Historic Bitcoin Milestone Achieved
On December 5th, Bitcoin reached a monumental benchmark by surpassing **$100,000 per coin**, peaking at $103,400 with a 7.81% daily surge. This breakthrough marks:
- 140% year-to-date growth
- $2 trillion+ market capitalization
- Rapid 1-month ascent from $68,000 (November 4th to December 5th)
Cryptocurrency stocks showed parallel strength, with Ethereum trading at $3,839 during the same period.
Federal Reserve Chair Powell's Perspective
During the DealBook Summit (December 4th), Chair Jerome Powell contextualized Bitcoin's role:
"Bitcoin competes with gold, not the dollar. It's a virtual store of value with high volatility that limits its utility for payments."
Key takeaways:
- Bitcoin and gold share comparable investment profiles
- Dollar retains dominance for transactions and stable value storage
- Crypto volatility remains a barrier to mainstream adoption
Meitu's Strategic Crypto Divestment
Hong Kong-listed Meitu (01357.HK) capitalized on the market peak by liquidating its entire cryptocurrency holdings on December 4th, realizing:
| Asset | Quantity Sold | Proceeds |
|---|---|---|
| Ethereum | 31,000 | $100 million |
| Bitcoin | 940 | $80 million |
Total Profit: $79.63 million (~¥571 million)
Initial Investment: $100 million (March-April 2021)
The company announced:
- 80% of proceeds will fund special dividends (HK$0.109/share)
- Remaining 20% allocated to subscription-based imaging software development
Notable Institutional Activity
Boyaa Interactive (HK00434)
- Holds 2,641 BTC ($226M value) at $54K average cost
- Maintains 15,400 ETH position
Spot Bitcoin ETF Growth
- January 2024: $28B AUM across 11 U.S. ETFs
- December 2024: $82B AUM (3x expansion)
- BlackRock's IBIT ETF set single-day inflow record ($1.1B on December 3rd)
Global Regulatory Developments
United States
- President-elect Trump nominates pro-crypto attorney Paul Atkins as SEC Chair
- Expected focus: Reduced financial bureaucracy and balanced enforcement
Russia
President Putin's crypto policy shift:
- Recognizes cryptocurrencies as legal property (effective January 2025)
- Implements comprehensive tax framework for mining/trading
- Proposes BRICS alternative payment system amid SWIFT restrictions
"Who can ban Bitcoin? No one." — Vladimir Putin at Moscow Investment Forum
Market Outlook and Risks
Price Predictions
- 2024 Year-End: $125K (Consensus estimate)
- 2025 Projection: $200K (Bull case scenario)
- 2026 Forecast: $225K (Benchmark Company analysis)
Expert Risk Analysis
- Yu Jianing (Blockchain Committee Co-Chair):
"Leverage trading amplifies volatility risks—market reversals can trigger cascading liquidations." - Zhao Wei (OKX Senior Researcher):
"Policy changes and investor sentiment shifts could prompt sharp corrections despite current momentum."
Bitcoin Investment FAQs
Q: Why did Bitcoin surge past $100K?
A: Institutional ETF inflows, geopolitical uncertainty, and supply halving effects combined to drive demand.
Q: Is now a good time to invest in Bitcoin?
A: While long-term prospects appear strong, short-term volatility requires risk tolerance. Dollar-cost averaging mitigates timing risks.
Q: How does Russia's crypto legalization impact markets?
A: Legitimization by major economies increases adoption potential, though sanctions-related usage may draw regulatory scrutiny elsewhere.
Q: What's Bitcoin's realistic 2025 price target?
A: Analyst projections range from $150K–$200K depending on ETF inflows and macroeconomic conditions.
Q: Are altcoins like Ethereum worth holding?
A: ETH remains the leading smart contract platform, but diversifying across top-5 cryptocurrencies balances risk/reward profiles.
Q: How can I safely store Bitcoin?
👉 Cold wallets provide maximum security for long-term holders
Disclaimer: This content represents market analysis only, not financial advice. Cryptocurrency investments carry substantial risk—conduct independent research before trading.
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