Bitcoin rises above $100,000 again

Topline

Bitcoin price rose above $100,000 on Wednesday, taking the cryptocurrency back above the six-figure threshold and continuing its post-election rise – after the latest US inflation report met analysts’ expectations.

Important facts

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Big number

52.8%. This is the amount the Bitcoin price rose between November 4th, the day before the election, and December 4th. During this period, Bitcoin crossed the $90,000 threshold, just three days after breaking above $80,000 for the first time. It took another three weeks for Bitcoin to reach the $100,000 mark.

Important background

With November inflation data in line with expectations, analysts say the Federal Reserve is likely to cut interest rates next week. According to Fidelity, optimism about lower interest rates tends to lead to a rise in the price of Bitcoin, as lower interest rates could improve the liquidity of assets such as cryptocurrencies. Bitcoin had already seen a surge ahead of the presidential election, with the price of the cryptocurrency rising 70% by the end of October. This surge followed the Securities and Exchange Commission approving spot Bitcoin exchange-traded funds in January. President-elect Donald Trump, a former critic of cryptocurrencies, campaigned on making the US the “crypto capital of the planet.” He has announced his support for Bitcoin mining and previously sold a number of Trump-branded NFTs. Forbes estimates that as of September 30, about $3 million of his $6 billion fortune was invested in cryptocurrencies. In the weeks since his election victory, Trump named Paul Atkins to head the SEC, citing Atkins’ pro-crypto views. Gary Gensler, the current head of the SEC who has taken enforcement actions against several crypto firms, announced he will step down from his position in January.

Further reading

ForbesBitcoin rises above $100,000 for the first timeFrom Siladitya RayForbesBitcoin Price Tops $90,000 for First Time Amid Trump Crypto SurgeFrom Derek Saul