- During a sustained run, Bitcoin broke beyond the $100,000 barrier late Wednesday night, reaching a new all-time high.
- Positive market sentiment after Donald Trump’s election victory has been driving the world’s largest cryptocurrency by market capitalization to reach fresh all-time highs.
During a sustained run, Bitcoin broke beyond the $100,000 barrier late Wednesday night, reaching a new all-time high.
The top cryptocurrency by market capitalization rose by about 6% over the previous day, trading at $101,400 at the time of posting. Since early October, when it was valued at about $60,000, it has increased by more than 67% and more than 47% in the last month.
Growing desire for digital assets as long-term investment opportunities and inflation hedges drove the price spike of Bitcoin long before the election. Additionally, the market was positively impacted by Trump’s victory last month, as analysts expected his administration to create more transparent regulations for cryptocurrencies.
Corporate and institutional interest is still a major factor driving bitcoin’s price. The biggest publicly traded company that owns bitcoin, MicroStrategy, revealed in November that it had paid $1.5 billion to purchase an additional 15,400 bitcoin.
In order to strengthen its position as a key participant in the institutional adoption of the digital asset, the company intends to use the money raised to buy more bitcoin. MicroStrategy now owns 402,100 Bitcoin, which is worth over $40.5 billion.
Acurx Pharmaceuticals, a biopharmaceutical company listed on the Nasdaq, recently announced that its board had approved the purchase of up to $1 million in bitcoin to hold as a treasury reserve asset. This is just one example of how corporate treasuries are following MicroStrategy by adding bitcoin to their reserves.
We think that bitcoin will be a solid treasury reserve asset for cash that is not needed over the next 12 to 18 months as demand for it increases and it is accepted as a major and primary asset class. This new treasury approach is a finance strategy that has no bearing on our overall drug research ambitions, but its restricted supply and inflation-resistant qualities make it a useful store of value.
Another factor that has helped the cryptocurrency surpass the $100,000 mark is the inflow of spot exchange-traded funds into the US. For spot bitcoin ETFs, November hit a new record, per Glassnode statistics. Over the past month, inflows into Bitcoin ETFs totaled $6.1 billion, with $5.4 billion going into BlackRock’s IBIT fund.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
