Bitcoin Tops $98,000, MSTR Reports $16 Billion Profit

The exhilarating rise of Bitcoin continues to capture global attention. On November 21, the price of Bitcoin surged past several significant thresholds, ultimately reaching an astonishing $98,300 per coin, marking a new all-time high for the cryptocurrency. To put this in perspective, Bitcoin opened the month at approximately $71,000, meaning that it had seen an increase of over 38% within just a few weeks. This also represents a staggering 139% rise compared to its price of under $41,000 at the start of the year.

Since it first entered the market in 2008 and began trading in 2010, Bitcoin has been characterized by extreme volatility. Many investors have adapted to this unpredictable nature, recognizing significant price movements as normal occurrences. However, the current price levels have left many astonished. Even during the unprecedented bull market of 2017, where Bitcoin saw an increase of nearly 20 times, the year ended with a price of only $19,000—far less than today’s figures.

When examining the broader landscape of global assets, Bitcoin's ascent has been remarkable. As reported by Companies Market Cap, a resource tracking major asset valuations, Bitcoin held the seventh largest market cap among the world’s leading assets by November 21, valued at approximately $1.92 trillion. In comparison, gold maintained its position at the top with a valuation of $17.69 trillion, and Bitcoin has now surpassed both silver and Saudi Aramco, a leading oil company, in market capitalization.

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Bitcoin's meteoric rise has not just benefited individual investors; it has also energized the stock prices of companies heavily invested in cryptocurrencies. For instance, MicroStrategy, a publicly traded company primarily known for its software solutions, has amassed a substantial Bitcoin reserve valued in the billions. As of November 20, shares of MicroStrategy rose by over 10%, reaching $473.83 per share, a remarkable increase of 115.67% in just one month.

In Hong Kong, several companies listed on the stock exchange have followed suit, including Booyah Interactive, Meitu, and others, which have seen their stock prices increase in correlation with Bitcoin’s growth. For instance, Booyah Interactive saw its share price surge over 671% year-to-date as Bitcoin continues to climb.

This ongoing rally in Bitcoin began in September, showcasing a sharp upward trend from an August price of just under $60,000. By the end of September, Bitcoin had risen to approximately $65,600, reflecting a month-on-month gain of about $7,200 per coin. October maintained this trend, with Bitcoin ultimately surpassing the $70,000 mark.

On November 10, Bitcoin achieved another significant milestone by crossing the $80,000 threshold, at one point enjoying a daily gain of 6.1%. Subsequent days continued to see new highs as Bitcoin surpassed $90,000 within days, rising dramatically from just over $78,000 earlier the same week. From November 6 to 13, Bitcoin's price jumped by approximately $17,000—an increase of over 22% in just one week.

A recent catalyst for this bullish trend has been the launch of a Bitcoin ETF product from prominent financial firm BlackRock on the Nasdaq exchange, further legitimizing crypto investments and attracting additional market participants.

This upward trajectory has persisted; by November 21, Bitcoin had jumped to a staggering $98,300. The price has climbed over 67% since early September, showcasing a robust bull market that is reminiscent of past rallies but is currently unprecedented in its scale.

Bitcoin has experienced numerous cycles of soaring highs followed by devastating lows throughout its history. The most notable peaks occurred in 2013, when Bitcoin famously surged from just $13 at the start of the year to nearly $1,000 by November, only to crash sharply soon after. Another significant spike took place in 2017, where prices shot from around $1,000 to almost $20,000 by December, only to descend into a prolonged bearish market stretching over three years, with prices plummeting to lows of around $3,000 by the end of 2018.

In March 2020, Bitcoin faced a dramatic drop amidst the COVID-19 pandemic, falling from $5,800 to $3,800 in hours, leaving many investors with sour sentiments and conversations questioning whether Bitcoin could ever recover to past levels. However, just six months later, Bitcoin’s price surged past $20,000, and by late December of that year, it had climbed to over $28,000, reigniting interest and optimism around the cryptocurrency.

What’s more, MicroStrategy has adopted an aggressive strategy toward Bitcoin acquisition, planning to raise $42 billion through equity and debt instruments to further accumulate Bitcoin. As of November 10, the company had acquired over 279,000 Bitcoins, showcasing a bullish outlook that is rooted in its CEO Michael Saylor's strong advocacy for Bitcoin as a superior store of value, outshining traditional assets like gold due to its digital nature and finite supply.

Financial analysts are keenly observing the impact of MicroStrategy’s leveraged purchasing strategy, where significant investments during a Bitcoin bull market have significantly boosted its stock price. However, this tactic also comes with inherent volatility and risk—company valuations can plummet if Bitcoin prices fall, creating potential financial turmoil for stakeholders involved.

Moreover, Hong Kong-based Booyah Interactive represents another case of major cryptocurrency investment influence. The gaming company has steadily increased its Bitcoin holdings to over 2,688 coins as of November 21, with total gains exceeding $117 million based on current market prices. Initially starting its investment strategy in August 2023, Booyah has since ramped up its buying efforts, reflecting a confidence in the lucrative potential that Bitcoin holds.

Meitu, another publicly traded entity, embarked on its cryptocurrency acquisition journey earlier, with significant investments recorded as far back as Q1 2021. By mid-2024, the company announced it held approximately 940 Bitcoins and tens of thousands of Ethereum, emphasizing the growing trend among traditional companies to invest in digital assets as viable alternatives to traditional currency.

Despite current robust market conditions, Leon, a researcher at TRON, warns that investors should remain cognizant of the unpredictable nature of cryptocurrency markets. Even amidst an upward trending market, abrupt and significant price shifts can significantly impact investor portfolios, emphasizing the need for well-thought-out risk management strategies and careful consideration of market movements.