After Bitcoin breaks through $100,000, crypto assets are about to change

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Author: Torobo Finance

Bitcoin has finally broken through $100,000.

After experiencing a 2-week correction and volatility, Bitcoin today returned to its peak, surging from $98,000 to break through $100,000, officially embarking on a new six-digit journey. As of the time of writing, Bitcoin is currently trading at $102,649, up more than 6.29% intraday. Ethereum also did not lag behind, successfully standing at $3,900, currently at $3,917.42, up 5.77% intraday.

The psychological barrier has been broken, and market volatility is also intensifying. According to Coinglass data, as of the time of writing, 213,167 people were liquidated within 24 hours, with a total liquidation amount of $677.43 million, of which $369 million were long positions and $308 million were short positions.

In terms of news, the nomination of the new SEC chairman has released more positive sentiment. According to Jinshi, on Wednesday, US President-elect Donald Trump said he had formally nominated Paul Atkins to serve as chairman of the US Securities and Exchange Commission (SEC).

Compared to the previous iron-fisted leader Gensler, Atkins' attitude towards cryptocurrencies is more than just friendly. From his resume, Paul Atkins graduated from Wofford College, joined the New York law firm Davis Polk & Wardwell after graduation, and officially joined the SEC in 1990, known for opposing "imposing large fines on companies that violate securities laws".

During his tenure, Atkins has been committed to seeking a balance between promoting innovation and strengthening investor protection, and has assisted the SEC chairman in formulating a number of key regulations. In the direction of digital assets, he has also served as co-chairman of the Token Alliance, an industry association that advocates for the digital asset and blockchain industry, since 2017. Atkins has also repeatedly advocated for the crypto industry, saying that the SEC's enforcement actions have stifled the development of the US crypto industry and calling for reduced regulation of cryptocurrencies. More importantly, Paul Atkins is also the official advisor of the RSR token.

It can be seen that the incoming chairman has rich experience in regulatory construction, and he himself has token backing, and also presents a very positive attitude towards digital assets, which can help build a more clear and inclusive regulatory framework for digital assets. In the appointment announcement, Trump also praised him highly, stating that "Paul Atkins believes that sound, innovative capital markets can meet the needs of investors and provide the capital to make our economy the best in the world. He also recognizes that digital assets and other innovations are critical to making America stronger."

Just yesterday, there was a bit of a mess in the market around the news of whether Paul Atkins could be appointed as SEC chairman, with token frontrunning and fake news spreading, and Bitcoin also took a roller coaster ride. Of course, Paul Atkins is currently only nominated, and he still needs to be confirmed by the Senate, and his own willingness will also determine who will occupy this precious regulatory seat.

Compared to who the SEC chairman is, for the market, the more important thing is the visible arrival of the new crypto era, the initial display of the regulatory framework promised by Trump, whether from the emotional or factual perspective, this is a critical boost.

Returning to Bitcoin itself, from 2010 when Laszlo Hanyecz spent 10,000 Bitcoins to buy a pizza, giving Bitcoin a real price scale, to now Bitcoin breaking through six digits, 16 years have passed.

As the once sky-high pizza fades into oblivion, the "Ponzi scheme" that was once mocked and ridiculed by the mainstream, or the "financial experiment" that was objectively called, Bitcoin has also become the most successful investment product in the past 16 years, creating an unimaginable growth miracle. According to the price of the Bitcoin pizza, BTC has now risen 40 million times, and even just this year, BTC has risen 135%. Currently, the total value of all circulating Bitcoins has reached $2 trillion, surpassing the total value of Mastercard, Walmart and JPMorgan Chase, and in the global asset ranking list of Companies marketcap, the market value of Bitcoin has surpassed silver and ranked 7th in the world.

This social experiment has undoubtedly been a success. Perhaps it is still too early to talk about surpassing sovereign currencies, but this is undoubtedly a comprehensive victory for decentralized currencies from the bottom up, a victory for the participants made up of geeks and grassroots. In the not too long or short 16 years, Bitcoin has gradually shed the stigma of money laundering and fraud, and has gradually moved from digital gold to supranational currency, deriving a new and more autonomous, faster and more transparent financial system as the center of the crypto world, and Web3 is also rapidly evolving on the path of transforming traditional financial infrastructure.

Purely from an asset perspective, $10,000 Bitcoin and $100,000 Bitcoin carry very different implications. $10,000 Bitcoin could be seen as a product of self-indulgence in a small circle, a fantasy of dreamers, but when $100,000 Bitcoin appears, the mainstream world is inevitably focused on it, and a new era of digital assets is slowly unfolding.

Good assets are always bought more when they fall, but for Bitcoin, the main theme is to buy more when it rises, and the price will make it truly recognized as a good asset. Bitcoin breaking through $10,000 attracted the entry of Grayscale; Bitcoin breaking through $50,000 saw MicroStrategy rushing in; when Bitcoin broke through $60,000, global institutions like BlackRock, Fidelity, and Franklin began to rush in; when Bitcoin surpassed $100,000, its supranational currency nature became prominent, and becoming a national reserve may become a reality.

Just yesterday, Putin spoke at an investment forum in Moscow, advocating the use of BTC as a global reserve asset rather than the US dollar, with the core reason being that "no one can ban BTC".

It can be foreseen that the next steps for Bitcoin will be key words such as listed company purchases, traditional institution participation, and the establishment of national reserves, and user popularization will be the inevitable path for Bitcoin.

In terms of numbers, the user base of the crypto market is still surprisingly small. According to a16z's estimate, the current global monthly active cryptocurrency users are about 30-60 million, but these few million crypto users have created a $3 trillion crypto empire. If combined with the global 5.4 billion Internet population, the potential behind it is self-evident.

From the perspective of national reserves, currently, due to the protection of sovereign currencies and financial security considerations, the vast majority of mainstream regions have strict purchase conditions for cryptocurrencies, and only the third world countries suffering from inflation see Bitcoin as an alternative to currency. If the US includes it in its national reserves, when 1 million Bitcoins enter Congress, the international imagination of Bitcoin may truly be unleashed.

So far, Bitcoin's market capitalization is still more than 7 times less than gold's $15 trillion, but the growth miracle in the past 16 years has made this growth target within reach. $100,000 may just be the beginning.

Even Federal Reserve Chairman Jerome Powell recently stated that Bitcoin is not a competitor to the US dollar, but a competitor to gold, and that it has not yet been widely used as a means of payment, with high price volatility, and that individuals are not allowed to hold it solely for identity reasons.

From the development path, Bitcoin's small step is a big step for the crypto industry. Mainstream adoption is not just a symbolic representation of Bitcoin, but will also allow the once hidden crypto participants to come to the forefront with the posture of value investors. Altcoins have also successfully opened up new paths.

Currently, there are 16 new crypto ETFs that have officially submitted applications to the SEC, with Grayscale and Bitwise launching a basket of cryptocurrency indexes, while institutions led by VanEck, 21shares, Canary, and Wisdomtree are targeting Altcoin ETFs, with Solana, XRP, Litecoin, and HBAR officially becoming participants in the ETFs. On the upcoming January 25th, many ETFs will face their first concentrated review period.

Whether or not they are approved, but perhaps thanks to the soon-to-be SEC chairman and the institutional endorsement, the long-awaited Altcoin season, which has been in constant refutation for nearly 3 years, has finally arrived.

Looking at the market performance, in contrast to the crypto principle of not chasing new coins but old ones, the speculators in this bull market have finally started to reminisce. With Ethereum successfully breaking through $3,800, SOL and BNB have hit new highs in succession, and TRON has even broken a seven-year record since January 2018, soaring 69% in a single day.

The large-cap zombie Tokens that were previously listed by Forbes have also suddenly come back to life. XRP has risen from $0.5 on November 5 to $2.7, reaching a high of $2.8, surging 500% in the month, and up 53.70% in the last 7 days. ALGO and XLM have soared 4 times in 30 days, and even the long-dormant ADA and EOS have risen over 200% in 30 days.

The rise in Token prices has pushed the market's emotional symphony to a climax, accelerating the mainstreaming of crypto assets and increasing value recognition. And all of this is based on the realization of BTC.

It must be admitted that BTC also has its limitations.

Although BTC, born in the midst of a currency crisis, has begun to be seen as a sovereign currency by some countries, it is still far from truly realizing a unit of account and a medium of exchange. And the title of "digital gold" has made BTC more of an inflation-resistant investment product than a stable trading currency.

The decentralized values of the crypto world are also inevitably impacted, and the side effects of mainstreaming - the trend of crypto assets being dollarized - are constantly emerging. Compared to BTC, the total net asset value of 11 BTC spot ETFs in the US is $108.23 billion, accounting for 5.54% of BTC's market value. And from a national perspective, the US holds over 210,000 BTCs, making it one of the largest BTC holders in the world.

Against this backdrop, the decisive role of the US in the crypto field is irreplaceable, and Wall Street institutions have successfully replaced retail investors as the carriers and controllers of value, making the core assets increasingly distant from ordinary people, which has become an inevitable trend.

But fortunately, the public fruit born of private desires is still spreading. The imagination economy represented by cryptocurrencies is still soaring, and the opportunity for young people to turn their fortunes around with small bets has not yet dissipated, with the dream of getting rich quickly wrapped in the hope of freedom, shining brightly in the increasingly specialized and class-solidified modern society, attracting the arrival of many new Z-era participants.

The creators of all this are the countless crypto practitioners. Today, many practitioners are showing off the goods they once spent "a fortune" on, like a computer for 245 BTC, headphones for 67 BTC, and a burger for 30 BTC, and in the "most expensive in history" jest, everyone knows that without the painstaking efforts of these practitioners, the crypto world might not have persisted to this day.

The new era of crypto assets is about to arrive, and in this victory of the crypto masses, each participant should be rewarded by time for their perseverance.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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