Bitcoin Hits New All-Time High Above $100,000 and the Bull Run Ahead: New Digital Gold?

Bitcoin reached a fresh all-time high of $103,656 on December 4th, 2024. The price is up 8.025% in the last 24 hours with a gain of $7,700. The market capitalization for Bitcoin now stands at $1.93 trillion, accounting for 49.5% of the total cryptocurrency market. The trading volume in the last 24 hours topped $48.3 billion on the back of a frenzy of institutional and retail interest. This puts the cryptocurrency up 19.4% over the last month and 67% since the beginning of 2024.

Source: KuCoin

This month institutional investors have piled in $9.2 billion into Bitcoin. Strong interest has also developed for spot Bitcoin ETFs: ProShares Bitcoin Strategy ETF brought in inflows of $2.1 billion since November. Some analysts are estimating that Bitcoin could surge as high as $125,000 to $130,000 by the end of 2024 as demand for regulated Bitcoin investment vehicles continues to soar.

In November, Grayscale added 12,400 BTC and brought the total count in Bitcoin Trust to 711,000 BTC-worth $73.5 billion. Fidelity Digital Assets reported a 22% surge in institutional client activity over the past month. These investments are a sign that big financial players are increasingly confident of Bitcoin as an emerging long-term asset class.

Currently, the business intelligence firm holds more than 158,245 BTC, equivalent to $16.4 billion, after adding 3,200 BTC in this quarter. Overall, publicly traded companies collectively hold more than 294,000 BTC, or $30.4 billion - a sign of corporate adoption toward Bitcoin.

Read More: Bitcoin Price Prediction 2024-25: Plan B Forecasts BTC at $1 Million by 2025

The already rallying Bitcoin has been given increased momentum by the pro-crypto stance of President-elect Donald Trump himself. Trump's nomination to the position of SEC Chair indicates a possible shift toward good regulations for the cryptocurrency because Atkins is known for his balanced, transparent policies. Atkins served at the SEC from 2002 to 2008 as commissioner.

“Paul is the CEO and Founder of Patomak Global Partners, a risk management consultancy,” Trump said. “As Co-Chairman of the Digital Chamber’s Token Alliance since 2017, he has worked on and studied the digital assets industry.” Trump stated.

This comes after years of aggressive enforcement under Gary Gensler's helm. Between 2021 and 2023, the SEC filed 104 lawsuits against crypto firms, making the industry cough up about $426 million in legal fees. According to analysts, the clearer guidelines under Atkins's chair will significantly reduce the regulatory barriers to adoption that have held Bitcoin back.

Confidence has also been boosted by the green-lighting of multiple spot Bitcoin ETF applications by the SEC. Such ETFs offer institutional investors regulated paths to exposure to Bitcoin and have heated up demand. According to analysts, spot ETFs could bring in an additional $17 billion of institutional inflows in mid-2025.

Source: X

Federal Reserve Chair Jerome Powell described Bitcoin as "like gold only virtual and digital" in a speech at The New York Times DealBook Summit. Powell underlined that it is a speculative asset, and despite high volatility, it looks to be here to stay. The price of Bitcoin sat close to $103,000 during his comments, a nod to the growing perception of the digital asset as a hedge against inflation and economic uncertainty.

The increasing role of Bitcoin as a store of value makes it comparable to gold. A circulating supply of 19.5 million BTC makes Bitcoin a scarcity and a deflationary model, hence interesting for investors looking for alternatives. Market capitalization of gold is $13 trillion, while the current market capitalization of Bitcoin is $1.93 trillion, underlining its potential to grow as digital gold.

Adoption has increased from 300 million users in 2022 to more than 420 million users globally in 2024. In November, El Salvador added $120 million worth of Bitcoin to its national reserves, increasing its holdings to 4,400 BTC as part of the country's plan to introduce Bitcoin into its economy as legal tender.

Germany has 12,900 active Bitcoin nodes, up 14% this year. Its node count is second only to the United States, housing 36,200. These figures reflect the decentralization of Bitcoin and the security of its global network.

The United Arab Emirates is introducing blockchain technology into its trade finance system, projected to process $500 billion worth of transactions by 2025. This will reflect Bitcoin's potential usage in global trade and commerce.

Source: Triple-A

Source: Triple-A

Among Asian markets, one of the most active markets, retail traders from South Korea contributed $4.2 billion in Bitcoin trading volume last month. Recently, Japan reformed its regulatory framework by allowing banks to store Bitcoins with plans for an implementation as early as 2025.

Source: Triple-A

According to Triple-A, with a compound annual rate (CAGR) of 99% the growth in ownership of cryptocurrencies far exceeds the growth rate of traditional payment methods, which average at 8% from 2018 to 2023. In fact. Within the same period, the growth rate for cryptocurrency ownership surpasses that of several payment giants such as American Express.

The price action of Bitcoin doesn't slow down. According to analysts, Bitcoin’s price prediction is $125,000 dollars by the end of 2024 and will climb with a market capitalization of over $2.3 trillion. Come 2025, its global adoption will surge past 500 million users due to interests shown by institutions, regulatory clarity, and technological advancement.

Miners pocketed $1.9 billion in revenue last month, with hash rates reaching 480 EH/s, up 32% YoY. Such growth cements the security and resilience of the network while Bitcoin continues to scale globally.

Kalshi, the prediction platform’s data highlights increasing confidence in Bitcoin’s long-term potential. While the chances of reaching $150,000 by the end of 2024 remain moderate, Bitcoin’s record-breaking performance in 2023 shows its capacity to achieve new milestones. With rising adoption and strong institutional inflows, Bitcoin appears poised to close 2024 at historic levels, cementing its role as a key player in the global financial system.

Source: Kalshi

Bitcoin's rise to $103,656 is a momentous event for the digital currency markets underpinned by $9.2 billion of institutional inflows, spot ETF approvals, and organic global adoption. At $1.93 trillion stretched out to $125,000, Bitcoin is set in place as a digital asset of global importance. It has not only become a store of value but has also become a means to connect traditional finance with blockchain technology. This is a representation of Bitcoin's transition from a speculative investment to one of the founding blocks of the future economy.