Bitcoin tops $100,000 US as Trump win continues to fuel crypto rise

Bitcoin has topped the $100,000 US mark for the first time, as a massive rally in the world’s most popular cryptocurrency sparked by the election of Donald Trump rolls on.

The milestone comes just hours after the U.S. president-elect signalled a lighter regulatory approach to the crypto industry, when he said he intends to nominate cryptocurrency advocate Paul Atkins to be the next chair of the Securities and Exchange Commission.

Bitcoin has soared to unprecedented heights since Trump won the U.S. election on Nov. 5. The cryptocurrency has climbed dramatically from $69,374 on election day and rose as high as $103,713 on Wednesday, according to CoinDesk.

Just two years ago, bitcoin dropped below $17,000 following the collapse of crypto exchange FTX.

How long bitcoin will stay above the $100,000 mark is uncertain. It fell back to just under $102,000 early Thursday.

As with everything in the volatile cryptoverse, the future is impossible to predict, especially for a currency tied to huge climate impacts. And while some are bullish on future gains, other financial experts continue to warn of investment risks. 

Here’s what you need to know.

What is cryptocurrency again?

In basic terms, cryptocurrency is digital money. This kind of currency is designed to work through an online network without a central authority — meaning it’s typically not backed by any government or banking institution — and transactions are recorded with technology called a blockchain.

Bitcoin is the largest and oldest cryptocurrency, although other assets like ethereum, tether and dogecoin have also gained popularity over the years. Some investors see cryptocurrency as a “digital alternative” to traditional money, but the large majority of daily financial transactions are still conducted using fiat currencies, such as the U.S. dollar. Also, bitcoin can be very volatile, with its price reliant on larger market conditions.

Why is bitcoin soaring?

A lot of the recent action has to do with the outcome of the U.S. presidential election.

Trump, who was once a crypto skeptic, has pledged to make the U.S. “the crypto capital of the planet” and create a “strategic reserve” of bitcoin. His campaign accepted donations in cryptocurrency, and he courted fans at a bitcoin conference in July. He also launched World Liberty Financial, a new venture with family members to trade cryptocurrencies.

Crypto industry players have welcomed Trump’s victory, in hopes that he would be able to push through legislative and regulatory changes that they’ve long lobbied for — which, generally speaking, aim for an increased sense of legitimacy without too much red tape.

Trump made a move in that direction on Wednesday, when he said he intends to nominate Paul Atkins to chair the Securities and Exchange Commission. Atkins was an SEC commissioner during the presidency of George W. Bush, and in the years since leaving the agency, he has made the case against too much market regulation. He joined the Token…