The cryptocurrency market made headlines on December 4 as Bitcoin surged toward the psychologically significant $100,000 mark, reaching as high as $99,999 on CME futures. This surge reflects growing institutional confidence and accelerating momentum in the digital asset space. At the same time, major market players are making bold moves—some cashing out massive gains while central bankers offer fresh insights into how they view crypto’s role in the global financial system.
Bitcoin and Ethereum Rally in U.S. Markets
On December 4, Bitcoin futures on the Chicago Mercantile Exchange (CME) climbed sharply, with the BTC主力合约 peaking near $100,000 before settling at $98,780—a 2.33% gain from the previous close. Ethereum also posted strong gains, with ETH futures rising over 6% to reach $3,893.50, briefly touching a daily high of $3,949.
As of early December 5 (UTC), spot prices reflected similar strength:
- Bitcoin: ~$98,350
- Ethereum: ~$3,802.55
This rally coincided with increased trading volume and investor enthusiasm following the launch of U.S. spot Bitcoin ETFs earlier in the year. The total assets under management across these ETFs have ballooned from around $28 billion in January to nearly **$82 billion** by early December—almost tripling in just 11 months.
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Powell Clarifies Bitcoin’s Role: Competitor to Gold, Not Dollar
At the DealBook Summit hosted by The New York Times, Federal Reserve Chair Jerome Powell delivered a clear message about Bitcoin’s place in finance: it competes with gold—not the U.S. dollar.
“Bitcoin is more like gold, only digital,” Powell stated. “People aren’t using it as a payment method or stable store of value because of its volatility. It’s not challenging the dollar; it’s competing with gold.”
This framing underscores a growing consensus among policymakers: while Bitcoin may not be viable as everyday currency due to price swings, it is increasingly seen as a digital alternative to traditional safe-haven assets like gold.
Such commentary could influence long-term regulatory approaches and institutional investment strategies—particularly as discussions continue about whether the U.S. should consider holding Bitcoin in its national reserves.
Meitu Sells Entire Crypto Holdings for $79.6 Million Profit
In a surprising move, Hong Kong-listed tech firm Meitu Inc. announced it had fully exited its cryptocurrency positions, realizing a profit of approximately $79.6 million (about ¥571 million RMB).
According to a filing with the Hong Kong Stock Exchange on December 4:
- Meitu sold all of its holdings: 940 BTC and 31,000 ETH
- Total proceeds: ~$180 million in cash ($100M from ETH, $80M from BTC)
- Original investment: $100 million made in March–April 2021
The company plans to distribute roughly 80% of the net profit as a special dividend—$0.109 HKD per share—with the remainder allocated to expand its subscription-based image and design software business.
This decision marks a strategic shift away from speculative assets toward core operational growth—a move that may resonate with conservative investors wary of crypto volatility.
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Hidden Crypto Exposure: When a $230M Company Holds $226M in Bitcoin
Another eye-opening development involves Boya Interactive (HK: 00434), a gaming company with a total market cap of just $230 million—but whose Bitcoin holdings are valued at **$226 million**.
As of November 12:
- Bitcoin: 2,641 BTC (~$54,000 average cost basis)
- Ethereum: 15,400 ETH (~$2,756 average cost)
This means the company holds more value in crypto than its entire market valuation—a situation that raises questions about transparency, risk exposure, and investor expectations.
While such bets can yield extraordinary returns during bull runs, they also expose shareholders to extreme volatility unrelated to core business performance.
Market Risks Remain Despite Bullish Momentum
Despite record highs and growing adoption, experts warn that the crypto market remains highly speculative.
According to Yu Jianning, co-chair of the Blockchain Committee at China’s Communication Industry Association:
“Bitcoin’s price is influenced by market sentiment, macroeconomic trends, technological advances, and regulatory shifts. Any new policy change—especially from major economies—can trigger sharp price swings.”
Additional risks include:
- Security threats: Hacks and vulnerabilities in exchanges and wallets
- Regulatory uncertainty: Evolving global stances on taxation, reporting, and legality
- Liquidity issues: Sudden sell-offs can trigger cascading liquidations
Indeed, Coinglass data shows that over 160,000 traders were liquidated in the past 24 hours amid the rapid price movements—highlighting how leveraged positions amplify both gains and losses.
Key Drivers Behind the 2025 Crypto Surge
Several catalysts are fueling this wave of momentum heading into 2025:
1. Spot Bitcoin ETF Adoption
Since their U.S. debut on January 10, spot Bitcoin ETFs have attracted massive inflows. BlackRock’s IBIT fund alone set records:
- Single-day trading volume: $4.1 billion
- Daily net inflow: $1.1 billion
2. Institutional Confidence
Large firms are allocating capital not just through ETFs but also via direct holdings and treasury strategies—signaling long-term belief in digital assets.
3. Macroeconomic Factors
With inflation concerns lingering and interest rates potentially stabilizing, some investors view Bitcoin as a hedge against currency devaluation—similar to gold.
4. Technological Maturity
Improvements in scalability (e.g., Ethereum upgrades), security protocols, and custody solutions have made crypto more accessible and trustworthy for mainstream users.
Frequently Asked Questions (FAQ)
Q: Did Bitcoin actually hit $100,000?
A: Not quite—but it came very close. On December 4, CME Bitcoin futures briefly touched $99,999 before pulling back to around $98,780 at settlement.
Q: Why did Meitu sell all its crypto?
A: After holding Bitcoin and Ethereum since 2021, Meitu decided to lock in profits (~$79.6M) and return most of the gains to shareholders via a special dividend while focusing on its core software business.
Q: Is Bitcoin replacing the U.S. dollar?
A: No—according to Fed Chair Powell, Bitcoin competes with gold as a store of value, not with the dollar as a medium of exchange due to its high volatility.
Q: How risky is investing in crypto now?
A: While opportunities exist, risks remain significant—including price swings, regulatory changes, and cybersecurity threats. Investors should assess their risk tolerance carefully.
Q: Can small companies holding large crypto amounts affect markets?
A: Yes. Cases like Boya Interactive show how corporate balance sheets can become highly sensitive to crypto prices—even surpassing their market caps—which may distort investor perceptions.
Q: Are we entering a new bull market?
A: Indicators suggest bullish momentum—record ETF inflows, rising institutional interest, and technical strength—but sustained growth will depend on macro conditions and regulatory clarity.
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The journey toward broader cryptocurrency adoption continues to unfold—with record prices, strategic corporate exits, and evolving regulatory narratives shaping the path forward. Whether you're an investor, developer, or observer, staying informed is key to navigating this dynamic landscape.