The price of bitcoin soared past $100,000 late Wednesday evening, marking a historic milestone that was anticipated by many experts. However, by Thursday afternoon, it had pulled back to $99,140.00, after investors took profits. The move came on the heels of President-elect Donald Trump’s announcement of Paul Atkins as chair of the Securities and Exchange Commission, which is seen as a pro-crypto initiative.
Bitcoin’s surge was largely driven by institutional investors, who have shown interest in the cryptocurrency over recent years. BlackRock, Fidelity, Invesco, and others launched the first spot bitcoin ETFs at the beginning of this year, driving up demand for the asset. The industry has demonstrated its value to the institutional investing world, with many financial institutions now considering entry into crypto trading.
Federal Reserve Chair Jerome Powell likened bitcoin to gold, saying it’s a digital alternative that isn’t used as a form of payment or store of value. Mike Novogratz, CEO of Galaxy Digital, called the move a “paradigm shift,” noting that bitcoin and the entire digital asset ecosystem are on the brink of entering the financial mainstream.
There is hope that Trump will deliver on several pro-crypto initiatives in the year ahead, including establishing a national strategic bitcoin reserve. With a new administration taking charge, experts believe the rest of the world will take notice of the industry’s growth prospects.
Source: https://www.cnbc.com/2024/12/05/bitcoin-tops-100000-as-monster-2024-rally-reaches-new-heights.html