Bitcoin breaks through the 100,000 USD barrier, opening a new chapter

On December 5, 2024, the price of Bitcoin broke through $100,000 for the first time, officially entering the six-figure era. This milestone event occurred on the 15th anniversary of Bitcoin's birth, marking the market value of this digital asset surpassing $2 trillion, on par with tech giant Google, far exceeding the market value of silver.

Bitcoin and the entire cryptocurrency market have grown from their infancy at the dawn of their existence to a vibrant and promising adolescence. Over the past 15 years, the price of Bitcoin has risen from less than 1 cent to 100,000 dollars, an increase of over 125 million times, showcasing astonishing growth potential.

At the same time, changes in the U.S. policy environment are bringing new opportunities to the industry. The newly appointed head of the regulatory agency is expected to create a more open policy environment for the cryptocurrency industry, injecting new momentum into future development.

Bitcoin's 15-Year Journey

Fifteen years ago, in November 2008, a paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System" was published online under the pseudonym Satoshi Nakamoto, systematically outlining how to build an electronic transaction system that does not require third-party trust, bringing disruptive ideas to global finance.

At that time, the world was experiencing an unprecedented financial crisis, which began in the United States and spread globally. To save the economy, the US government implemented large-scale intervention policies, including injecting capital into financial institutions and quantitative easing. Although these measures stabilized the market in the short term, they also laid hidden dangers, such as excessive currency issuance and increased inflation risks, leading to a decline in public confidence in the traditional financial system.

It is against this backdrop that Satoshi Nakamoto proposed the idea of designing a new currency system. He hoped to establish a decentralized payment system through technological means, no longer relying on governments and financial institutions. The core concept of Bitcoin is to break the traditional model, achieve decentralized transactions through blockchain technology, improve efficiency, reduce costs, and enhance transaction privacy protection.

On January 3, 2009, Satoshi Nakamoto mined the Bitcoin genesis block on a server in Helsinki, Finland, receiving the first 50 Bitcoins. The genesis block also contains a symbolic text that records the historical background of Bitcoin's birth.

Since then, Bitcoin officially stepped onto the historical stage. Although only a few tech enthusiasts participated initially, its potential gradually became recognized by more people. Bitcoin is not only a digital currency but also represents a technological revolution, opening up new possibilities for payment, value storage, and financial innovation.

As time goes by, Bitcoin and blockchain technology continue to evolve, attracting the attention of numerous developers, investors, and businesses. Today, Bitcoin has become a global asset, playing an important role in the financial sector and sparking in-depth discussions on technological ethics and economic systems.

The Reasons Behind Bitcoin Surpassing $100,000

In January 2024, the U.S. Securities and Exchange Commission approved 11 spot Bitcoin ETFs. In just 10 months, these ETFs attracted over $100 billion in inflows, reaching nearly 82% of the size of the U.S. gold ETFs. This marks Bitcoin's gradual emergence as a significant asset for global institutional investors.

With the influx of capital, the market structure of Bitcoin has undergone fundamental changes. Wall Street financial giants, global listed companies, and even sovereign wealth funds from multiple countries have all participated. The rise of institutional investment has made Bitcoin an asset class that cannot be ignored in the traditional financial system.

A certain technology company has become the largest holder of Bitcoin in the world, holding over 402,100 Bitcoins as of December 5, 2024, accounting for 1.5% of the total supply. The company has invested a total of $23.483 billion to purchase Bitcoin, with an average purchase price of $58,402, and the current unrealized gains have exceeded $16.7 billion. Meanwhile, more than 60 publicly listed companies and thousands of private companies have also joined the ranks of Bitcoin investors.

The shift in U.S. policy also played a key role. The new government has adopted a more lenient cryptocurrency regulatory policy, supporting the inclusion of Bitcoin in government reserve programs. This relaxation of policies has boosted market confidence, leading to more capital flowing into the Bitcoin market, laying the foundation for its financialization and legalization.

Multiple factors have jointly driven the globalization process of Bitcoin. Against the backdrop of the US interest rate cut cycle, global liquidity has increased, and Bitcoin, as a non-traditional asset, has become more attractive. The entry of Wall Street giants has injected a large amount of institutional funds into the market and increased recognition. A certain technology company's CEO has increased his Bitcoin holdings through debt, not only driving up the coin price but also causing the company's stock price to soar, creating a "stock price-coin price" spiral effect that encourages more listed companies to follow suit.

More importantly, the U.S. government's shift in cryptocurrency policy has provided institutional support for this process. The government not only publicly supports Bitcoin but also proposed to treat it as a strategic reserve asset. This decision has accelerated the "normalization" process of Bitcoin, transforming it from an emerging speculative tool into an important component of the global financial system.

The process of Bitcoin financialization can be described as a carefully planned "top-level conspiracy". With the approval of Bitcoin ETFs, the entry of Wall Street giants, and large-scale corporate purchases, the entire market has undergone profound changes. Cryptocurrencies are gradually becoming an important component of the global capital market, heralding profound transformations in the financial sector.

Through a series of policy adjustments, market changes, and corporate behaviors, the status of Bitcoin has undergone a tremendous transformation and may become one of the core assets in the global economic system in the future.

The Impact of the New Regulatory Authority Leader

On December 5, 2024, the President of the United States announced that Paul Atkins would be appointed as the new chairman of the Securities and Exchange Commission. This decision marks a significant shift in U.S. financial regulatory policy, which could have far-reaching effects on future capital markets.

Atkins, 66, is a senior financial regulation expert who has long been committed to promoting business freedom and reducing government intervention. His political stance and regulatory philosophy align with conservative financial experts, advocating for market-oriented policies and reducing the regulatory burden on businesses. After the financial crisis in 2008, he publicly opposed bills aimed at strengthening financial regulation, arguing that excessive regulation stifles innovation and business vitality, especially in the fields of digital currency and fintech.

Atkins played an important role in the government transition team as early as 2016, advocating for a more relaxed financial regulatory policy. His appointment may signal that regulators will adopt a more lenient strategy, especially in terms of the digital transformation of financial markets and cryptocurrency regulation.

Atkins supports addressing financial regulatory issues through market-based approaches, emphasizing that the government should respect the free choices of businesses and investors. This concept may create greater space for technological innovation and the development of capital markets, particularly in the fields of cryptocurrency and financial technology. As investment tools for digital assets become more widespread, his policy direction could accelerate the legalization process of digital assets in mainstream financial markets.

Under Atkin's leadership, regulators may focus more on innovative assets and technologies in the financial markets, reducing excessive intervention in traditional markets and promoting the rapid development of emerging financial products. This is seen as a kind of "liberation" for the financial industry, especially in the areas of financial innovation and digital assets that were previously under strict regulation. This shift not only affects investor confidence but may also change the competitive landscape of the entire financial industry.

Looking to the Future

Bitcoin has achieved remarkable growth over 15 years, while giving rise to an entirely new industry. This industry now boasts millions of practitioners, hundreds of millions of users, and hundreds of niche markets. More importantly, as the accumulation of initial assets is completed, the crypto industry is ushering in new development opportunities.

The integration with artificial intelligence, the association with real-world assets (RWA), and the development of new financial products that merge traditional funds with cryptocurrencies will continue to progress. As cryptocurrency technology is widely applied in the real world, we can expect to see more innovative application scenarios in the future.

Bitcoin breaking through 100,000 USD is just the beginning, like a pure child growing into a vibrant teenager, marking the arrival of a whole new era. The cryptocurrency industry is advancing at an unprecedented pace, with the future full of infinite possibilities.