As Bitcoin recently surged past the $100,000 mark, the cryptocurrency market has seen a frenzy, with many mainstream coins doubling in valueThe Bitcoin boom has become a spectacle, captivating investors, analysts, and ordinary people alikeYet, the question on everyone's mind is whether this unprecedented growth can be sustained or if we are witnessing a market bubble about to burst.

Various factors underlie Bitcoin's soaring priceAmong them, government support stands outNotably, the U.Sadministration has expressed its intentions to establish a "national strategic Bitcoin reserve," paving the way for enhanced legitimacy and stability in the marketThis endorsement from influential figures, including champion supporters like Elon Musk, further fuels the price rally, as sentiments in cryptocurrency circles often hang on the whims of a few key personalities.

As Bitcoin approached the $100,000 threshold, the market witnessed a prolonged tug-of-war between bulls and bears

Some investors rationally chose to cash out their profits, anticipating a market correctionFor instance, the Hong Kong-listed entity Meitu, known for holding digital currencies, announced complete divestment of its crypto assets by December 4. However, the outlook remains bullish for numerous participants, with companies like MicroStrategy announcing plans to raise $42 billion over the next three years for more Bitcoin acquisitions.

The fundamental question remains: Has Bitcoin reached its peak? With the cyclical nature of digital currencies, the massive price movements pose substantial implications for those engaged in transactional activities and for companies listed on exchanges that relate directly to these digital assetsInvestors eagerly await any indicators that might suggest whether this rally can be maintained, or if it will lead to a drastic downturn.

Support from the U.S

government serves as a vital pillar propelling Bitcoin's value.

The ongoing debate about Bitcoin's peak revolves around its intrinsic investment valueThe true value of Bitcoin emerges not from its raw form but from social and governmental recognitionMuch like antiques, gold, or national currencies—which possess minimal intrinsic worth without collective trust—Bitcoin’s perceived value derives from its acceptance as a legitimate asset by various governments and institutions.

Since its inception in 2008, Bitcoin has operated on blockchain technology, gaining traction over timeWhilst its intrinsic investment value initially appeared limited, rising acceptance among nations has heightened its status, especially in the U.S., where Bitcoin’s role is increasingly likened to that of gold

This turn of events has allowed Bitcoin to benefit from a burgeoning environment characterized by strong government backing of cryptocurrencies, creating waves across traditional financial markets including stocks, bonds, and futures.

In the short run, profit-taking may contribute to price fluctuations or declinesYet, in the medium to long term, if Bitcoin sustains above the $100,000 level, possibilities exist for further appreciationThe driving forces for this potential growth include:

Firstly, many government officials express supportive stancesWith potentially more relaxed regulations on the horizon, the environment may become increasingly favorable for Bitcoin investorsSecondly, heightened participation from institutional investors underpins a more active marketplace, especially given the establishment of Bitcoin ETFs, enhancing retail investor involvement too

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Finally, as the next Bitcoin halving occurs in 2024, scarcity due to increased mining difficulty coupled with escalating interest—particularly as a reserve asset—could lead to a supply-demand imbalance favoring higher prices.

The international atmosphere remains increasingly conducive to investmentMore regions—including not only the U.Sbut also areas like Hong Kong—are lessening investment restrictions, thereby potentially nurturing a bull market for cryptocurrenciesCompanies publicly traded in Hong Kong that hold Bitcoin are likely to benefit additionally; those that steadfastly cling to their assets may witness significant performance improvements and valuations soar in line with Bitcoin's price movements.

Companies holding Bitcoin are reaping substantial rewards, and new avenues for long-term investment are opening up.

In the Hong Kong market, Bitcoin-related stocks include listed companies like OK Blockchain (01499), Xiong'an Technology (01647), and Meitu, alongside cryptocurrency trading platforms like New Hope Technology Holdings (01611), whose Huobi exchange ranks high in global trading volumes

Other players include Bitmain, a producer of mining rigs, and publicly traded companies in the U.Slike Canaan Creative.

Notably, New Hope Technology stands out as the only crypto exchange listed in Hong Kong, offering services including virtual asset trading, technology solutions, and asset managementA significant portion of the company’s revenue flows from cryptocurrency trading incomeIn pursuit of greater asset returns, New Hope has recently engaged a third party for quantitative arbitrage services, marking an ambitious expansion of their operational strategy.

While several listed companies hold Bitcoin, OK Blockchain has performed significant reduction strategies this yearAccording to their report for the first half of the 2025 fiscal year, their digital asset portfolio stood at approximately HKD 421 million, with holdings of stablecoins, Bitcoin, and Ethereum significantly decreased in recent months, leaving them well positioned in a rising market.

Conversely, Meitu has managed to navigate Bitcoin investments with greater precision

By November, the company commenced selling its acquired crypto assets, amassing revenues from a total of approximately 31,000 Ethereum and 940 Bitcoin, realizing profits exceeding $80 million with plans to distribute much of that as a special dividend to shareholders, presenting a lucrative opportunity for investors.

Additionally, Xiong'an Technology has entered the Bitcoin arena, revealing minimal holdings by the end of the first half of 2025, while Asia Fruits, a relatively new entrant, engaged in purchases during the second half, indicating a growing interest in crypto investments among diverse corporate entities.

As a beneficiary of the Bitcoin mining industry, Canaan Creative’s narrative reflects the complexities of transitioning into artificial intelligence, though they maintain a substantial Bitcoin holding

As of March 2024, their holdings can be valued considerably given current price levels, potentially yielding substantial returns.

Interest in Bitcoin-related stocks exhibits significant variance, especially since October of this yearCompanies like Xiong'an Technology and OK Blockchain have seen their stock prices double, while Meitu led profit margins, contrasting starkly with the situation of New Hope Technology, which has not yet capitalized on the price surgesU.S.-listed Canaan Creative, however, has displayed remarkable responsiveness to Bitcoin's price movements, with its stocks marking considerable gains recently.

In summary, the outlook for Bitcoin appears predominantly positiveMost investors remain optimistic, reflected in analyses, such as that from Wall Street investment firm Bernstein, which anticipates Bitcoin reaching $200,000 by the end of 2025. As analysts predict further price increases, more publicly listed companies are likely to engage with cryptocurrency trading, coupled with increased participation from retail investors, forecasting enhanced trading activity.

Ultimately, cryptocurrency exchanges stand to benefit the most from rising Bitcoin prices, with New Hope Technology poised to be favored in Hong Kong's market due to its unique positioning