Bitcoin’s jump past $100K also allowed its dominance to increase to 57%. Additionally, the surge was accompanied by a sharp increase in social sentiment and the liquidation of $132 million in short positions. Meanwhile, Mt. Gox transferred 24,000 BTC shortly after the milestone, which raised questions about its possible market impact. North American miner Hut 8 is getting ready to take advantage of Bitcoin’s access as it announced plans to expand its Bitcoin reserve through a $500 million stock repurchase program.
Bitcoin Breaks $100K While Altcoin Gains Fade Away
Bitcoin (BTC) reclaimed its position as the dominant force in the crypto market after hitting a massive milestone by surpassing $100,000 for the first time ever on Dec. 5. Bitcoin’s dominance, which is a measure of its share in the total crypto market value, rebounded sharply to 57% after falling to a recent low of 54.7% on Dec. 4. The surge to a new high of $104,000 was a dramatic reversal for Bitcoin, which has been stuck in consolidation around the $95,000 level while altcoins stole the spotlight.
BTC’s price action over the past 24 hours (Source: CoinMarketCap)
Leading altcoins like Binance Coin (BNB), Tron (TRX), and XRP recently reached all-time highs. This led to a dip in Bitcoin’s dominance, but the trend reversed after Bitcoin surged past the six-figure threshold. Analysts like Income Sharks humorously suggested that Bitcoin’s rise was a reminder of its ”king” status in the middle of the altcoin frenzy.
The market’s excitement was mirrored by the Bitcoin Fear & Greed Index, which climbed to a high of 94 on Nov. 22, when Bitcoin was nearing $99,000, before settling at an “extreme greed” level of 84 after the latest rally. Social sentiment also reflected the euphoria in the market, and Google Trends reported a sharp increase in Bitcoin-related searches on Dec. 5.
Bitcoin’s quick ascent also led to large market liquidations, with over $132 million in short positions wiped out in just four hours, according to CoinGlass.
Coinbase CEO Brian Armstrong was just as excited about BTC’s achievement, and shared his thoughts about Bitcoin’s exceptional performance. Armstrong pointed out that $100 invested in Bitcoin at the time of Coinbase’s founding would now be worth close to $1.5 million.
The crypto industry is already calling Dec. 5 “$100K Day,” and many people are celebrating the cryptocurrency’s historic achievement.
Mt. Gox Transfers 24K Bitcoin After $100K Break
The long-defunct crypto exchange Mt. Gox moved more than 24,000 Bitcoin, which is valued at approximately $2.5 billion, to an unknown address very shortly after Bitcoin surpassed the $100,000 milestone. Data from Arkham Intelligence revealed that the exchange transferred 24,051 Bitcoin to an address with no prior activity at 2:45 am UTC. This was its first big transaction since Nov. 12.
The timing of the move coincided with Bitcoin’s price surge, and the transaction was executed just 12 minutes after it crossed $100,000 and less than 30 minutes before it peaked at $104,000 on Coinbase.
The reason for the transfer is still unclear, though similar movements in the past have been linked to preparations for creditor payouts. Mt. Gox declared bankruptcy in 2014, and has been working to resolve claims from creditors who lost access to their Bitcoin more than a decade ago. While these large-scale transfers raise some concerns about potential sell-offs that could impact Bitcoin’s price, some analysts believe the market has already accounted for the sell-side pressure as these creditor repayments have been anticipated for years.
Many creditors also revealed that they are reluctant to sell their Bitcoin despite finally regaining access. A July poll on Reddit suggested that most recipients were holding onto their funds, even after the exchange started processing initial payouts earlier this year. The Mt. Gox trustee also recently extended the repayment deadline to Oct. 31, 2025.
Mt.Gox Bitcoin holdings (Source: Arkham Intelligence)
After the latest transfer, Mt. Gox still holds a very large reserve of 39,878 Bitcoin, valued at around $4.1 billion. The latest move reignited discussions about its impact on the market, and some see it as a bearish signal.
Hut 8 Plans Bitcoin Reserve
Many companies are running to get their piece of the Bitcoin pie after its recent success. Hut 8, a North American Bitcoin mining company, launched a $500 million stock repurchase program to fund growth initiatives, including buying Bitcoin as a strategic reserve.
The at-the-market (ATM) offering program will allow the company to sell up to $500 million in common stock. The proceeds will be directed toward developing power and digital infrastructure, expanding its Bitcoin reserve, and addressing corporate needs like capital expenditures and debt repayment.
CEO Asher Genoot shared details about just how important the ATM and stock repurchase programs are in navigating volatile markets. They also play a major role in strengthening the company’s treasury management strategy. Under the new capital management plan, Hut 8 may repurchase up to 4.68 million shares of common stock, representing 5% of the total outstanding shares, over the next year.
Hut 8’s stock (HUT) rebounded strongly after the announcement was made on Dec. 4, and surged 326% to $27.03 since its January dip to $6.33 that was caused by a short-seller report that unsettled investors. The firm recently filed a motion to dismiss a shareholder class-action lawsuit, and called it opportunistic
Hut 8 became the latest of many companies adopting Bitcoin as a strategic reserve. Other firms, including AI education tech company Genius Group, biopharmaceutical firm Hoth Therapeutics, video platform Rumble, Canadian wellness company Jiva Technologies, and Semler Scientific all announced similar strategies recently.
Paul Atkins Nominated as SEC Chair by Trump
Bitcoin’s price could be boosted even more after President-elect Donald Trump officially nominated Paul Atkins, a pro-crypto advocate, to succeed Gary Gensler as the head of the United States Securities and Exchange Commission (SEC). In an announcement on Dec. 4, Trump praised Atkins’ experience as a former SEC commissioner and his work as CEO of Patomak Global Partners.
Trump also mentioned Atkins’ role as Co-Chairman of the Digital Chamber’s Token Alliance since 2017, where he focused on the digital assets industry. Atkins is known for his commitment to transparency and investor protection during his tenure at the SEC from 2002 to 2008, and was a key part of Trump’s campaign promise to appoint a crypto-friendly SEC leader.
Atkins’ nomination happened after the resignation of Gary Gensler, which was announced on Nov. 21 after widespread criticism from the crypto industry. Gensler’s tenure was riddled with aggressive regulatory actions, and the SEC even filed 104 lawsuits against crypto firms between 2021 and 2023. These legal battles reportedly cost the industry $426 million in legal fees. The Blockchain Association criticized the SEC under Gensler for not providing clear regulations, and called for an end to what they described as “law-fare” against the crypto sector.
Gensler’s departure already sparked optimism in the crypto market, and many analysts predicted an extended altcoin rally heading into 2025. The resignation also led to a surge in filings for Solana exchange-traded funds (ETFs), and firms like Bitwise, VanEck, and 21Shares quickly submitted applications after the announcement. Pantera’s chief legal officer, Katrina Paglia, also suggested that many of the SEC’s lawsuits against blockchain projects and crypto firms could be quietly dropped under new leadership.
Overall, the crypto industry sees Atkins’ nomination as a pivotal step toward clearer and more favorable regulation.
This article was originally Posted on Coinpaper.com
