Bitcoin Price Hits $100k For First Time In History

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Bitcoin, the most well-known cryptocurrency, reached a price of $100,000 for the first time ever on December 5. This is a big moment for the cryptocurrency market, especially since Bitcoin’s price has been growing significantly over the past year.

On November 12, 2024, Bitcoin had just reached $90,000 and less than a month later, it crossed $100,000, showing how fast its price is rising. Early on December 5, same year, Bitcoin set a new record price of $104,000, just 90 minutes after hitting $100,000.

Details of Bitcoin’s Growth

Bitcoin’s growth this year has been supported by several factors:

1. Large Investments: Over $31 billion was invested in Bitcoin exchange-traded funds (ETFs) in the U.S.

2. Halving Event: In April, Bitcoin experienced its fourth “halving,” which reduces the number of new bitcoins created, making it scarcer and more valuable.

3. Donald Trump’s recent win in the U.S. presidential election has also helped Bitcoin’s price surge. His victory has led to speculation that the U.S. may build a strategic Bitcoin reserve. Additionally, more businesses are adopting Bitcoin, thanks to influential figures like Michael Saylor, who leads the company MicroStrategy.

Trump’s decisions have also influenced Bitcoin’s rise. On December 4, he nominated a crypto-friendly person, Paul Atkins, to lead the SEC. This could remove some of the strict regulations that made things tough for the cryptocurrency industry under Biden.

Trump also picked other pro-crypto leaders; hedge fund manager Scott Bessent and Cantor Fitzgerald CEO Howard Lutnik to head the Secretary of Treasury and Commerce departments, respectively, making his administration potentially the most supportive of cryptocurrency so far.

Since January 1st, when Bitcoin was priced at $44,000, its value has increased by 126%, now reaching $100,000. This also pushed Bitcoin’s total market value (market capitalization) to $2 trillion, which is another record.

What You Should Know

Although Bitcoin’s growth this year is impressive, it’s not the highest rise in its history. For example:
In 2017, Bitcoin’s price shot up by 1,900%, going from $1,000 to $20,000 in one year.

During the COVID-19 pandemic in 2020, its price grew by 1,250%, rising from $5,100 in March to $69,000 in November 2021.