Bitcoin has reached a historic milestone, surpassing the $103,999 mark on December 5, 2024. This remarkable rise is driven by a combination of factors fueling market confidence and investor enthusiasm. Here's a detailed breakdown of the key reasons behind this surge:
1. Political Changes in the United States
The election of Donald Trump as U.S. president on November 6, 2024, has significantly impacted Bitcoin's performance. Following his victory, Bitcoin surged by $6,000 in a single day, reaching a then-record of over $74,000. This rally is linked to expectations of pro-crypto policies under the new administration.
2. Regulatory Optimism
The anticipated appointment of Daniel Atkins, a well-known crypto advocate, to a high-ranking regulatory position has heightened optimism within the crypto market. Analysts view this development as a shift toward a friendlier regulatory environment, encouraging increased participation from both institutional and retail investors.
3. Institutional Investment Growth
The past few months have seen significant inflows of capital from institutional investors into Bitcoin. Large investment firms and funds have increased their exposure to the cryptocurrency, creating higher demand and driving prices to unprecedented levels.
4. Monetary Policy and Federal Reserve Statements
Federal Reserve Chairman Jerome Powell recently referred to Bitcoin as a speculative asset akin to gold, lending it further legitimacy. This recognition has bolstered Bitcoin's reputation as a store of value and investment vehicle, attracting more interest from traditional financial markets.
5. Technological Advancements and Adoption
Bitcoin's technological ecosystem continues to advance, with growing adoption as a payment method worldwide. These developments, combined with increasing mainstream acceptance, have reinforced confidence in the cryptocurrency, contributing to its sustained growth.
Sources
CNN Arabic: Bitcoin hits $100,000 as 
pro-crypto Trump administration takes shape
Al Hurra: Bitcoin at record levels: Reasons for the rise and tips for investors
OLX Forex: Bitcoin reaches a historical level of $104,000
