The price of bitcoin hit $100,000 for the first time as demand for the digital currency surged following victories for crypto-friendly candidates, including President-elect Donald Trump. Bitcoin’s price has more than doubled year to date and surged over 45% since Nov. 5. Created by Satoshi Nakamoto 15 years ago, bitcoin has sparked a digital currency landscape and spawned peer-to-peer transactions, NFTs, and trading platforms. However, cryptocurrencies remain controversial due to cybercrimes and scams. Despite this, bitcoin advocates hope for less regulation and increased profitability in the space. Trump, once a skeptic, now supports creating a U.S. bitcoin “strategic reserve.” The crypto market is unpredictable, but bitcoin’s value has steadily increased over time. Demand for bitcoin has been driven by the launch of ETFs tracking its price, with BlackRock’s iShares Bitcoin Trust ETF being the largest. Jay Jacobs of BlackRock stated that the IBIT ETF has reached a value of more than $45 billion since its launch in January, with growing interest from institutional and wealth management sectors. Jacobs noted that investors view bitcoin as a hedge against geopolitical risks and currency devaluations. Mainstream interest in bitcoin is expected to grow as more investors seek exposure through ETFs. Education and time will be key in increasing adoption of bitcoin among a wider range of investors.
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