Bitcoin reaches USD $100,000, joins top global assets list

Binance Australia has released its latest Monthly Markets Insights report, highlighting a significant uptrend for digital currencies in December.

The report details the cryptocurrency market's performance, noting a 39.9% increase in total market capitalisation during November to reach a record USD $3.47 trillion.

This surge has been driven by strong investor interest and the prospect of a potentially crypto-friendly administration in the United States.

Bitcoin itself made headlines by breaking past the USD $100,000 mark, achieving a market capitalisation exceeding USD $2 trillion. This milestone positions Bitcoin among the top seven assets globally, alongside gold and major technology companies such as NVIDIA, Apple, Microsoft, Alphabet (Google), and Amazon.

Australian investors are showing a keen interest in this development. A recent survey conducted during the Australian Crypto Con event in Sydney, which attracted over 500 attendees, found that over 90% plan to purchase cryptocurrency within the next six months. Of these, two-thirds are interested in buying Bitcoin, with 53% expressing a bullish outlook and an additional 25% being ultra bullish about Bitcoin reaching new all-time highs by 2025.

James Quinn-Kumar, Director of Community Engagement for Binance Australia, stated, "What we are seeing is the return of the retail crypto investor.

Close to 9000 people at Aus Crypto Con, young and old, new and experienced investors, is testament to the demand we are seeing from retail investors."

This renewed interest is reflected in the surge in downloads of the Binance app in Australia, which increased from 13,250 in October to 37,083 in November, marking a 280% month-on-month growth.

The journey towards Bitcoin hitting USD $100,000 has been fraught with challenges. After reaching USD $69,000 in 2021, Bitcoin encountered significant obstacles, including bearish markets, macroeconomic uncertainties, and regulatory challenges.

The narrative changed as central banks printed trillions in response to economic crises, leading to inflation and stimulating interest in Bitcoin as a "digital gold" given its capped supply of 21 million coins. This pivot, combined with potential favourable policy shifts under a new US administration, further propelled Bitcoin's increasing acceptance and price.

"Bitcoin surpassing USD $100,000 marks a momentous shift in the global financial landscape," noted Quinn-Kumar. "In just under sixteen years Bitcoin has become one of the top assets in the world, having transitioned from a niche asset to a mainstream financial instrument. This is quite a miraculous feat."

Furthermore, November saw record-breaking inflows into Bitcoin and Ether spot exchange-traded funds (ETFs). The US-based spot Bitcoin ETFs attracted over USD $6.5 billion in net inflows during the month, including a peak of USD $3.3 billion between November 18-22. Ether ETFs recorded USD $1.1 billion in net inflows in November, with the daily peak reaching approximately USD $330 million on November 29.

To date, Bitcoin ETFs have amassed over USD $30 billion in net inflows since their inception in January, while Ether ETFs, launched in July, have secured USD $577 million in net inflows. The current total volume for Bitcoin ETFs has surpassed USD $550 billion, with assets under management (AUM) exceeding USD $100 billion. Ether ETFs have a cumulative volume nearing USD $28 billion, with a total AUM of USD $9.2 billion.

BlackRock's iShares Bitcoin Trust leads the market, holding approximately 40% of assets, followed by Fidelity's product with USD $22 billion in assets from USD $11 billion of net inflows. In the Ether ETF space, Grayscale holds the most substantial assets at USD $5.4 billion, with BlackRock following at USD $2.3 billion.