Bitcoin Sets New ATH Above $100k as XRP Crashes to $2.3

The price of Bitcoin reached a new high today, December 5, after breaking $100k for the first time in history. The flagship cryptocurrency established its all-time high at $103.6k before declining slightly to its current price of $101,000. This trajectory comes less than a month after hitting $90k according to data from Coingecko.

Bitcoin’s Eventful Year

Bitcoin had a very eventful year in 2024, marked by several key events that contributed to its current momentum. In January, the SEC finally approved a Bitcoin exchange-traded fund (BTC ETF), opening the coin to institutional investors.

According to data from Soso Value, Bitcoin ETFs have recorded over $31 billion in net inflow in the United States since then.

Moving on, in April, the fourth Bitcoin halving event happened. The halving which started on April 19, slashed Bitcoin’s mining reward from 6.25 BTC to 3.125 BTC.

Bitcoin halving reduces the number of BTC that enter circulation since the amount generated is reduced. This process creates scarcity which in turn increases demand and potentially triggers price increases according to basic economic principles.

In September, the Federal Open Market Committee (FOMC) agreed to cut interest rates by 50 basis points for the first time in four years.

This decision was upheld as a result of progress on the Fed’s dual mandate. Following the decision, Bitcoin’s price reacted quickly, rocketing to $63,000 for the first time since 2022.

The United States election, held on November 5, produced a pro-crypto president, Donald Trump, as the winner. Trump went full support for Bitcoin and cryptocurrencies during his campaign, and got endorsement and donations from major industry players.

The outcome of the election ignited the rally that sent Bitcoin to $90k in early November, breaching its previous all-time high. Ultimately, Bitcoin’s rise to $100k was triggered by Trump’s choice of Paul Atkins, a pro-crypto figure, to lead the SEC.

The combination of all these factors have positioned Bitcoin as a $2 trillion asset today. Meanehile, Bitcoin has surged by an impressive 145% since Januray this year, from its trading price of $44,000.

A the time of writing, the flagship cryptocurrency surged by 5.48% to trade at $101,951.

XRP Crashes to $2.3

XRP has positioned as one of the most trending cryptocurrencies in the last month. The Ripple-backed coin skyrocketed by 400% between November and December, raising its price from 0.5 cents to $2.9.

However, the momentum seem to be fading as the coin has plummeted by 10.2% in the last 24 hours to trade at $2.35. Panic has rocked the XRP market as short-term investors are begining to sell off their holdings to bag already accumulated gains.

The initial momentum was triggered by several factors including the imminent replacement of SEC current chairman, Gary Gensler, with Paul Atkins, and the anticipation of favorable regulatory policies in 2025.