Bitcoin (Finally) Hits $100K - BRN Explains Why
Bitcoin has finally hit the six-figure mark, surpassing the $100,000 hurdle, returning over 137% year-to-date.
The $100K figure, albeit somewhat arbitrary, reflects the market's overwhelming confidence in Bitcoin and cryptocurrency as an investment asset.
Appearing on Money FM's 'Money Matters: The Wealth Tracker' yesterday, hours before Bitcoin hit $100,000, BRN analyst Valentin Fournier told host Hongbin Jeong that there were a number of factors pushing Bitcoin towards $100,000.
Bitcoin Reserves
Stockpiling Bitcoin is becoming an increasingly popular strategy for companies looking to boost their reserves.
Earlier this week, listed crypto miner Marathon Digital revealed it was looking to raise $700 million to strengthen its Bitcoin reserves while revealing boosts in revenue and production.
Proceeds will primarily go toward bolstering MARA's Bitcoin reserves, with up to $50 million allocated for repurchasing 2026 convertible notes.
MicroStrategy, which is rebranding itself as a Bitcoin Treasury, purchased a record-breaking $5.4 billion worth of the cryptocurrency last month. An SEC filing shows that between November 18 and 24, the Tysons Corner, Virginia-based company bought 55,500 tokens with money from a $3 billion convertible note offering and common share sales.
MicroStrategy is the largest publicly listed corporation holding Bitcoin, with around $38 billion in the digital currency.
Furthermore, Microstrategy's co-founder Michael Saylor has delivered a Bitcoin adoption strategy to Microsoft's board of directors.
Presenting at Microsoft's December 2024 shareholder meeting, Saylor proposed a transformative shift in Microsoft's treasury approach that would allocate $200 billion in capital distributions into Bitcoin holdings.
Fournier explained to Jeong, "We are observing several key tailwinds that could drive Bitcoin’s price upward. Increasingly, both corporate and national treasuries are considering allocating a portion of their reserves to Bitcoin. For example, Bitcoin miners like Marathon Holdings and healthcare companies like Stemline Scientific have recently announced Bitcoin purchases."
"The leading role model for this strategy is Michael Saylor and MicroStrategy, which currently holds $38 billion worth of Bitcoin. This approach has propelled MicroStrategy’s stock price up 500% year-to-date, making it the best-performing stock this year. As a result, this strategy is gaining interest across various industries," he continued.
"Notably, Michael Saylor recently presented this strategy to Microsoft’s board, which is now deliberating adopting a similar treasury allocation."
ETFs
2024 kicked off with the approval of Bitcoin ETFs. As 2024 closes, interest in the product is still not dwindling. "Sustained record ETF inflows and strong retail demand are potential catalysts we are closely monitoring," Fournier explained on Money FM.
The success of Bitcoin ETFs has inspired asset managers to explore creating ETFs for other cryptocurrencies including Ethereum, Solana, XRP and others.
Trump
Donald Trump's election success has proven fruitful for the crypto industry. On Wednesday, Trump announced that he intends to nominate cryptocurrency advocate Paul Atkins to chair the Securities and Exchange Commission (SEC).
Describing Atkins as a "proven leader for common sense regulations,” Trump has backed the CEO of Patomak Partners as the frontrunner to replace Gary Gensler.
“[Atkins] believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors, & that provide capital to make our Economy the best in the World. He also recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before,” Trump wrote on Truth Social.
The crypto industry has welcomed the news. Paul Grewal, chief legal officer of Coinbase, congratulated Atkins in a post on X.
“We appreciate his commitment to balance in regulating U.S. securities markets and look forward to his fresh leadership at (the SEC),” Grewal wrote. “It’s sorely needed and cannot come a day too soon.”
Congratulations to Mr. Atkins. We appreciate his commitment to balance in regulating US securities markets and look forward to his fresh leadership at @SECGov. It's sorely needed and cannot come a day too soon. https://t.co/QRBC2MSPGe
— paulgrewal.eth (@iampaulgrewal) December 4, 2024
Fournier told Jeong, "If these forces don’t push Bitcoin’s price beyond $100,000 by year-end, the strongest tailwinds might emerge from potential policy shifts following Trump’s inauguration on January 20th."
Looking ahead, Fournier expects "very high volatility and an acceleration of the bull run in the coming weeks."
Elsewhere
Blockcast
In this episode, Takatoshi Shibayama sits down with Jason Choi, general partner at crypto prop shop Tangent, for a candid exploration of crypto markets. Choi discusses meme coin supercycles, navigating macroeconomic headwinds, and the evolution of project evaluation from speculative hype to real-world traction.
Previous episodes of Blockcast can be found on Podpage, with guests like Peter Hui (Moongate), Luca Prosperi (M^0), Charles Hoskinson (Cardano), Aneirin Flynn (Failsafe), and Yat Siu (Animoca Brands) on our most recent shows.
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