Bitcoin breaks through the 100,000 USD mark, starting a new journey

On December 5, 2024, around 10:30 AM, Bitcoin ( BTC ) first broke through the $100,000 mark, officially entering the six-figure era. This historic moment marks BTC's market value surpassing $2 trillion, placing it alongside tech giants like Google, far exceeding the market value of silver. From its inception to today, Bitcoin has gone through a 15-year journey.

In 15 years, Bitcoin has grown from nothing to a market value of 2 trillion USD, comparable to top global enterprises. Bitcoin and the entire cryptocurrency market are like a flourishing teenager, full of vitality and infinite possibilities, ready to embrace the challenges of the next 15 years with a new posture.

From $0.0008 to $100,000, Bitcoin has achieved an astonishing increase of over 125 million times in the past 15 years. This achievement makes one wonder what kind of legend Bitcoin will create in the next 15 years.

At the same time, the U.S. Securities and Exchange Commission ( SEC ) welcomes a new chairman, which may bring new development opportunities and regulatory ideas for the cryptocurrency industry. The future development of Bitcoin and cryptocurrencies is worth looking forward to.

Bitcoin's 15-Year Journey

Looking back 15 years, in November 2008, a paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System" authored by Satoshi Nakamoto was published online. This paper systematically elaborated on how to construct an electronic trading system that does not require third-party trust through a peer-to-peer network, bringing revolutionary ideas to the global financial sector.

At that time, the world was experiencing a severe financial crisis. This crisis, which began in the United States, was marked by the collapse of Lehman Brothers, triggering a chain reaction that shook the global financial system. To save the economy, the U.S. government took unprecedented intervention measures, including injecting capital into financial institutions and implementing quantitative easing policies. Although these measures stabilized the market in the short term, they also buried hidden dangers: excessive money supply, increased inflation risks, intensified fluctuations in financial markets, and led to a loss of public confidence in the traditional financial system.

It was against this background that Satoshi Nakamoto conceived a completely new currency system. He hoped to establish a decentralized payment system through technological means, no longer relying on governments and financial institutions. In the traditional financial system, the issuance of currency is controlled by central banks, and transactions are handled by financial institutions such as commercial banks. Although this model has been in operation for many years, it has exposed the problems brought about by centralization, such as excessive reliance on monetary policy, corruption within financial institutions, and a lack of transaction privacy.

The core idea of Bitcoin is to break this traditional model. Satoshi Nakamoto proposed blockchain technology, which is a distributed ledger technology that verifies and records transactions through the consensus mechanism of nodes across the network. With the help of blockchain, Bitcoin has achieved decentralized transactions, allowing users to complete payments directly through a peer-to-peer network without relying on intermediary institutions. This not only improves transaction efficiency but also reduces costs while providing greater protection for transaction privacy.

Two months after the paper was published, on January 3, 2009, Satoshi Nakamoto mined the genesis block of Bitcoin on a small server in Helsinki, Finland. As a reward, he received the first 50 Bitcoins. The timestamp of the genesis block contains a symbolic message: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks." This message not only records the historical background of Bitcoin's birth but also highlights its symbolic significance as a reflection on the traditional financial system.

From the moment the genesis block was born, Bitcoin officially took a historic first step. Although initially only a few tech geeks and cryptography enthusiasts participated, the potential of this emerging phenomenon was gradually recognized by more people. Bitcoin is not just a digital currency; it is a technological revolution. At its core, it is based on decentralization and transparency, opening up new possibilities for payment methods, value storage, and financial innovation.

As time goes by, Bitcoin and the blockchain technology behind it continue to evolve, attracting the attention of countless developers, investors, and businesses. Today, Bitcoin has become a global asset, playing an important role not only in the financial sector but also sparking profound discussions on technological ethics and economic systems. From an initial price of $0.0008 to $100,000, Bitcoin has achieved an astonishing leap in value.

Key Factors for Bitcoin Breakthrough

On January 11, 2024, at 4 AM, the U.S. Securities and Exchange Commission approved 11 spot Bitcoin ETFs. This decision has caused a huge response in global financial markets. As of November 21, 2024, in just 10 months, Bitcoin ETFs have attracted over $100 billion in inflows, nearing 82% of the size of the U.S. gold ETF. This change indicates that Bitcoin is no longer just a high-risk speculative asset for retail investors, but is gradually becoming an important asset for global institutional investors.

With the injection of these funds, the market structure of Bitcoin has undergone a fundamental transformation. Wall Street financial giants, globally listed companies, and even sovereign wealth funds from multiple countries have participated in Bitcoin investments. The rise of institutional investment has made Bitcoin no longer just a "private domain" for cryptocurrency enthusiasts, but an asset class that cannot be ignored in the traditional financial system.

Taking a certain technology company as an example, this company, which was mainly engaged in enterprise software business, has now become the largest holder of Bitcoin in the world. As of December 5, 2024, the company holds more than 402,100 Bitcoins, accounting for 1.5% of the total global Bitcoin supply. To achieve this, the company has cumulatively invested $23.483 billion to purchase Bitcoin, with an average purchase price of $58,402. Currently, the company's paper profit has exceeded $16.7 billion, making it one of the most influential Bitcoin "whales" in the world. Meanwhile, more than 60 publicly listed companies and thousands of private companies have followed suit and joined the ranks of Bitcoin hoarders.

Behind this trend, the shift in U.S. policy has played a key role. The new government quickly removed a series of institutional barriers to the development of cryptocurrency, adopting a more lenient regulatory policy on cryptocurrencies, and even supporting plans to include Bitcoin as a strategic asset in government reserves. This policy relaxation has injected strong confidence into the market, driving more capital into the Bitcoin market and laying the foundation for the financialization and legalization of Bitcoin.

The globalization process of Bitcoin is actually a complex script woven by multiple factors. First, against the backdrop of the interest rate cut cycle implemented in the United States, global capital market liquidity has greatly increased, and the appeal of Bitcoin as a non-traditional asset is becoming increasingly prominent. The entry of large asset management companies has injected a significant amount of institutional funds into the Bitcoin market, enhancing its market recognition. At the same time, some company executives have become fervent supporters of Bitcoin, and by leveraging debt to increase their Bitcoin holdings, they have not only driven up the price of Bitcoin but also caused a dramatic surge in their company's stock prices, forming a "stock price-coin price" spiral effect that encourages more listed companies to follow suit.

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

The financialization process of Bitcoin can be described as a meticulously planned "top-level conspiracy". When the Bitcoin ETF was approved in the U.S. market, Wall Street giants rushed in, and companies began to swallow Bitcoin like whales, the entire market underwent profound changes. Cryptocurrency is no longer just an investment for a small circle; it is gradually becoming an important component of the global capital market, heralding significant transformations in the financial sector of the future.

Through this series of policy adjustments, market changes, and corporate behaviors, Bitcoin's status has undergone a tremendous transformation. In the future, it is very likely to be not only an alternative choice among asset classes but also one of the core assets in the global economic system.

Impact of the New SEC Chairman

In addition to the above factors, another important reason that has prompted Bitcoin to break through 100,000 USD is the confirmation of the new chairman of the U.S. Securities and Exchange Commission ( SEC ).

On the early morning of December 5, 2024, the newly elected president announced on his social media platform that Paul Atkins would serve as the new chairman of the U.S. Securities and Exchange Commission. This decision marks a significant shift in U.S. financial regulatory policy and could have far-reaching implications for the future of capital markets. Paul Atkins, 66, is a seasoned financial regulatory expert who has long been dedicated to promoting business freedom and reducing government intervention.

Atkins' political stance and regulatory philosophy align with many conservative financial experts; he advocates for more market-oriented policies and calls for a reduction in the regulatory burden on businesses. After the global financial crisis in 2008, he publicly opposed bills that sought to strengthen regulation of financial institutions, arguing that excessive financial regulation stifles innovation and business vitality, particularly in the areas of digital currency and financial technology. This position has made him one of the representatives of market liberalism.

Atkins' political influence was already evident during the previous government. At that time, he played an important role in the transition team, advocating for the government to adopt a more relaxed financial regulatory policy and arguing for the withdrawal of many regulatory regulations that affected the free operation of financial markets. This position was implemented after the previous government took office, and the government also explicitly expressed support for reducing the regulatory burden on financial institutions.

According to media reports, the appointment of Atkins may signal that the U.S. Securities and Exchange Commission will adopt a more lenient regulatory strategy, particularly regarding the digital transformation of financial markets and cryptocurrency regulation. Atkins has repeatedly stated that he supports addressing financial regulatory issues through market-oriented means and emphasizes that the government should respect the free choices of businesses and investors. His regulatory philosophy may create greater space for technological innovation and capital market development, especially in the fields of cryptocurrency and financial technology. With the proliferation of digital asset investment tools such as Bitcoin ETFs, Atkins' policy direction may accelerate the process of legitimizing digital assets in mainstream financial markets.

In addition, under the leadership of Atkins, the U.S. Securities and Exchange Commission may pay more attention to innovative assets and technologies in the financial markets, reducing excessive intervention in traditional financial markets and promoting the rapid development of emerging financial products. His appointment is also seen as a kind of "unblocking" for the financial industry, especially in a series of financial innovations and digital assets that were originally subject to strict regulation. This shift will not only affect investor confidence but may also change the competitive landscape of the entire financial industry.

Summary

Bitcoin has achieved an astonishing growth of 125 million times in 15 years, while bringing a whole new industry to the world. This industry already has tens of millions of practitioners, hundreds of millions of users, and hundreds of segmented tracks. More importantly, the cryptocurrency industry, which has completed its initial asset accumulation, is迎来新的机遇. The integration with artificial intelligence, RWA associated with real-world assets, and fields related to the convergence of traditional funds and cryptocurrency, such as coin-stock parity and wealth management, will further develop. With the large-scale application of cryptocurrency technology in the real world, we will see more innovative cryptocurrency applications emerge in the future.

Bitcoin breaking through $100,000 is just the beginning, much like an innocent child growing into a vibrant teenager, marking the arrival of a whole new era. The cryptocurrency industry is standing at a new starting point, with the future full of limitless possibilities.