Bitcoin Surges Past $100,000, Setting a New All-Time High: Can the Rally Continue?On December 5th, Bitcoin's price continued its upward trajectory, breaking the $100,000 barrier and reaching a new all-time high of $103,287.2 per coin at press time
Bitcoin Surges Past $100,000, Setting a New All-Time High: Can the Rally Continue?
On December 5th, Bitcoin's price continued its upward trajectory, breaking the $100,000 barrier and reaching a new all-time high of $103,287.2 per coin at press time. This remarkable surge, a jump from $68,000 to $100,000 in just one month, represents a year-to-date increase of nearly 140%. This Bitcoin rally also significantly boosted the prices of other cryptocurrencies, including Ethereum and Dogecoin.
However, this upward trend comes with considerable risk. Data from Coinglass reveals that over 210,000 traders were liquidated in the past 24 hours, resulting in total losses of $659 million (approximately 4.8 billion RMB), with $330 million and $250 million in losses from long and short positions, respectively. The largest single liquidation occurred on the Bybit-BTC platform, amounting to $8.91 million.
This Bitcoin price explosion also impacted related stock markets. On the same day, Hong Kong-listed Bitcoin-related stocks saw widespread gains. BoYa Interactive (00434.HK) rose by 5.42% to HK$5.25; Meitu (001357.HK) increased by 5.24% to HK$3.01; while BlueFocus Interactive (08267.HK) and New Fire Technology Holdings (01611.HK) climbed by 3.08% and 3.04%, closing at HK$0.67 and HK$2.37, respectively. Meanwhile, cryptocurrency-related ETFs also experienced collective gains, with FA Southern Bitcoin and Huaxia Bitcoin ETF both rising over 7%.
Several Hong Kong-listed companies have already invested in the cryptocurrency market and profited from it. For instance, BoYa Interactive announced it holds 2,641 Bitcoins at an average cost of approximately $54,027, and 15,445 Ethereums at an average cost of approximately $2,756. However, not all companies opted for long-term holding. Meitu announced on December 4th that it had sold all its crypto holdingsapproximately 31,000 Ethereum and 940 Bitcoinresulting in a profit of around $79.63 million (approximately 5.71 billion RMB). The company had been gradually selling these assets since November 2024.
The meteoric rise in Bitcoin's price sparked concerns about a potential market peak. Yu Jianing, co-chairman of the China Communications Industry Association Blockchain Specialist Committee and honorary chairman of the Hong Kong Blockchain Association, believes there's a high probability of a correction after Bitcoin's breach of $100,000, citing the rapid price increase and the historical precedent of Bitcoin experiencing 20% daily drops. He points out that such rapid price increases are not beneficial to the asset itself.
Yu Jianing attributes this Bitcoin price surge to multiple factors. Trump's pro-Bitcoin statements during his campaign, coupled with the SEC's approval of Bitcoin ETFs from firms like BlackRock and Fidelity, injected substantial institutional capital into the market. Furthermore, speculation about the US potentially including Bitcoin in its national reserves has attracted significant attention from various countries, sovereign wealth funds, and central banks.
He further notes that this Bitcoin bull-bear cycle differs from previous ones. Traditional bull markets usually follow halving events, but this rally began in September 2023, fueled by anticipation of potential spot Bitcoin ETF approvals. From September 2023 to March 2024, Bitcoin reached its peak, followed by a 6-7 month period of decline, only to rebound in August with the emergence of the so-called "Trump trade."
Federal Reserve Chairman Jerome Powell, during a December 4th appearance at the New York Times' DealBook Summit, also discussed Bitcoin. He characterized Bitcoin as a competitor to gold, not the US dollar, referring to it as "virtual gold," while emphasizing its excessive volatility, making it unsuitable as an ideal payment or store-of-value instrument.
However, Bitcoin's wild price swings present significant risks. The Economic Daily points out that Bitcoin has experienced frequent price fluctuations since its inception, with dramatic rises and falls being the norm, leading to various market risks. Yu Jianing further analyzed these risks, including evolving cryptocurrency regulations globally, changes in the global macroeconomic environment (interest rates, inflation, international trade relations), and the threat of hacking and security breaches targeting cryptocurrency exchanges and wallets.
In conclusion, Bitcoin surpassing $100,000 and achieving a new all-time high doesn't signify the elimination of risk. The rapid ascent masks significant volatility, demanding caution from investors, who should carefully assess risks and avoid blindly following trends. Government regulations, macroeconomic conditions, and technological security will continue to shape Bitcoin's future trajectory. Currently, market sentiment regarding future price movements is diverse, urging investors to closely monitor market developments and make rational decisions.
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