The past week has been groundbreaking for the cryptocurrency market, with Bitcoin smashing past the $100,000 barrier and major regulatory developments shaping the landscape. Here’s a closer look at the highlights.
Bitcoin Surpasses $100,000: A New Milestone
Bitcoin’s price hit an all-time high last week, breaking through $100,000 and peaking at $104,000. This rally didn’t come out of nowhere—it’s the culmination of weeks of steady growth, fueled by shifting sentiment around the asset and major policy expectations in the U.S.
The rally got an extra boost from news surrounding the Trump administration. President-elect Donald Trump’s nomination of Paul Atkins, a well-known advocate for crypto regulation clarity, to lead the SEC added confidence to the market. On top of that, Federal Reserve Chair Jerome Powell likened Bitcoin to gold in a recent statement. While he still pointed out its speculative nature, many saw his comments as a nod to Bitcoin’s growing legitimacy.
Opinions on where Bitcoin goes from here are divided. Optimistic analysts suggest that $110,000 and even $200,000 could be within reach, driven by growing institutional demand. Others are more cautious, noting Bitcoin’s history of sharp pullbacks after rapid rises. The question now is whether Bitcoin can sustain this momentum or if we’ll see another major correction.
Read our Bitcoin price forecast.
U.S. Treasury Labels Bitcoin as ‘Digital Gold’
As mentioned above, the U.S. Treasury officially referred to Bitcoin as “digital gold” in a report last week. This term, long used by enthusiasts, now carries more weight as a government acknowledgment of Bitcoin’s role as a store of value.
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For many investors, this reinforces Bitcoin’s reputation as a hedge against economic uncertainty. However, skeptics argue that Bitcoin’s price swings make it far less stable than gold. While the label is a big win for crypto advocates, it remains to be seen whether Bitcoin can truly replace gold as the go-to safe haven for wealth preservation.
SEC Rejects Solana ETF Filings
While Bitcoin celebrated new highs, other parts of the crypto market faced challenges. The SEC rejected multiple proposals for Solana (SOL) exchange-traded funds (ETFs), citing unresolved questions about whether Solana should be classified as a security.
Outgoing SEC Chair Gary Gensler’s decision has been described by some as a “parting gift” to the crypto industry, a final reminder of the regulatory uncertainty that continues to hang over many blockchain platforms. For Solana, which has been positioning itself as a serious competitor to Ethereum, the rejection highlights just how far newer projects still have to go in gaining regulatory acceptance.
Without clear guidelines from regulators, projects like Solana face an uphill battle to win the trust of both investors and institutions.
Following this news, SOL token has faced temporary price pullbacks but managed to avoid major declines, with its price movement not breaking away from the general market sentiment.
Bitcoin ETFs Attract Significant Inflows
While Solana struggled, Bitcoin ETFs continued to thrive, with an impressive $2.73 billion flowing into these funds over the past week. This surge likely highlights growing interest from institutional investors who see Bitcoin as a long-term play.
ETFs make it easier for traditional investors to get exposure to Bitcoin without having to deal with wallets or exchanges. Analysts suggest this trend could drive Bitcoin’s price even higher, with some predicting it could reach $200,000 by 2025.
The rising popularity of ETFs also reflects a broader acceptance of Bitcoin as a mainstream investment asset, bridging the gap between crypto and traditional finance.
Hawk Tuah Memecoin Faces Controversy
In stark contrast to Bitcoin’s steady ascent, the Hawk Tuah memecoin ($HAWK) reminded everyone of the darker side of crypto. Created by influencer Haliey Welch, the token exploded onto the scene with its market cap briefly hitting $490 million. But just as quickly, it all came crashing down—the coin lost 88% of its value within minutes.
The fallout has been messy. Angry investors have accused Welch and other insiders of orchestrating a pump-and-dump scheme, with some alleging that early backers sold off their holdings at the peak, leaving retail investors to suffer the losses. Welch has denied any wrongdoing but hasn’t provided clear answers about how the token launch was handled.
This incident is a sobering reminder of how risky memecoins can be. While these tokens often grab attention with viral marketing and the promise of quick profits, they’re just as likely to leave investors burned. For regulators, it’s another example of why more oversight is needed in the space. For investors, it’s a cautionary tale about the importance of due diligence and not jumping into speculative assets without understanding the risks.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
