Bitcoin (BTC) sold for more than $100,000 in Wednesday night trading, setting another all-time high benchmark in the early bull market.
Digital assets will be sold in March 2024, weeks after the U.S. Securities and Exchange Commission (SEC) approved several exchange-traded funds (ETFs) for investors seeking to acquire digital assets, according to data from CoinMarketCap.com. , peaked at around $73,000, a previous record in 2022. At the end of October, Bitcoin approached the $73,000 record, but then retreated to the $60,000 range, before surging to an all-time high of $75,000 before the end of the first week of November. Since then, BTC has trended above the new price benchmark, selling for the first time on November 13th at $90,000.
On Wednesday night, BTC soared from about $98,500 to $103,000 in one hour, breaking the six-figure price barrier that would have been unthinkable 10 years ago when the asset was worth less than $1,000 most of the year. Ta.
Several factors may have contributed to last month's price movement. Investors are excited about President-elect Donald Trump's victory over Kamala Harris (he pledged to create a BTC “strategic reserve”, appealing directly to Bitcoiners on the campaign trail) and Gary Gensler. He may have been encouraged by the announcement that he was a villain in the eyes of many. Cryptocurrency fans will likely resign from the SEC if President Trump takes office.
However, one of the key factors in Bitcoin's enduring rise is the “halving” (a 50% reduction in the issuance of new “coin” units) that occurs every four years, and which reduces Bitcoin's ledger. “Mining” is performed to protect the recording network. BTC trading becomes more competitive and costs more. The most recent Bitcoin halving occurred in April 2024. Similar to 2012, 2016, and 2020, BTC appears to be entering price discovery approximately 5 months after the latest halving.
Historically, Bitcoin has grown in a parabolic upward cycle. “crash” The price has fallen far above the previous cycle's high.
If Bitcoin issuance slows, it will eventually become a deflationary currency and an alternative to the central banking system. For example, the US dollar is intentionally inflationary, encouraging spending and long-term debt. give a penalty personal savings. Before Bitcoin, the most common way for the middle class to beat inflation was to invest in the stock market and enrich brokers and third parties through fees and penalties on withdrawals before retirement.
