Bitcoin has once again captured global attention—this time by shattering the $100,000 barrier.
On December 5, Bitcoin surged past $100,000, climbing over 5% in a single day and setting a new all-time high. Year-to-date, the leading cryptocurrency has gained nearly 140%. The rally hasn’t been limited to Bitcoin alone—Ethereum, Dogecoin, and other digital assets have also experienced broad market gains, fueled by renewed investor enthusiasm.
This latest crypto wave has created overnight millionaires while leaving others wondering if they’ve missed their chance. But as prices climb higher, a critical question emerges: Has Bitcoin truly reached its peak?
The Surge Beyond $100,000: What’s Driving the Rally?
Since November, Bitcoin and the broader crypto market have been on a tear. On December 5, Bitcoin officially crossed the $100,000 threshold, pushing its total market capitalization above $2 trillion for the first time in history.
Several key factors have contributed to this explosive growth.
Trump’s Pro-Crypto Stance Sparks Market Optimism
One major catalyst has been former U.S. President Donald Trump’s return to the political spotlight. During his campaign, Trump pledged to make America the “global capital of cryptocurrency” and advocated for the U.S. government to build a national Bitcoin reserve.
The momentum intensified when Trump announced the nomination of Paul Atkins—a former SEC commissioner known for his pro-crypto views—as the next chair of the Securities and Exchange Commission. This move signaled a potential shift in U.S. regulatory policy, boosting investor confidence in digital assets.
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Market Sentiment and Institutional Adoption
Beyond politics, market psychology plays a crucial role. According to Jeffrey Ding, Chief Analyst at HashKey Group, recent price gains are largely driven by improved market sentiment. After a mid-year correction starting in April, investors are now more optimistic, releasing pent-up demand.
Additionally, more publicly traded companies are adopting Bitcoin as part of their corporate treasury strategy. Firms are increasingly viewing Bitcoin as a long-term store of value, similar to gold, leading to increased institutional accumulation.
Fed Policy Fuels Risk Appetite
The Federal Reserve’s monetary policy has also provided tailwinds. In November, the Fed cut interest rates by 25 basis points, increasing liquidity in financial markets. Lower rates typically encourage investors to seek higher returns in riskier assets like cryptocurrencies.
Market expectations suggest another rate cut in December—CME Group’s FedWatch tool estimates a 62.4% probability of a 25-basis-point reduction. This favorable macro environment continues to support Bitcoin’s upward trajectory.
Despite Gains, Experts Warn Against Blindly Chasing Prices
While the rally is impressive, financial analysts urge caution.
Dan Coatsworth, Investment Analyst at UK-based AJBell, warned that while breaking $100,000 is psychologically significant, investors should avoid emotional decision-making. “Bitcoin’s surge can easily make people lose perspective,” he said. “It has risen fast before—and crashed just as quickly. This isn’t an investment for the faint-hearted.”
Bryan Armour, Head of Passive Strategies Research at Morningstar, echoed this sentiment. He noted that cryptocurrencies remain highly volatile and cautioned that political promises don’t always translate into action. “As long as the narrative stays positive, Bitcoin has room to grow,” Armour said. “But if Trump fails to deliver on his commitments, prices could reverse sharply.”
Even bullish forecasts come with caveats. Mark Palmer, Senior Analyst at The Benchmark Company, predicted Bitcoin could reach $225,000 by the end of 2026—but such projections assume continued regulatory clarity and sustained demand.
Who’s Winning in This Bull Run?
The current surge has turned early adopters and corporate holders into big winners—none more notably than Meitu.
Meitu Cashes In: $570 Million Profit Exceeds Annual Net Income
On December 4, Meitu announced it had sold approximately 31,000 ETH and 940 BTC, generating around $180 million in cash and realizing a profit of about $79.6 million (roughly RMB 570 million). This profit surpasses Meitu’s full-year adjusted net profit of RMB 370 million in 2023.
While some critics argue Meitu sold too early given Bitcoin’s continued rise, the company plans to return about 80% of the net proceeds as a special dividend to shareholders. The remainder will fund expansion of its subscription-based image and design software business.
Morgan Stanley reaffirmed its “overweight” rating on Meitu, citing strong shareholder returns and strategic focus, with a target price of HK$4.5.
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Other Corporate Holders: From Holding to Strategic Swaps
Not all companies are exiting. Boying Interactive, another Hong Kong-listed firm, took a different approach.
As of November 12, Boying held 2,641 BTC (average cost: ~$54,000 each) and 15,400 ETH (average cost: ~$2,756 each). Instead of selling, it executed a strategic swap between November 19 and 28—exchanging 14,200 ETH for approximately 515 BTC.
After the transaction, Boying’s total Bitcoin holdings reached around 3,183 BTC, with an average cost of about $57,700 per coin. At current prices, the unrealized gains are substantial.
By December 5, Boying Interactive’s stock had surged 22.49%, closing at HK$6.10.
Other firms like Bluehole Interactive and Guofu Innovation also maintain Bitcoin positions, signaling growing corporate confidence in digital assets as long-term value stores.
Is Bitcoin the New Digital Gold?
As Bitcoin gains mainstream traction, comparisons to gold are becoming more common.
Federal Reserve Chair Jerome Powell recently likened Bitcoin to gold—“a virtual version”—noting that neither functions as everyday currency but rather as speculative stores of value due to their volatility. “Bitcoin isn’t competing with the dollar,” Powell said. “It’s competing with gold.”
ARK Invest CEO Cathie Wood took it further. In a social media post, she celebrated Bitcoin’s milestone and highlighted Paul Atkins’ nomination as a turning point for digital asset regulation. “Bitcoin is still in its early stages,” she wrote. “Gold’s market cap is around $15 trillion—Bitcoin is only at $2 trillion.”
With vast room for growth and increasing recognition as a macro hedge against inflation and monetary expansion, many analysts believe Bitcoin could follow gold’s path toward broader institutional adoption.
Risks Remain: Volatility, Energy Use, and Security Concerns
Despite growing legitimacy, crypto investing remains risky.
Coinglass data shows that within just 24 hours of Bitcoin’s surge past $100K, 197,000 traders were liquidated, underscoring the dangers of leverage and emotional trading during extreme volatility.
Environmental concerns persist due to Bitcoin’s energy-intensive proof-of-work mechanism. Additionally, regulatory scrutiny over illicit use and market manipulation continues globally.
Investors must balance opportunity with risk—and avoid getting swept up in hype.
Frequently Asked Questions (FAQ)
Q: Did Bitcoin really break $100,000?
A: Yes—on December 5, Bitcoin surpassed $100,000 for the first time in history amid strong market momentum and favorable macro conditions.
Q: Why is Bitcoin rising so fast?
A: Key drivers include pro-crypto U.S. political developments (e.g., Trump’s SEC nomination), anticipated Fed rate cuts boosting risk appetite, growing institutional adoption, and improved market sentiment after a mid-year correction.
Q: Is Bitcoin safer than stocks or bonds?
A: No—Bitcoin is significantly more volatile than traditional assets. While it may offer high returns, it comes with higher risk and should only form part of a diversified portfolio.
Q: Can companies profit from holding Bitcoin?
A: Yes—Meitu earned over $79 million from selling crypto holdings, exceeding its previous year’s net profit. However, timing matters; holding too long or selling too early can impact returns.
Q: Should I buy Bitcoin now?
A: Only after thorough research and risk assessment. Consider your financial goals, risk tolerance, and investment horizon. Dollar-cost averaging may help reduce exposure to short-term volatility.
Q: Is Bitcoin replacing gold?
A: Not yet—but many see it as a digital alternative. Both are seen as non-sovereign stores of value. With a much smaller market cap than gold (~$2T vs ~$15T), Bitcoin still has growth potential but lacks gold’s stability and centuries-long track record.
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