Bitcoin breaks through the $100,000 mark, ushering in a new era of digital finance.

On December 5, 2024, at 10:30 AM, Bitcoin (BTC) finally broke through the important threshold of $100,000, officially entering the six-figure era. This historic breakthrough has pushed Bitcoin's market value to over $2 trillion, on par with tech giant Google, far exceeding the silver market. Since its inception, Bitcoin has gone through a journey of 15 years.

In the past 15 years, Bitcoin has grown from nothing to a massive market valued at 2 trillion dollars. The entire cryptocurrency industry has also gradually evolved from an infant to a vibrant teenager, poised to embrace the challenges and opportunities of the next 15 years.

Looking back, the increase in Bitcoin's value is astonishing. From an initial $0.0008 to now $100,000, it has grown by more than 125 million times over 15 years. Such an incredible growth trajectory makes one wonder what miracles Bitcoin will create in the next 15 years.

At the same time, changes in the U.S. policy environment have brought new development opportunities for Bitcoin and the entire cryptocurrency industry. The newly appointed leaders of regulatory agencies are expected to inject new vitality into the industry and create a new development landscape.

Bitcoin's 15-Year Journey

Let's turn back time 15 years. In November 2008, a paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System" authored by Satoshi Nakamoto was published online, systematically explaining how to create an electronic transaction system that does not rely on third-party trust through a peer-to-peer network, bringing disruptive ideas to the global financial sector.

At that time, the world was experiencing an unprecedented financial crisis. This crisis, which began in the United States, was marked by the collapse of Lehman Brothers, triggering a chain reaction that not only shook the American financial system but also affected the global economy. To save the economy on the verge of collapse, the U.S. government implemented unprecedented intervention policies, including injecting huge amounts of public funds into financial institutions and implementing quantitative easing policies. Although these measures stabilized the market in the short term, they also laid hidden dangers: excessive money issuance, increased inflation risks, intensified fluctuations in financial markets, and even led to public distrust in the traditional financial system.

It is against this backdrop that Satoshi Nakamoto proposed the concept of designing a brand new currency system. He hoped to build a decentralized payment system using technological means, no longer relying on governments and financial institutions. In the traditional financial system, the authority to issue currency is monopolized by central banks, while transactions are recorded and processed by commercial banks and other financial institutions. Although this model has been in operation for many years, it inevitably exposes the problems brought about by centralization, such as excessive reliance on monetary policy, corruption within financial institutions, and the lack of transaction privacy.

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

Just two months after the paper was published, on January 3, 2009, Satoshi Nakamoto mined the genesis block of Bitcoin on a small server located in Helsinki, Finland. As a reward, he received the first 50 Bitcoins. The timestamp of the genesis block also notably contains a phrase with symbolic meaning: "Chancellor on brink of second bailout for banks." This phrase not only documents the historical context 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 its historic first step. Although initially only a small number of 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 also a technological revolution. It is centered around 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 enterprises. Today, Bitcoin has become a global asset, playing a significant role not only in the financial sector but also sparking profound discussions on technological ethics and economic systems.

Key Factors Behind Bitcoin's Breakthrough

On January 11, 2024, the U.S. Securities and Exchange Commission approved 11 spot Bitcoin ETFs, including one from BlackRock. This move has caused a huge reaction in the global financial markets. As of November 21, 2024, in just 10 months, Bitcoin ETFs have attracted over $100 billion in inflows, which is close to 82% of the size of U.S. gold ETFs. This change means that Bitcoin is no longer just a high-risk speculative product dominated by scattered 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. Financial giants on Wall Street, global publicly listed companies, and even sovereign wealth funds from multiple countries are participating in this battle to acquire Bitcoin. The rise of institutional investment has made Bitcoin not only a "private domain" for cryptocurrency enthusiasts but also an asset class that cannot be ignored within the traditional financial system.

Taking a well-known company as an example, this company, which was once mainly focused on enterprise software, has successfully transformed into the world's largest holder of Bitcoin. As of December 5, 2024, the company holds over 402,100 Bitcoins, accounting for 1.5% of the global Bitcoin supply. To achieve this goal, the company has spent a total of $23.483 billion to acquire Bitcoin, with an average purchase price of $58,402. Today, the company's book profit has exceeded $16.7 billion, making it one of the most influential Bitcoin "whales" in the world. Meanwhile, over 60 listed companies and thousands of private companies are also quietly following suit, joining the ranks of Bitcoin hoarders.

Behind this trend, the shift in U.S. policy has played a crucial role. After the new government took office, it quickly cleared a series of institutional barriers to the development of cryptocurrencies, adopted a more lenient regulatory policy for cryptocurrencies, and supported the plan to include Bitcoin as a strategic asset in government reserves. This easing of policy has injected strong confidence into the market, driving more capital to flow into the Bitcoin market, and laying a solid foundation for the financialization and legitimization of Bitcoin.

The globalization process of Bitcoin is actually a complex script woven together by multiple factors. First, against the backdrop of the interest rate cut cycle in the United States, the liquidity of the global capital market has greatly increased, and Bitcoin, as a non-traditional asset, has become increasingly attractive. The entry of Wall Street giants has injected a large amount of institutional funds into the Bitcoin market and provided it with higher market recognition. At the same time, some CEOs of listed companies 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 led to a surge in their company’s stock prices, creating a "stock price---coin price" spiral effect, which has encouraged 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 has also proposed to make Bitcoin a strategic reserve asset for the United States. This historic decision has further intensified the "normalization" process of Bitcoin, transforming it from an emerging speculative tool into a part of the global financial system.

The financialization process of Bitcoin can be described as a carefully orchestrated "top-level conspiracy". When Bitcoin ETFs are approved in the US market, Wall Street giants rush in, and companies swallow Bitcoin like whales, profound changes are happening in the entire market. Cryptocurrencies are no longer just an investment product for a small circle; they are gradually becoming an important component of the global capital market, heralding a deep transformation in the future of the financial sector.

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

Impact of New Regulatory Agency Leaders

In addition to the numerous reasons mentioned above, another important factor that contributed to Bitcoin's breakthrough of 100,000 USD is the confirmation of new leaders in regulatory agencies.

In the early hours of December 5, 2024, the government announced the new leadership selection for the regulatory agency. This decision marks a significant shift in U.S. financial regulatory policy, which could have far-reaching effects on future capital markets. The new leader is a financial regulation expert with a deep background, who has long been committed to promoting business freedom and reducing government intervention.

The political stance and regulatory philosophy of the new leader align with many conservative financial experts, advocating for more market-oriented policies and arguing for a reduction in the regulatory burden on businesses. After the global financial crisis in 2008, he publicly opposed bills that aimed to strengthen regulation of financial institutions, believing that excessive financial regulation stifles innovation and commercial vitality, especially in the fields of digital currency and fintech, making him one of the representatives of market liberalism.

The political influence of the new leader had already emerged during the previous government period. At that time, he played an important role in the government transition team, pushing the government to adopt more relaxed financial regulatory policies and advocating for the withdrawal of many regulatory measures that affected the free operation of financial markets. This position was implemented after the previous government took office, and the government also clearly expressed its support for reducing the regulatory burden on financial institutions.

According to media reports, the appointment of the new leader may signal that regulatory agencies will adopt a more lenient regulatory strategy, particularly regarding the digital transformation of financial markets and the regulation of cryptocurrencies. The new leader has repeatedly stated that he supports solving financial regulatory issues through market-oriented means and emphasizes that the government should respect the free choices of enterprises and investors. His regulatory philosophy may provide greater space for technological innovation and the development of capital markets, especially in the fields of cryptocurrencies and financial technology. With the popularization of digital asset investment tools such as Bitcoin ETFs, the new leader's policy direction may accelerate the legalization process of digital assets in mainstream financial markets.

In addition, under the leadership of the new leader, regulatory agencies may pay more attention to innovative assets and technologies in the financial market, 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 "liberation" for the financial industry, especially in a series of financial innovations and digital assets that were previously subject to strict regulation. This shift will not only affect investor confidence but may also change the competitive landscape of the entire financial industry.

Conclusion

Bitcoin has achieved a 125 million times increase in value over 15 years, bringing a completely new industry to this world. This industry already has tens of millions of practitioners, hundreds of millions of users, and hundreds of niche tracks. More importantly, the cryptocurrency industry, which has completed the accumulation of initial assets, is迎来全新的曙光. The combination with AI, the correlation with real-world assets (RWA), and the coupling of traditional funds with cryptocurrency funds in areas such as coin-stock parity and wealth management will further develop. As cryptocurrency technology is adopted on a large scale in reality, we can expect to see more applications of cryptocurrency in the future. Bitcoin breaking through 100,000 is just the beginning, like a pure child stepping into a vibrant youth; this is a whole new beginning.