Finance
Bitcoin value over $100,000 for the first time: Why is its price rising so high?
The infamously volatile crypto currency has seen a huge boost in support since the U.S. election with the news that Elon Musk is working closely with Trump.
In a historic moment for the cryptocurrency world, Bitcoin has surpassed the $100,000 mark for the first time, shattering its previous record of nearly $69,000 set in November 2021. This unprecedented surge comes in the wake of Donald Trump’s victory in the 2024 U.S. presidential election, sparking a renewed interest in digital currencies among investors and speculators alike.
The surge in Bitcoin’s value has had a ripple effect across the cryptocurrency market. The global cryptocurrency market is now valued at an astounding $2.79 trillion, a far cry from its humble beginnings of approximately $1 billion in 2013.
What’s driving Bitcoin’s price to such dizzying heights?
The world’s most popular cryptocurrency has experienced a meteoric rise of over 40% in just two weeks following the election results, and it is no coincidence.
A key factor behind Bitcoin’s surge is the expectation of a more crypto-friendly regulatory environment under the incoming Trump administration. During his campaign, Trump positioned himself as a staunch supporter of cryptocurrencies, pledging to make the U.S. the “crypto capital of the planet” and even proposing the creation of a bitcoin “strategic reserve”.
Coupled with this bullish sentiment is Trump’s nomination of Paul Atkins as the next chair of the Securities and Exchange Commission (SEC). Atkins, a former SEC commissioner during the George W. Bush administration, is known for his advocacy of lighter market regulation. Whether this comes to pass or not remains to be seen, but investors are certianly hopeful.
However, experts warn that the cryptocurrency market remains highly volatile.
“A lot of people have got rich from the cryptocurrency soaring in value this year, but this high-risk asset isn’t suitable for everyone. It’s volatile, unpredictable and is driven by speculation, none of which makes for a sleep-at-night investment,” said Dan Coatsworth, Investment Analyst at AJ Bell, London.
Bitcoin’s history is marked by dramatic price swings, as evidenced by its fall to just over $5,000 during the early days of the covid-19 pandemic before rising again.
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