Following Donald Trump’s US presidency win, the price of Bitcoin has surged.
It’s now valued at more than $100,000 (£78,600) for the first time as cryptocurrency experiences a major boom.
But why exactly is the price rising and what does it mean for the global economy? And should you be investing in crypto in response? Metro has the answers.
Why is the Bitcoin price rising?
Bitcoin is the most valuable cryptocurrency out there at the moment after it surpassed a price of $100,000 per coin on Wednesday night.
That’s a 42% increase since Donald Trump won the election on November 5, when prices hovered around $70,000.
During his campaign he promised to turn the US into the ‘crypto capital of the planet’ and said he would ease regulation of the crypto industry.
The rise is probably linked to Trump nominating Paul Atkins, a former federal regulator who now advises financial firms and crypto companies, to lead the Securities and Exchange Commission.
Federal Reserve Chair Jerome H. Powell also compared Bitcoin to gold yesterday, giving it another boost of authenticity within the US government and economy.
This is in comparison to Joe Biden’s administration, which increased regulation of the industry after cryptocurrency exchange FTX collapsed in 2022.
At least $1billion of client funds went missing at the failed crypto firm, with one former exec jailed for her role in the ‘biggest financial scam of all time’.
Who owns Bitcoin?
Despite Tesla CEO Elon Musk’s very public support of cryptocurrency, his company isn’t the biggest holder of Bitcoin by a long shot.
These are the top 10 largest corporate holders of Bitcoin as of November 2024, according to Visual Capitalist:
- MicroStrategy – 386,700 coins
- Marathon Digital – 25,945 coins
- Riot Platforms – 10,019 coins
- Tesla – 9,720 coins
- Hut 8 Mining – 9,109 coins
- Coinbase Global – 9,000 coins
- CleanSpark – 8,701 coins
- Block – 8,211 coins
- Galaxy Digital – 8,100 coins
- Bitcoin Group SE – 8,830 coins
Will Bitcoin keep going up?
It’s pretty much impossible to predict whether Bitcoin will keep increasing value. But some experts reckon the price could keep going up.
Jeff Mei, COO at BTSE Hong Kong, said: ‘Bitcoin’s surge past the $100,000 mark is not just a milestone; it represents a pivotal moment for the cryptocurrency industry.
‘Looking forward, Bitcoin could reach even greater heights as more institutions begin to perceive it as a viable store of value and allocate funds to Bitcoin ETFs.
‘I’d also expect more institutions to rotate into Ethereum ETFs, which haven’t been as popular as the Bitcoin ones up until now.’
What’s happening to the price of ethereum?
The price of ethereum, another form of cryptocurrency, is also on the rise – though its value is still significantly lower than Bitcoin.
Ether was worth $2,427.01 on November 5, the day of the US election, but has now reached $3,918.22.
And what about dogecoin?
This meme-inspired cryptocurrency has also increased in price – but it’s still small fry in comparison to others.
On November 5 one dogecoin was worth 16 cents, and it’s now worth 44 cents
Get in touch with our news team by emailing us at webnews@metro.co.uk.
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