Author: Rachel, Jinse Finance
After consolidating for half a month, Bit finally broke through the $100,000 mark on the morning of December 5, 2024, Beijing time.
What factors have driven Bit to break through the historic $100,000 mark? Jinse Finance summarizes as follows:
1. Trump nominates crypto advocate Paul Atkins as new SEC chairman
On December 4, Trump nominated Paul Atkins to serve as SEC chairman. Paul Atkins is an open crypto advocate. Paul Atkins is the founder of Patomak Global Partners, whose business includes crypto information services, and Paul Atkins serves as an advisor to multiple crypto projects.
Since 2017, Paul Atkins has served as co-chair of the Token Alliance, an industry-led initiative comprising former regulators, industry experts, and lawyers, aimed at driving the mainstream adoption of digital assets. He is also a member of the advisory board of the Digital Chamber of Commerce, a leading crypto advocacy organization based in Washington, D.C.
After the news of Trump's nomination of Paul Atkins as SEC chairman was announced in the early hours of December 5, Bit immediately rose from around $95,000 to $99,000, and broke through the historic $100,000 mark after the news spread.
2. Powell: Bit's main competitor is gold, not the dollar
On December 4, Powell said in a speech that the Federal Reserve has not yet achieved its inflation reduction target, but is still making progress in bringing down inflation. The rise in the price level has caused public discontent, and the employment situation looks good in terms of the number of employed people, but the low-income group is under pressure. These speech contents still fit people's expectations for a further 25BP rate cut by the US in December. At the same time, he also mentioned in the speech that Bit is seen as a speculative asset, and its main competitor is gold rather than the dollar.
3. Russian President Putin unequivocally supports cryptocurrencies: No one can ban Bit
Russian President Putin said at the Russia Calling investment forum on December 4 that no one can stop the development of Bit, "Who can ban Bit? No one can. Who can ban the use of other electronic payment methods? No one can either. Because these are all new technologies. Regardless of the future of the dollar, these tools will develop in one way or another, because everyone is working to reduce costs and improve reliability."
Last week, Putin formally signed an important law that explicitly defines cryptocurrencies as "property" and establishes a comprehensive tax framework for cryptocurrency transactions and mining activities. This law will come into effect on January 1, 2025, marking a critical step for Russia in the regulation and taxation of cryptocurrencies.
4. Stablecoins continue to be issued, with a market cap exceeding $200 billion
The continued issuance of stablecoins has been a sign of hot money inflows, and also represents the issuers' optimism about the future of the overall crypto market. Market data shows that the total market cap of stablecoins has exceeded $200 billion, currently at $200,129,553,664, a new high, with the market cap of Tether's USDT stablecoin being around $135.77 billion. Since Trump's election victory, Tether has issued an additional $17 billion in USDT.
5. The crypto market in South Korea plummets, with a large influx of funds buying the dips
On the evening of December 3, South Korean President Yoon Seok-yeol announced a state of emergency, causing market volatility, with the price of Bit on the Upbit exchange in South Korea briefly dropping to around $60,000, but large sums of funds rushed in to buy the dips. South Korean traders love high-risk, high-return products, and since Trump's election victory, the trading volume of crypto tokens has exceeded the benchmark KOSPI index in South Korea.
6. Bit halving cycle
The most recent Bit halving was in May 2024, and Bit has set a new record high after each of the past three halvings. According to the cycle pattern, the second half of the crypto bull market has just begun, and 2025 will still be a bull market year.
7. Innovation and development in the industry
The development of the cryptocurrency industry, with the current focus on the integration of AI and Web3, has attracted many traditional investors and entrepreneurs, and new application paradigms are gradually unfolding.
