learn more about The Bitcoin Standard: The Decentralized Alternative to Central Banking, a hardcover edition with illustrations, published on April 24, 2018, by Saifedean Ammous.

(With files from Reuters)