Bitcoin Has Passed the Magic $100,000 Mark!

Bitcoin, the most famous and popular cryptocurrency, passed the magical $100,000 mark for the first time in history on Wednesday night (4.12-5.12.) and reached its all-time high of $103,900 (€98,644). Bitcoin’s price has been rising significantly over the past month, with Bitcoin up nearly 40% during November alone. It has appreciated over 130% since the beginning of the year and is one of the best-performing assets in the world.

Bitcoin’s monthly and all-time high comes exactly one month after Donald Trump’s victory in the 2024 U.S. presidential election, which took place on 5 November. Trump’s victory kick-started the entire crypto market, as Trump demonstrated a very positive attitude towards cryptocurrencies in his election campaign.

Just two years ago, after the FTX cryptocurrency crash, Bitcoin was trading at around USD 16,000 at the same time – meaning it has appreciated by up to 550% in the last two years. Bitcoin’s growth has made it one of the top 10 most valuable assets in the world in terms of market capitalization, surpassing Saudi Aramco and Meta in market capitalization over the past few weeks. With a market capitalization of $2.02 trillion, Bitcoin is already larger than one of the most well-known commodities, silver, which currently has a market capitalization of $1.79 trillion.

The crossing of the $100,000 mark is partly related to the significant influx of stablecoins into cryptocurrencies, which reached a record monthly high of over $9.7 billion in November. During November alone, Tether (USDT) increased its market capitalization by more than 14 billion. This is a very optimistic signal going into the upcoming calendar year 2025.

Spot ETFs Are Breaking Records

Spot Bitcoin ETFs, which were officially approved in the U.S. in January of this year, have made a significant contribution to the availability and ease of access to Bitcoin investing for the general public. These financial instruments allow investors to gain exposure to Bitcoin without the need to own it directly, removing the complications associated with managing cryptocurrencies or safely storing private keys. In addition, the approval of spot ETFs in the U.S. has enhanced the legitimacy of cryptocurrencies in traditional financial markets and contributed to increased trading volume and interest from institutional investors. This has created new momentum for the wider adoption of Bitcoin as an investment asset.

Since the beginning of this week, in the first three trading days, Bitcoin ETFs have seen capital inflows of up to nearly $1.6 billion, with spot BTC ETFs seeing net capital inflows of $4.8 billion year-to-date as of November 18.

Source: Farside 

U.S. Considers Creating Bitcoin Reserves – Is a Global Trend Starting?

Recently, the possibility of including Bitcoin in the national reserves has been increasingly discussed in the U.S. Although nothing is 100% certain yet, the very discussion on this topic suggests that Bitcoin is no longer seen as a mere experiment or speculative asset, but as a real tool for preserving value. If the U.S. were to take concrete steps to create Bitcoin reserves, this could have a significant impact on other countries and the global financial system.

Why Is the U.S. Considering Creating Bitcoin Reserves?

1. The high indebtedness of the United States:
   U.S. Senator Cynthia Lummis has proposed a bill that would allow the U.S. to create a strategic Bitcoin reserve of 1 million BTC over five years. The reserve would be funded through the Federal Reserve’s surplus reserves without burdening taxpayers and would be used to reduce the national debt in excess of $35 trillion. The U.S. already owns approximately 210,000 BTCs, which it plans to include in this initiative. Bitcoin would be held for a minimum of 20 years and provide protection against dollar inflation and devaluation of fiat assets. If implemented, this plan could serve as a model for other countries, strengthening Bitcoin’s position as a global reserve asset.
   
   
2. Hedging against inflation:
   The dollar is facing rising inflation, which is undermining its purchasing power. Bitcoin as digital gold offers the possibility of value protection thanks to its limited supply of 21 million units. This is increasingly being realised by policymakers, who no longer see Bitcoin as just a speculative asset.
   
   
3. Diversifying reserves:
   Most of the government reserves are composed of fiat currencies (USD, EUR) and precious metals (gold). The inclusion of Bitcoin could improve the resilience of reserves to economic shocks and diversify reserves.
   
   
4. Technological and geopolitical pressures:
   Countries like El Salvador are already actively accumulating Bitcoin and China is testing the digital yuan. For the U.S., investing in Bitcoin may also be a strategic move in the technological and financial struggle for global influence.
   

If the United States were to officially announce the inclusion of Bitcoin in its reserves, it would likely trigger a global domino effect. In this scenario, increased interest from other countries could be expected, as states might follow the U.S. example to remain competitive and keep up with technological trends. Such a move would underscore Bitcoin’s position as a global asset and boost confidence in cryptocurrencies. The influx of capital from additional nations could significantly impact Bitcoin’s price, motivating other countries to purchase it as well. This development has the potential to raise the price of Bitcoin to millions of dollars.

Still Hesitating About Investing in Cryptocurrencies?

Perhaps now is the right time to consider the potential that the cryptocurrency market offers in its current phase. Bitcoin, often referred to as digital gold, is becoming a strategic reserve for companies and governments, with its limited supply making it a highly valuable and unique asset. Cryptocurrencies also provide access to innovations like DeFi, NFTs, and AI, which are transforming and complementing traditional industries. While investing in cryptocurrencies still carries certain risks, the right approach, education, and diversification can be the keys to long-term success. It’s never too late to start investing.

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