Bitcoin's Record-Breaking Surge
On December 5, Bitcoin achieved a historic milestone, surpassing $100,000 per coin** for the first time. At press time, Bitcoin traded at **$103,400, marking a 7.81% intraday surge and pushing its total market capitalization beyond $2 trillion**. Year-to-date, Bitcoin’s price has skyrocketed by **140%**, with a staggering rally from **$68,000 to $100,000 in just one month since November 4.
Key Market Reactions
- Ethereum followed the bullish trend, trading at $3,839.
- Crypto-related stocks gained momentum globally.
Federal Reserve Chair Powell’s Insight
At the DealBook/Summit conference on December 4, Chair Jerome Powell clarified Bitcoin’s role in the financial ecosystem:
“Bitcoin’s competitor is gold, not the U.S. dollar. It’s a virtual store of value like gold, but its volatility renders it impractical for payments or stable value storage.”
This statement underscores Bitcoin’s perception as a speculative asset rather than a currency challenger.
Meitu’s Strategic Exit: $57 Million Profit
Hong Kong-listed Meitu (01357.HK) capitalized on Bitcoin’s rally, announcing on December 4 that it had sold all its cryptocurrency holdings:
- 31,000 ETH and 940 BTC, netting $79.63 million (~¥571 million) in profits.
- 80% of proceeds will fund a special dividend (HK$0.109 per share), with the remainder allocated to core business growth.
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Background: Meitu initially invested $100 million in crypto during March–April 2021.
Institutional Adoption and ETF Boom
- U.S. Bitcoin ETFs now manage $82 billion** in assets, up from **$28 billion in January 2024.
- BlackRock’s IBIT ETF recorded a single-day inflow of $1.1 billion, signaling robust institutional demand.
Analyst Projections:
- 2024 year-end target: $125,000/BTC.
- 2025 forecast: $200,000/BTC.
Risks and Volatility Warnings
Despite bullish trends, experts urge caution:
Yu Jianing (Blockchain Committee Co-Chair):
“High leverage amplifies risks. Market reversals can trigger cascading liquidations.”
Zhao Wei (OKX Senior Researcher):
“Bitcoin’s near-term trajectory depends on macroeconomic policies and investor sentiment.”
Global Policy Shifts
1. U.S. Regulatory Developments
- Trump-appointed SEC Chair Paul Atkins (pro-crypto advocate) may ease regulations, fueling further institutional adoption.
2. Russia’s Crypto Embrace
President Putin endorsed cryptocurrencies as sanctions workarounds:
“Who can ban Bitcoin? No one.”
- New 2025 tax laws classify crypto as legal property, with plans for a digital ruble.
FAQ Section
Q1: What drove Bitcoin’s rapid rise to $100,000?
A: Institutional ETF inflows, halving anticipation, and macroeconomic uncertainty fueled demand.
Q2: Is Bitcoin a viable alternative to fiat currencies?
A: Powell’s analogy to gold suggests it’s a speculative asset, not a practical currency.
Q3: How did Meitu profit from crypto?
A: Strategic buys in 2021 and timely sales during the 2024 peak yielded $57 million.
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Q4: What are the risks of investing in Bitcoin now?
A: Extreme volatility, regulatory shifts, and leverage-related liquidations pose significant risks.
Conclusion
Bitcoin’s $100,000 breakthrough marks a pivotal moment, blending speculative fervor with institutional validation. While long-term forecasts remain optimistic, investors must navigate high volatility and evolving regulations.
Disclaimer: This analysis is informational only. Conduct independent research before investing.