Bitcoin surged past $100,000 for the first time on Wednesday night, following the election that secured the U.S. President-elect Donald Trump a second term in office and marking a significant milestone for the world’s largest cryptocurrency.
Doubling its valuation this year, Bitcoin hit the long-awaited milestone of closing above $100,000 for the first time. The oldest cryptocurrency was reportedly trading between $98,000 and $99,000 in the afternoon on Dec. 5 after briefly touching $99,073 and by late night, it rose as high as $103,844.05.
Bitcoin is up about 45% in the two weeks since Trump was voted in as the next U.S. president and a slew of pro-crypto lawmakers were elected to Congress. Embracing digital assets during his campaign, Trump promised to make the United States the “crypto capital of the planet” and to accumulate a national stockpile of bitcoin.
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“Everyone who’s bought bitcoin at any point in history is currently in profit,” Alicia Kao, managing director of crypto exchange KuCoin, said.
Bitcoin was created in 2008 by an anonymous figure or group known as Satoshi Nakamoto, making it the first decentralized cryptocurrency. The flagship cryptocurrency emerged as a response to the 2008 financial crisis, aiming to provide a peer-to-peer electronic cash system without relying on banks.
Bitcoin uses blockchain technology, a decentralized ledger, to secure transactions. In January 2009, Nakamoto mined the first block, known as the “genesis block.” Over time, Bitcoin gained popularity and value, becoming a global financial asset and sparking the rise of thousands of other cryptocurrencies. Its history is marked by innovation, volatility, and increasing adoption in various sectors.
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However, Bitcoin has been mired in controversy ever since its inception. Its association with illegal activities, due to its pseudonymous transactions, raised concerns among governments and regulators. Its volatility has led to skepticism about its long-term viability as a currency or store of value. Environmental concerns have emerged due to high energy consumption caused by Bitcoin mining, especially with proof-of-work mining.
Additionally, regulatory uncertainty, with different countries adopting contrasting stances, has complicated Bitcoin’s acceptance. Despite these challenges, Bitcoin has also garnered support as a hedge against inflation, digital gold, and a revolutionary financial technology, continuing to spark debates on its future.
Elon Musk, a major Trump ally, is also a proponent of cryptocurrencies, famously backing the now infamous DOGE coin. Over 16 years since its inception, Bitcoin appears on the “cusp of mainstream acceptance,” per Reuters.
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The U.S. Securities and Exchange Commission (SEC) had previously sought to prevent ETFs from investing in Bitcoin, citing concerns over investor protection. However, these products have enabled more investors, including institutional ones, to gain exposure to Bitcoin. In January, the approval of the U.S.-listed bitcoin ETFs lifted the cryptocurrency.
Trump’s election also coincided with increasing institutional interest in cryptocurrencies, boosting confidence in their future. The rise of Bitcoin during this period highlights its role as an alternative asset class, with its value often driven by broader political and economic developments, alongside its inherent market volatility.