The price of bitcoin reached a record high of $100,000, driven by increased demand following the election of crypto-friendly candidates, including President-elect Donald Trump. Bitcoin’s price has surged over 45% since November 5 and more than doubled year-to-date. Despite its controversial nature and association with cybercrimes, cryptocurrencies, including bitcoin, have gained popularity over the years, with a growing number of digital tokens, NFTs, and trading platforms emerging. Advocates are hopeful that the new administration will adopt a more pro-crypto stance, leading to less regulation, increased investment from traditional financial institutions, and greater profitability in bitcoin mining. Trump’s shift from a crypto-skeptic to proposing a U.S. bitcoin “strategic reserve” indicates changing attitudes towards digital currencies. The recent surge in bitcoin’s price has also been fueled by the introduction of exchange-traded funds (ETFs) that track its price, with BlackRock’s iShares Bitcoin Trust ETF becoming the largest. Jay Jacobs, BlackRock’s U.S. head of thematic and active ETFs, highlighted the growing interest in bitcoin as a hedge against geopolitical risks and currency devaluations caused by inflation. He emphasized that ETFs are making it easier for investors to participate in bitcoin’s price movements. Overall, the increasing mainstream interest in bitcoin suggests that the cryptocurrency market is on the brink of widespread adoption.
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