Bitcoin reached a major milestone on Wednesday, with its price hitting $100,000 for the first time ever. The surge in demand for the digital currency follows the election of crypto-friendly candidates, including President-elect Donald Trump. Since November 5th, the price of bitcoin has increased by more than 45%, and year-to-date prices have more than doubled. This milestone comes 15 years after bitcoin was introduced in a white paper by Satoshi Nakamoto, whose ideas have led to the creation of a vast landscape of peer-to-peer transactions and digital tokens.
While cryptocurrencies have garnered controversy due to their association with cybercrimes and scams, there is optimism among bitcoin advocates that the incoming administration will be more supportive of digital tokens. Trump, who was previously skeptical of crypto, has expressed interest in creating a U.S. bitcoin “strategic reserve” and making the country a crypto hub. Despite the volatility of bitcoin prices, there has been a steady upward trend in value, with demand for bitcoin ETFs, like BlackRock’s iShares Bitcoin Trust ETF, growing rapidly.
According to Jay Jacobs, BlackRock’s U.S. head of thematic and active ETFs, the IBIT ETF has seen its value increase to over $45 billion since its launch in January. Jacobs attributes the growing interest in bitcoin to its perceived value as a hedge against geopolitical risks and inflation-induced currency devaluations. As more investors, both institutional and individual, look to gain exposure to bitcoin through ETFs, mainstream adoption of the cryptocurrency is expected to increase significantly in the future.
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