As U.S. assets shake, flee to Bitcoin… Surpasses 110,000 dollars for the first time in history

Bitcoin broke through 110,000 dollars, setting a new historical high. As traditional assets such as bonds, dollars, and stocks shake simultaneously, the market's funds are flocking to Bitcoin, a decentralized asset. As financial instability and policy uncertainty from the U.S. government grow, Bitcoin's role is being highlighted as a third alternative, neither a safe asset nor a risky asset.

According to CoinMarketCap on the 22nd, Bitcoin surpassed 110,000 dollars around 8:30 a.m. and rose to 111,861 dollars at noon, reaching a new all-time high. It surpassed the 109,114 dollars recorded on January 20 in about four months. The domestic price is 155.32 million won, the highest since February, but due to exchange rate effects, it falls short of January's highest won-based price.

The background for this rise includes the Trump administration's large-scale tax reduction push. Concerns about the expansion of the U.S. government's fiscal deficit are shaking bond yields and dollar value, making the stock market unstable, and Bitcoin is being re-evaluated as an asset refuge. Bitcoin's issuance is fixed at 21 million and is attractive because it is free from national risk, as it is not controlled by governments or central banks.

Minseung Kim, head of the Korbit Research Center, explained, “Bitcoin is an asset born out of skepticism about the centralized financial system triggered by the 2008 financial crisis,” and said, “It is a natural flow that it is being re-evaluated at a time when trust in the U.S. government is shaking.”

Meanwhile, the stablecoin regulation bill passed by the U.S. Congress on the 19th also acted as another catalyst for Bitcoin's rise. The bill imposes 100% reserve retention and anti-money laundering obligations on stablecoin issuers, and is evaluated to signal the integration of the cryptocurrency ecosystem into the institutional realm. As the U.S. officially recognizes stablecoins as a payment method, confidence in the entire cryptocurrency is also increasing.

The actions of professional investment firms are also stimulating demand for Bitcoin. Strategy, noted for the ‘Bitcoin Treasury’ approach, currently holds over 570,000 and has valuation gains of 53 trillion won. Cantor Fitzgerald, Tether, and SoftBank's joint venture ‘Twentyone’ that mimicked this strategy purchased 42,000 bitcoins, amounting to about 5.4 trillion won, immediately after establishment.

JP Morgan recently allowed clients direct investment in Bitcoin, and Jeff Kendrick of Standard Chartered predicted, “Institutional fund inflows are intensifying” and said “Reaching 120,000 dollars in the second quarter, and possibly 200,000 dollars by year-end.”

The more traditional finance shakes, the more Bitcoin's presence grows. It is no longer a speculative asset chasing short-term price fluctuations, but is being established as a new axis of asset allocation in the global capital market.