Bitcoin surpasses USD $100K, enters top seven assets

Bitcoin has surpassed the USD $100,000 mark, signifying a significant milestone in the realm of cryptocurrency.

This achievement has propelled Bitcoin's total market capitalisation to USD $2.03 trillion, placing it among the world's top seven largest assets. It now stands alongside gold and notable technology companies such as NVIDIA, Apple, Microsoft, Alphabet (Google), and Amazon.

The landmark follows a series of successive all-time highs that occurred after the recent US presidential election. This outcome has bolstered expectations for crypto-friendly regulations, one of several factors contributing to Bitcoin's recent upsurge. Other influential elements include the recent Bitcoin halving, the launch of Bitcoin Exchange Traded Funds (ETFs) in the US and Australia, heightened institutional adoption of digital assets, and speculation regarding the US Government's potential creation of a strategic Bitcoin reserve.

James Quinn-Kumar, Director of Community Engagement for Binance Australia and New Zealand, commented on the milestone: "Bitcoin surpassing USD $100,000 marks a momentous shift in the global financial landscape. In just under sixteen years Bitcoin has become one of the top assets in the world, having transitioned from a niche asset to a mainstream financial instrument. This is quite a miraculous feat."

Quinn-Kumar further stated, "As more institutional investment increases at a dramatic rate, Bitcoin has clearly matured into an institutional-grade asset, becoming an integral part of diversified investment portfolios. It is now arguably risky to not have any exposure to this new asset class."

The cryptocurrency market has experienced considerable momentum in recent months. October witnessed Bitcoin's 7.4% increase and a 2.8% rise in the total crypto market cap, while November saw the entire cryptocurrency market's total market capitalisation rise by 56% since the start of the month. Over USD $5.5 billion has flowed into crypto ETFs, and Bitcoin proxy Microstrategy (MSTR) has seen a 77% increase since November 1.

Binance has reported record-breaking activity following these developments. After the election, the platform registered over 13 million app visits in a single day, and net inflows for November exceeded USD $5 billion, as per data from DeFiLlama.

Institutional and structural market shifts have partly driven Bitcoin's rise. The introduction of Bitcoin ETFs, like BlackRock's iShares Bitcoin Trust (IBIT), has offered sophisticated liquidity options and attracted long-term investments. The IBIT ETF options debuted on 19 November with a US$1.9 billion notional exposure, highlighting the increasing legitimacy and incorporation of cryptocurrency into mainstream finance.

Geopolitical discussions have also emerged around Bitcoin's use as a strategic national asset. The US President-elect, Donald Trump, has expressed support for creating a national Bitcoin reserve. Meanwhile, nations such as El Salvador and Bhutan have begun accumulating Bitcoin as a treasury reserve asset.

A trend of corporate treasury adoption of Bitcoin is becoming evident among public companies, including Semler Scientific, Tesla, Space-X, Block, and Japan's Meta Planet. Microstrategy, a substantial holder of Bitcoin, now commands over 1.5% of the total Bitcoin supply and has outperformed the entire S&P500. This trend, along with Microsoft shareholders voting on a Bitcoin treasury strategy, indicates both growing corporate intrigue and adoption of Bitcoin as a strategic asset.

Remarking on the rapid rise in Bitcoin's value, Mr Quinn-Kumar noted, "At the start of January, one Bitcoin was valued at USD $42K, so progressing to $100K in under a year is a powerful testament to an incredible amount of demand in the market. What we've seen this year is Bitcoin's evolution from a speculative asset into an institutionally approved, new asset class. We expect that this is year one of institutional adoption with plenty more to come."

He added, "Especially amid a backdrop of market optimism and renewed investor confidence, Bitcoin's continued price increase and growing adoption highlight its recognition driven by increasing institutional approvals. This market evolution, alongside increased corporate and national adoption, is setting the stage for a new era in global finance."