Bitcoin has officially surpassed the US$100,000 mark, its highest value since its inception over a decade ago. According to Kraken, the cryptocurrency trade is at US$103,359. This milestone solidifies Bitcoin’s status as a key player in the financial world, though its value remains tied to the US dollar. Despite its success, Bitcoin has yet to replace traditional currencies, serving instead as an alternative payment method and a popular investment asset.
Bitcoin’s price surge follows election news
The dramatic rise in Bitcoin’s value began on Election Day, coinciding with Donald Trump’s victory in the 2024 US Presidential Election. According to data from CoinDesk, Bitcoin was trading at around US$69,000 before jumping to US$75,000 following the announcement of Trump’s win. The momentum continued, with Bitcoin climbing steadily as investors anticipated a more crypto-friendly environment under the new administration.
Trump’s return to power has been marked by pro-crypto policies, including the launch of his cryptocurrency platform. He has pledged to retain the Bitcoin holdings owned by the federal government and announced his intention to dismiss Gary Gensler, the current chair of the Securities and Exchange Commission (SEC). Gensler, known for his push to regulate cryptocurrency firms, later revealed that he plans to step down in January.
Adding to the market excitement, Trump unveiled his pick for the next SEC chair: former Republican commissioner Paul Atkins. Atkins, a co-chair of the Chamber of Digital Commerce’s Token Alliance, is a vocal advocate for digital assets. Trump described Atkins as someone who understands the importance of innovation, stating that such advancements are critical to “Making America Greater than Ever Before.”
Other factors driving Bitcoin’s rise
The election didn’t solely influence Bitcoin’s surge. The launch of options trading on BlackRock’s Bitcoin exchange-traded fund (ETF) also played a significant role. On its first day, the ETF saw an impressive US$1.9 billion in trades, further bolstering investor confidence.
The cryptocurrency’s milestone is also part of a broader trend, with institutional investors increasingly embracing digital assets. BlackRock’s entry into the market is seen as a major step toward legitimising Bitcoin, making it more accessible to traditional investors.
While Bitcoin’s future remains uncertain, its journey past US$100,000 marks a pivotal moment in its history. For now, it stands as a testament to the growing acceptance of cryptocurrencies in the global financial landscape.
