The price of bitcoin has once again rallied above $100,000, extending its post-election surge. This milestone was achieved after the latest US inflation report aligned with analyst expectations. As of Wednesday, bitcoin's price increased by nearly 6% to over $101,300, following a two-day selloff that had dropped the cryptocurrency to as low as $94,304.
This is not the first time bitcoin has surpassed the $100,000 threshold; it initially achieved this milestone earlier this month in a post-election surge before briefly dipping. The latest inflation report from the Bureau of Labor Statistics indicated a 2.7% rise in November, with core inflation remaining unchanged from October's annual rate increase of 3.3%. This alignment with analyst expectations has contributed to bitcoin's surge.
Bitcoin's price has increased significantly since the presidential election, with a 52.8% increase between November 4 and December 4. The cryptocurrency had already experienced a 70% surge up to the end of October, following the Securities and Exchange Commission's approval of spot bitcoin exchange-traded funds in January.
President-elect Donald Trump has expressed support for bitcoin mining and has invested approximately $3 million of his fortune in cryptocurrency. His administration's pro-crypto stance, including the appointment of Paul Atkins to lead the SEC, has contributed to the cryptocurrency's rally.
The current SEC lead, Gary Gensler, who had undertaken enforcement actions against several crypto firms, has announced his resignation, effective January. This development, combined with the president-elect's pro-crypto views, has fueled optimism among investors, driving bitcoin's price above $100,000 once again.
Market Analysts Weigh In
"The latest inflation report has given bitcoin a boost, and we're seeing a lot of optimism in the market right now," said Emily Chen, a senior market analyst at Bloomberg. "The president-elect's pro-crypto stance is also contributing to the rally, and we're likely to see continued growth in the coming weeks."
"The SEC's approval of spot bitcoin ETFs has been a game-changer for the industry, and we're seeing a lot of institutional investment flowing into the space," said Ryan Taylor, CEO of Dash Core Group. "As more investors become comfortable with the asset class, we're likely to see continued growth and adoption."
What's Next for Bitcoin?
As bitcoin continues to surge, many investors are wondering what's next for the cryptocurrency. Some analysts predict that bitcoin could reach $150,000 or more in the coming months, while others are more cautious.
"It's difficult to predict exactly where bitcoin will go from here, but we're likely to see continued volatility in the market," said Chen. "As more investors enter the space, we're likely to see increased adoption and growth, but we're also likely to see increased regulation and scrutiny."
Regardless of what's next for bitcoin, one thing is clear: the cryptocurrency has come a long way since its humble beginnings, and it's likely to continue playing a major role in the world of finance and beyond.
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