Bitcoin (BTC), the leading cryptocurrency by market capitalization, has reached a historic milestone, breaking past the $106,000 mark for the first time. The surge comes amid a wave of institutional adoption, reinforcing BTC as a store of value in the financial sector.
BTC has experienced a significant rise in the past month. Despite its price swing, the crypto asset surpassed its $100,000 price mark for the first time on December 4, 2024, in the early hours of the day. However, at the time of writing, BTC was trading at above $103,900, with a market cap of more than $2 trillion.
Bitcoin On The Rise
Over the past year, the crypto market has witnessed a significant influx of institutional investment. Companies like BlackRock, Fidelity, and ARK Invest have doubled down on their crypto strategies, increasing their BTC portfolios.
On December 13, 2024, the world’s largest asset management firm, BlackRock, went BTC shopping. The asset manager acquired 4295 BTC worth $429.5 million. The current purchase further cements BlackRock’s growing footprint in the crypto asset market.
Following the massive purchase, asset management giant Fidelity Investment went a step further by adding more bitcoin to its holdings. The firm added over $196 million in BTC to its investment vehicle. Over the week, the asset manager purchased approximately 5,200 BTC, worth more than $524.6 million. Before the latest acquisition, Fidelity held 199,237 BTC, worth roughly $19.3 billion.
A Bitcoin Reserve
The BTC surge comes as the United States plans a strategic BTC reserve under President Donald Trump’s administration. Just recently, Cynthia Lummis, an American attorney and politician serving as the junior US senator from Wyoming, met with Scott Bessent, an American investor, philanthropist, and hedge fund billionaire, to discuss implementing a national BTC reserve strategy.
Senator Lummis also proposed that the US government accumulate more bitcoin to establish a strategic BTC reserve fund. The politician further stated that the US could become the first developed nation to develop a strategic reserve by embracing BTC, securing a brighter future for generations of Americans.
Following the talks on a national BTC reserve, Trump confirmed the BTC reserve on December 14, 2024. The reserve aims to stabilize the financial market during a crisis.
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