Bitcoin (BTC) has shattered expectations, reaching a historic all-time high of $103,850. The milestone comes amid a flurry of positive developments, including new leadership at the U.S. Securities and Exchange Commission (SEC), surging institutional interest, and growing global recognition of Bitcoin’s potential. Let’s dive into the three major factors fueling this rally.
1. Paul Atkins Takes the Helm at the SEC
The announcement of pro-crypto Paul Atkins as the incoming SEC Chair has been a game-changer for Bitcoin. Appointed by former President Donald Trump to replace Gary Gensler, Atkins is seen as a beacon of hope for a more crypto-friendly regulatory landscape.
Ripple CEO Brad Garlinghouse and Senator Cynthia Lummis welcomed the move, calling it a pivotal moment for the industry. Garlinghouse praised Atkins for bringing “common sense” to the agency. The crypto community is optimistic about the potential for regulatory clarity and even the possibility of the U.S. establishing a strategic Bitcoin reserve.
This leadership change has injected newfound optimism, driving the market into a bullish frenzy.
2. BlackRock’s Bitcoin ETF Gains Massive Traction
The BlackRock iShares Bitcoin Trust ETF (IBIT) has been a cornerstone of Bitcoin’s meteoric rise. Surpassing $50 billion in assets under management (AUM) within just 228 days of its launch, the ETF’s growth has been unprecedented.
This milestone underscores surging institutional interest, with traditional BlackRock funds pouring into IBIT over recent months. Bloomberg ETF Strategist Eric Balchunas highlighted its rapid ascent, noting it reached this benchmark more than five times faster than its nearest competitor.
In just three days this week, IBIT netted $1.6 billion in inflows, solidifying its dominance in the Bitcoin ETF space. This institutional backing has provided a sturdy foundation for Bitcoin’s bullish momentum.
3. Global Recognition: Putin Endorses Bitcoin
Bitcoin’s rally has also been buoyed by increasing global recognition. Russian President Vladimir Putin made waves at the Russia Calling Investment Forum by voicing strong support for digital assets. Declaring that Bitcoin’s growth is unstoppable, Putin’s comments have sparked renewed interest in the crypto market.
This endorsement from a global leader emphasizes Bitcoin’s role as a transformative financial asset, further bolstering investor confidence.
Bitcoin Surpasses $2 Trillion Market Cap
With its price soaring past $103K, Bitcoin’s market cap has surged above $2 trillion for the first time. This positions BTC closer to overtaking tech giants like Alphabet and Amazon, solidifying its status among the world’s top five assets.
Daily trading volumes have skyrocketed by 50%, surpassing $100 billion, while futures long positions surged, with funding rates climbing 81%. Analysts predict Bitcoin could hit $120,000 by year’s end as bullish momentum continues.
Massive #BTC futures long positions ramp Bitcoin above $100,000 – funding rate hits 81% annualized !!! pic.twitter.com/eqLGmjqH0p
— 10x Research (@10x_Research) December 5, 2024
As institutional inflows grow, global recognition rises, and regulatory clarity improves, Bitcoin’s future appears brighter than ever. The rally to $103K may only be the beginning of a new chapter for the king of cryptocurrencies.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Bitcoin (BTC) Surges 126% in 2024, Reaches Historic $100,000 – What’s Driving the Rally?
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