Bitcoin price reaches $100,000 for the first time
The Bitcoin price breached the $100,000 mark for the first time on Wednesday, December 4, due to various political and economic reasons.
Last November 5, the king of cryptocurrencies soared to unprecedented heights after Donald Trump’s presidential election win.
READ: US might launch strategic bitcoin reserve
Article continues after this advertisementFrom $69,374 on Election Day, it rose as high as $101,512 on Wednesday. CBS News noted that it was only two years since it dropped below $17,000 following the collapse of crypto exchange FTX.
Why is the Bitcoin price reaching record highs?
"Who can ban Bitcoin? Nobody. And who can prohibit the use of other electronic means of payment? Nobody. Because these are new technologies. And no matter what happens to the dollar, these tools will develop one way or another, because everyone will strive to reduce costs and… https://t.co/Kjnk0RT0i3
— matthew sigel, recovering CFA (@matthew_sigel) December 4, 2024
Bitcoin is a cryptocurrency, a digital asset operating on a decentralized computer network called a blockchain.
Its supporters see it as the next step for the global financial system. Many have also been applying its technology to various products and services.
Article continues after this advertisementHowever, it has gained a negative reputation as many scammers and criminals use cryptocurrencies for malicious activities.
NBC News reported the former crypto-skeptic Trump had expressed interest in creating a US bitcoin “strategic reserve.”
It would function like the traditional gold reserve, which supports banks and stabilizes currency value during economic upheaval.
Jay Jacobs, the US head of thematic and active ETFs for the global investment firm BlackRock, told NBC that more investors worldwide see Bitcoin as a hedge against geopolitical risks.
Expected regulatory changes are also driving the digital asset’s record growth. On December 4, Donald Trump announced SEC Commissioner Paul Atkins will be the next SEC chairperson.
In response, Ripple CEO Brad Garlinghouse immediately praised the US president-elect’s choice on Twitter.
Ripple is the company behind XRP, one of the largest cryptocurrencies worldwide.
“An outstanding choice – Paul Atkins at the helm of the SEC will bring common sense back to the agency,” Garlinghouse stated.
“It’s time to swiftly and definitively end the prohibition era on crypto, restoring freedom of choice, economic growth, and innovation,” he added.
Lastly, the bitcoin price has grown as more countries have recognized its importance. Crypto news website Coingape reported that Russian President Vladimir Putin had voiced strong support for digital assets.
In his speech at the Russia Calling Investment Forum, he stated: “Because these are new technologies and no matter what happens to the dollar…”
“These tools will develop one way or another because everyone will strive to reduce costs and increase reliability.”
