The price of Bitcoin has been rising since its launch in January 2009. Cryptocurrencies are known for being extremely volatile, with events such as halvings and presidential elections having a significant impact on their prices.Therefore, there are long periods when Bitcoin drops sharply. The most recent occurred in 2021 and 2022, when prices plummeted due to reduced liquidity in financial markets.
What is happening with the price of Bitcoin? The cryptocurrency sector finally boomed in November, with bitcoin reaching $93,495 – a price not seen in a long time. Several factors contributed to this rise in Bitcoin, mainly Trump's presidential victory, which could boost the adoption of the cryptocurrency among institutional investors.
Bitcoin (Image: Getty Images) Furthermore, as Bitcoin is the largest cryptocurrency by market value, as well as being the oldest, its price movements are strong enough to drive the rest of the cryptocurrency market.
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In January of this year, the US Securities and Exchange Commission (SEC) officially authorized bitcoin trading in ETFs. The cryptocurrency, which started at $44,000 in 2024, reached $49,000 in the days leading up to the SEC's announcement, but cooled off somewhat in the following weeks.
Image: Shutterstock Subsequent investments in these ETFs drove bitcoin prices to new highs of $73,000 in March. In the following months, however, the price fell again, trading at $60,000 before falling below $55,000 in September. Then, in November, prices rose to more than $90,000 after former President Donald Trump won the election.
US Elections and Trump Crypto industry players were hoping for a Trump victory, hoping he would be able to pass legislative and regulatory changes – which they have been pushing for years.
The industry supports candidates who are directly involved in political action and promise more space for cryptocurrencies. Coinbase, a major digital currency exchange platform, spent more than $50 million on donations in this year's election cycle, openly supporting Trump.
The expectation among players is that Trump's second term will usher in the first pro-crypto regime. During his campaign, he promised industry-friendly changes. Additionally, Trump has embraced the industry in several ways in recent years, even releasing NFTs himself.
Donald Trump NFTs halved via CollectTrumpCards/reproduction In April of this year, bitcoin underwent its fourth “halving”. This event is pre-programmed to occur once every 210,000 blocks – approximately every four years, doubling the reward for mining, i.e. the creation of new bitcoins.
This measure is important for the industry because it limits the supply of new coins by reducing the number of new Bitcoins created by the network. So, if demand remains strong, this supply shock could help increase prices in the long term. In May, shortly after the halving, the price of bitcoin reached US$67,491 before falling again.
Bitcoin Notes The price of Bitcoin has reached $97,000, the highest price for the asset since its inception. In fact, the record began shortly after Trump's election, when the cryptocurrency surpassed the $80,000 mark for the first time in its history.
Image: Unsplash/@ewankennedy19 Many investors expect the price of bitcoin to reach $100,000, but many experts suggest the asset will not last long.
Importantly, the price of Bitcoin and cryptocurrencies as a whole is shaped by the interaction of factors such as market sentiment, regulatory developments and macroeconomic conditions. In other words, according to experts, even if the current situation seems positive, the cryptocurrency market is inherently volatile and prices change quickly.