Bitcoin’s price has blasted through the much-anticipated threshold of $100,000, raising questions about how much higher it could go – and whether it can shake off its notorious volatility.
The world’s largest cryptocurrency rose to around $103,400 shortly after 04:00 GMT on Thursday, before falling slightly.
Dan Coatsworth, investment analyst at AJ Bell, described it as a “magic moment” for the cryptocurrency and said it had a “clear link” to Donald Trump’s election victory.
Trump took to social media to celebrate the milestone, posting “congratulations Bitcoiners” and “you’re welcome!”
The president-elect had previously pledged to make the US the “crypto capital” and “Bitcoin superpower” of the world, helping to push Bitcoin’s price higher once he was elected president.
It broke through the $100k barrier after Trump said he would nominate former Securities and Exchange Commission (SEC) commissioner Paul Atkins to run the Wall Street regulator.
Mr Atkins is seen as being far more pro-cryptocurrency than the current head, Gary Gensler.
“Clearly there is anticipation that the new administration is going to be somewhat more favourable to crypto than the old administration was,” said Andrew O’Neill, digital assets expert at S&P Global.
“So for the price of Bitcoin, I think that that’s what’s driven the trend so far [and it will] likely continue into the new year,” he added.
However, Bitcoin has a history of sharp falls as well as rapid rises – and some analysts have cautioned that is unlikely to change.
“A lot of people have got rich from the cryptocurrency soaring in value this year, but this high-risk asset isn’t suitable for everyone,” said Mr Coatsworth.
“It’s volatile, unpredictable and is driven by speculation, none of which makes for a sleep-at-night investment.”
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