The cryptocurrency Bitcoin, whose rise accelerated with Donald Trump’s victory in the US elections, broke a record by passing the $100,000 mark for the first time in its history. Bitcoin has risen by more than 45% since 5 November. Richard Teng, CEO of cryptocurrency exchange Binance, gave his assessment of Bitcoin’s rise. Richard Teng described Bitcoin’s success as a transformative moment for the crypto asset market, saying:
“FROM A NICHE ASSET TO A MAINSTREAM FINANCIAL INSTRUMENT.
“Today’s milestone marks an important stage in Bitcoin’s journey from a niche asset to a mainstream financial instrument. This rise, which is attracting increasing interest from both institutional and retail investors, reinforces the growing role of crypto assets in the financial ecosystem and encourages wider adoption.”
CRYPTO ASSETS STAND OUT AS A PRESERVATION TOOL AGAINST LOSS OF VALUE
The rise of Bitcoin to $100,000 has been driven by significant structural changes in the market. Changing macroeconomic conditions, positive regulatory signals and institutional investment have driven demand for bitcoin to record levels. The US Federal Reserve’s (Fed’s) shift from its longstanding policy of tightening to lowering interest rates has driven capital into scarce and inflation-proof assets. Bitcoin stood out as a hedge against currency depreciation.
Expectations that a crypto-friendly administration would be elected in the US created a wave of optimism in the market. Promises to make the US a global crypto hub and discussions about the creation of a strategic Bitcoin reserve added to the positive perception of Bitcoin.
BITCOIN IS A VALUABLE PLAYER IN THE GLOBAL FINANCIAL SYSTEM
Bitcoin is also being rapidly adopted in the corporate world. Microstrategy currently holds 1.5% of the total bitcoin supply and is leading the trend to include bitcoin in corporate treasuries. Companies such as Marathon Digital and Microsoft are also reported to be working on model strategies. In addition, the launch of bitcoin ETFs and ETF options has accelerated the integration of bitcoin into mainstream financial markets by making the asset more accessible to institutional investors. Once considered a niche experiment, bitcoin is now a major player in the global financial system.
Richard Teng said of this transformation:
“This historic rise reflects a growing recognition of Bitcoin (BTC) potential as both a store of value and a transformative financial instrument. As more companies and governments adopt crypto assets, we could be on the verge of truly global mainstream adoption.
