BitcoinThe long-awaited rise to over $100,000 coincides with the culmination of a year in which the leading cryptocurrency was embraced by major Wall Street institutions and became a hot topic in the US presidential election.

For years, Bitcoin bulls have predicted a rise to $100,000 to express their optimism about cryptocurrencies. But many on Wall Street rejected it. The digital coin crossed the six-figure threshold on Wednesday evening and is now up more than 140% in 2024.

The start of 2024 is a fitting setting for the latest leg of Bitcoin’s journey since the launch of the first Bitcoin ETFs on January 11th. The funds have attracted tens of billions of dollars in inflows since their debut, led by the iShares Bitcoin Trust (IBIT). ), which now has assets worth $50 billion.

While there is still some notable reluctance among investment firms, the launch and rapid growth of these funds is the most visible example of Bitcoin’s acceptance by the traditional financial system. After years of being seen as a speculative asset for retail traders, institutional buying has taken Bitcoin to new levels.

“Institutions have purchased a net 683,000 Bitcoins year-to-date through US spot ETFs and large purchases of MicroStrategy, a software company and Bitcoin proxy. A significant 245,000 of these inflows have occurred in the weeks since the US election…This has contributed to the rally.” “BTC breaks $100,000,” said Geoff Kendrick, global head of digital asset research at Standard Chartered Bank, on Thursday in a note to customers.

Bitcoin has also found its way into the political institutions of the United States. The crypto lobby has spent heavily in the 2024 election cycle, and President-elect Donald Trump appears to be a staunch fan of Bitcoin and the industry.

Trump attended the Bitcoin conference in Nashville as part of his election campaign. His choice to head the Securities and Exchange Commission, Paul Atkins, is seen as friendly to the crypto industry – and represents a dramatic change from current SEC Chairman Gary Gensler.

“This current government is very hostile to cryptocurrencies. Like the entire industry, we have become a victim of this, so to speak. That’s why it’s very important for the industry to have people who understand and embrace it.” ” Robinhood CEO Vlad Tenev said this on Thursday on the show “Squawk Box”. Robinhood offers crypto trading on its brokerage platform.

Bitcoin price is up 49% since November 4th, the day before the presidential election.

Bitcoin may even have received a little push from Federal Reserve Chairman Jerome Powell to break above $100,000. Powell said on Wednesday that Bitcoin is a competitor to gold, not the US dollar. That’s hardly a convincing endorsement of cryptocurrency, but the world’s top central banker’s comparison of Bitcoin to one of the world’s oldest assets could be seen as a sign of legitimacy.