Bitcoin hits $100,000 for first time. (Representational Image)
Mumbai: Bitcoin made a significant mark by surpassing the $100000 mark for the first time on Wednesday (December 4) driven by favorable market dynamics, growing US regulatory clarity, and institutional adoption through Bitcoin ETFs. The milestone comes just hours after the newly elected US President Donald Trump signaled a lighter regulatory approach to the crypto industry when he said he intends to nominate cryptocurrency advocate Paul Atkins to be the next chair the Securities and Exchange Commission.
Vishal Sacheendran, Head of Regional Markets at Binance said, “Bitcoin has hit the historic $100,000 mark, driven by favorable market dynamics, growing U.S. regulatory clarity, and institutional adoption through Bitcoin ETFs. The cryptocurrency market is experiencing a surge in optimism as governments and institutions worldwide begin to embrace blockchain technology, paving the way for broader adoption and investment in digital assets. This renewed enthusiasm reflects a maturing ecosystem poised for sustained growth.”
Rahul Pagidipati, CEO, ZebPay said, “Bitcoin reaching this milestone marks a significant achievement in the evolution of digital assets and reflects the growing global trust in the power of decentralized finance. Bitcoin is now effectively one of the top 10 most valued assets in the world, ranking above all commodities except gold and higher than most companies. The crypto market’s total capitalization has also crossed the $3.5 trillion mark, demonstrating the scale of interest and widespread adoption in the space.”
Bitcoin has soared to unprecedented heights since Trump won the election November 5. The cryptocurrency has climbed dramatically from USD 69,374 on Election Day and rose as high as USD 103,713 Wednesday. Just two years ago, Bitcoin had dropped below USD 17,000 following the collapse of crypto exchange FTX.
Crypto investors are hopeful that Trump's policies will reduce regulatory barriers and boost institutional adoption. During his campaign, Trump pledged to make the US a global hub for cryptocurrencies, promising to build a national Bitcoin reserve and
establish policies to promote blockchain innovation. Discussions around a US Strategic Bitcoin Reserve and corporate treasury integration signal a shift toward mainstream adoption. The coming year promises enhanced regulatory frameworks, greater transparency, and innovations in DeFi, tokenized assets, and blockchain interoperability, paving the way for a more inclusive global economy say experts.
Bitcoin is the largest and oldest cryptocurrency, although other assets like ethereum, tether and dogecoin have also gained popularity over the years.
Time and again the Indian central bank governor Shaktikanta Das has suggested banning cryptocurrencies.
“Crypto should be banned, given its no underlying value in the market. Just like every asset, every financial product comes with some underlying value, hence the value of crypto is totally based on the make-believe factor." He added that "Crypto is a form of gambling without any underlying value and is nothing but a 100 percent speculation world.”
“The launch of Bitcoin ETFs and, more recently, Bitcoin ETF options, has played a key role in the recent market rally and simplified access for institutional investors, allowing them to gain exposure and manage risks more effectively,” added Sacheendran.
( Source : Deccan Chronicle )
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