Bitcoin reached $100,000 for the first time Wednesday, driven by strong demand and a pro-crypto election outcome. Since November 5, bitcoin’s price has risen over 45%, with year-to-date gains exceeding 100%. The surge follows victories by crypto-friendly candidates, including President-elect Donald Trump.
Bitcoin’s rise to $100,000 marks a milestone for the currency created 15 years ago from a brief white paper. Its mysterious author, Satoshi Nakamoto, outlined ideas that have since shaped a vast peer-to-peer transaction landscape. This ecosystem now includes hundreds of digital tokens, NFTs, and trading platforms.
Cryptocurrencies like bitcoin have fueled a rise in cybercrimes, causing billions in consumer losses, according to the FBI. These concerns have led federal regulators to adopt a skeptical stance toward many crypto initiatives.
Following the election, bitcoin supporters hope for pro-crypto policies in Washington. They aim to ease strict regulations, attract traditional financial institutions to bitcoin investments, and boost mining profitability through increased energy production. Former crypto-skeptic Donald Trump proposes a U.S. bitcoin “strategic reserve” similar to those for gold and oil. During his third presidential run, he praised crypto innovation at the Bitcoin Conference in Nashville, pledging to make the U.S. a crypto hub.
Experts caution that bitcoin’s notorious price volatility is unlikely to stabilize, regardless of leadership. Bitcoin’s upward price growth is undeniable, with demand increasingly channeled into ETFs like BlackRock’s iShares Bitcoin Trust, valued at over $45 billion since January.
BlackRock’s Jay Jacobs attributes recent growth to $4.1 billion added in the last month and rising global interest in bitcoin as a hedge against geopolitical risks.
ETFs make bitcoin accessible to investors, and Jacobs predicts mainstream interest will eventually reach a tipping point.
However, Jacobs notes that education remains crucial for broader adoption, especially among institutional and wealth-management investors.
