Rachel, Golden Finance

Bitcoin, which has been adjusting sideways for half a month, finally broke through 100,000 US dollars on the morning of December 5, 2024, Beijing time.

What factors have contributed to Bitcoin breaking the historic mark of 100,000 US dollars? Golden Finance summarizes it as follows:

1. Trump nominates encryption advocate Paul Atkins as the new chairman of the US SEC

On December 4, Trump nominated Paul Atkins as chairman of the US SEC. Paul Atkins is an avowed encryption advocate. Paul Atkins is the founder of Patomak Global Partners, whose business includes encryption information business. Paul Atkins serves as a consultant for multiple encryption projects.

Paul Atkins has served as Co-Chair of Token Alliance since 2017. Token Alliance is an industry-led initiative made up of former regulators, industry experts and lawyers aiming to drive the mainstreaming of digital assets. He is also an advisory board member of the Digital Chamber of Commerce, a leading cryptocurrency advocacy organization based in Washington, DC.

After the news was announced in the early morning of December 5 that Trump nominated Paul Atkins as chairman of the US SEC, Bitcoin immediately rose from around US$95,000 to US$99,000, breaking through the historic mark of US$100,000 after the news fermented.

2. Powell: Bitcoin’s competitor is gold, not the U.S. dollar

In his speech on December 4, Powell said that the Federal Reserve has not yet achieved its goal of lowering inflation, but is still making progress in lowering inflation. Rising price levels have made the public dissatisfied. Judging from the number of employed people, the employment situation is good, but low-income groups are under pressure. These speeches are still in line with people's expectations for another 25BP interest rate cut in the United States in December. At the same time, he also mentioned in his speech that Bitcoin is regarded as a speculative asset, and its main competitor is gold rather than the US dollar.

3. Russian President Putin clearly supports cryptocurrency: No one can ban Bitcoin

Russian President Putin December 4 Day in Russia Calling The investment forum stated that no one can stop the development of Bitcoin, "Who can ban Bitcoin? No one can. Who can ban the use of other electronic payment methods? No one can. Because these are new technologies. No matter what the future of the U.S. dollar is, These tools will all evolve in one way or another, as everyone strives to reduce costs and improve reliability.”

Last week, Putin officially signed a major law that explicitly identifies cryptocurrencies as such. “property” and develops a comprehensive tax framework for cryptocurrency trading and mining activities. This law will be officially implemented on January 1, 2025, marking theRussia has taken a crucial step in the area of ​​cryptocurrency regulation and taxation.

4. Stablecoins continue to be issued, and the market value exceeds 200 billion US dollars

The additional issuance of stablecoins has always been a sign of the influx of hot money, and also represents issuers’ optimism for the future of the overall encryption market. The market value shows that the total market value of stablecoins has exceeded 200 billion US dollars and is now at 200,129,553,664 US dollars, a record high. Among them, the market value of Tether's US dollar stable currency USDT is approximately 135.77 billion US dollars. Since Trump won the election, Tether has issued an additional $17 billion in USDT.

5. The Korean crypto market plummeted, and a large number of funds bought the bottom

On the evening of December 3, South Korean President Yoon Seok-yue's declaration of martial law triggered market fluctuations. The price of Bitcoin on South Korea's Upbit exchange once fell to about $60,000, but a large amount of money rushed in to buy it. South Korean traders love high-risk, high-reward products, with crypto token trading volumes exceeding South Korea’s benchmark KOSPI index since Trump won the election.

6. Bitcoin halving expectations

Bitcoin’s last halving was in May 2024. Bitcoin will set a historical record after the past three halvings. According to the law of cycles, the second half of the crypto bull market has just begun, and 2025 will still be a bull market year.

7. Innovation and development of the industry

With the development of the cryptocurrency industry, the current combination of AI and Web3 has become a hot spot for industry innovation, and has also attracted many traditional investors and entrepreneurs. , new application paradigms are gradually unfolding.