The price of Bitcoin has surged to unprecedented heights, crossing the $100,000 mark for the first time on Wednesday. The world’s largest cryptocurrency was last trading at $103,225.
According to NBS News, this milestone comes as demand for the digital currency soars, driven by a wave of optimism following the U.S. presidential election, which saw victories for crypto-friendly candidates, including President-elect Donald Trump.
Since November 5, bitcoin’s value has jumped by over 45%, doubling in price since the beginning of the year. This latest surge underscores the growing adoption of the cryptocurrency, which was first introduced 15 years ago through a white paper penned by the elusive Satoshi Nakamoto.
Over the years, Bitcoin has become the flagship of a vast digital economy that encompasses hundreds of other cryptocurrencies, NFTs, and trading platforms.
Bitcoin’s rising price has reignited debates around cryptocurrency regulation. Critics argue that digital currencies like Bitcoin have been linked to an uptick in cybercrimes and scams, costing consumers billions annually. In response, federal regulators have adopted a cautious stance, advocating for tighter oversight.
However, the recent election results could signal a shift. Advocates are hopeful that the incoming administration will relax regulatory barriers, paving the way for broader institutional adoption of Bitcoin.
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Trump, a former crypto-skeptic, has expressed interest in establishing a U.S. bitcoin “strategic reserve” akin to those for gold and oil. During his campaign, he pledged to position the United States as a global leader in cryptocurrency innovation.
The increasing interest in bitcoin exchange-traded funds (ETFs) has also fuelled the price rally. ETFs, like BlackRock’s iShares Bitcoin Trust, allow investors to track Bitcoin’s price movements without directly purchasing the digital asset.
According to Jay Jacobs, BlackRock’s U.S. head of thematic and active ETFs, the iShares Bitcoin Trust has reached a valuation of over $45 billion since its launch in January, with $4.1 billion added in just the past month.
He attributed the rising demand to Bitcoin’s appeal as a hedge against inflation and geopolitical risks.
He said, “There’s growing interest across institutional and wealth-management spaces to learn about bitcoin, but education takes time.”
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