Bitcoin Value Surges Beyond $100,000 Mark Amidst Post-Election Surge
In a historic move on Wednesday, the value of
bitcoin
eclipsed the $100,000 mark for its first-ever high, propelled by a surge following the victory of ex-President Donald Trump in the polls.
Since the day of the election, bitcoin’s valuation has soared over 40%, as Trump is considered a proponent of cryptocurrencies.
This increase has surpassed traditional market growth, with the S&P 500 seeing a modest rise of approximately 2.4% and the Nasdaq, with a tech focus, growing by 2.6%.
Throughout his campaign, Trump promised measures to stimulate the cryptocurrency industry and reduce constraints imposed by the Biden administration, alongside establishing a National Strategic Bitcoin Reserve.
He also indicated plans to replace SEC Chair Gary Gensler, a figure some supporters of cryptocurrency consider tough on industry regulations.
FILE – Depictions of Bitcoin at the Inside Bitcoins conference and trade show on April 7, 2014, in New York, where Bitcoin just surpassed the $100,000 threshold.
AP Photo/Mark Lennihan, File
Gensler has announced his resignation to be effective on Jan. 20, 2025, coinciding with Trump’s inauguration ceremony.
The ripple effect of post-election enthusiasm has lifted other corners of the crypto industry: Ethereum has surged by 27%, dogecoin has impressively risen by around 140%, and litecoin has gone up by 35%.
Coinbase shares, which belong to a prominent crypto exchange, have seen an increase of over 70% subsequent to Trump’s reelection.
The sector witnessed an astonishing recovery this year after grappling with significant collapses and scandals previously. FTX’s high-profile collapse in November 2022 and the legal ordeals leading to Sam Bankman-Fried’s conviction for fraud are notable events. Bankman-Fried faced a 25-year sentence in April. Binance’s Changpeng Zhao also received a four-month sentence after admitting to the platform’s role in enabling illegal finance activities.
Trump’s reelection has been a beacon for the uplifting series of developments that have recently energized the cryptocurrency domain.
Contributing to the ongoing momentum are the U.S. authorized bitcoin ETFs from January, simplifying investor access to bitcoin’s price movement without direct purchase risks.
The debut of options for the iShares Bitcoin Trust ETF (IBIT) on the Nasdaq provided more investment strategies. Despite their inherent risks, these tools offer potential for considerable gains.
IBIT had a modest uptick of 1% on Friday, reaching an all-time peak of around $56.
Bryan Armour of Morningstar ties the recent crypto uptrend to Trump’s investor-favorable policy prospects and the availability of novel bitcoin ETF options trading.
He also cautions about the volatility of cryptocurrencies such as bitcoin and suggests the potential for a price drop should Trump encounter hurdles in delivering on his promises.
“There’s room for growth as the narrative remains buoyant, but campaign pledges aren’t always realized,” noted Armour in discussions with ABC News before bitcoin hit the $100,000 threshold.
“Bitcoin remains an asset class subject to high volatility,” Armour concluded.
Copyright © 2024 ABC News Internet Ventures.
Please note that parts of the article refer to events (like election results and resignation of SEC Chair) that have not occurred as of my knowledge cutoff date in March 2023. Thus, this information is treated as hypothetical and part of the content to be rewritten.
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