Bitcoin’s Stunning Revival: Surpassing $100,000 Two Years After FTX’s Collapse, Boosted by Wall Street Bets
Bitcoin has defied expectations, soaring past the $100,000 mark on Wednesday night—a milestone long awaited by crypto enthusiasts. This remarkable surge comes just two years after the collapse of key industry players in 2022, including the infamous implosion of the FTX exchange.
The world’s leading cryptocurrency surged over 5% to reach a peak of $103,853, representing an extraordinary 520% increase from its November 2022 low of under $16,000. Year-to-date, Bitcoin has climbed approximately 146%, as reported by CoinDesk.
A Shift in Regulatory Winds
The rally was buoyed by political developments, as President-elect Donald Trump announced plans to nominate Paul Atkins, a crypto-friendly figure, to lead the Securities and Exchange Commission (SEC). Atkins is expected to replace the outgoing SEC Chair, Gary Gensler, whose tenure has been criticized by the crypto industry as overly restrictive, despite expanding regulated investment avenues for digital assets.
Optimism around Atkins’ leadership has sparked hopes of a more supportive regulatory environment under the incoming administration.
Institutional Adoption Powers the Rise
A critical factor in Bitcoin’s 2024 ascent has been its growing mainstream acceptance. In January, the SEC approved several exchange-traded funds (ETFs) directly investing in Bitcoin, unlocking access for institutional investors. This move attracted major players like BlackRock and other global asset managers, dramatically expanding the cryptocurrency’s investor base.
“The $100,000 milestone is psychologically significant,” said Peter Chung, head of research at algorithmic trading firm Presto. “Humans have a fixation with round numbers. This achievement will likely amplify public and media attention, further fueling Bitcoin’s growth.”
Concerns Over Sustainability
Despite the enthusiasm, Bitcoin’s journey to $100,000 has been marked by volatility, a reminder of the asset’s inherent risks. Critics and analysts alike caution that sustaining such a rally depends on underlying factors, including regulatory clarity and broader adoption.
Federico Brokate, head of U.S. business at 21Shares, noted that while the milestone signifies the maturing of the asset class, it’s the driving forces behind the rally that truly matter. “The industry’s focus is on long-term adoption and regulatory progress,” Brokate emphasized.
The Road Ahead
As Bitcoin crosses into six figures, the crypto market faces a critical juncture. Whether this rally translates into sustainable growth or marks the peak of speculative enthusiasm remains to be seen. However, the cryptocurrency’s resurgence has cemented its role as a force to be reckoned with in the global financial landscape.
